IPO Window Remains Closed The economic turmoil of the last few years has caused a dramatic decline

IPO Window Remains Closed
The economic turmoil of the last few years has caused a dramatic decline in the number of IPOs. In stark contrast to previous years, only two medtech IPOs were completed in 2009, with a slightly improved rate of nine medtech IPOs completed in 2010.

In 2011, the medtech IPO market became even more volatile. The early part of 2011 saw a surge of registrations for medtech IPOs. However, across all industries, 215 IPOs were withdrawn or postponed in 2011, the highest number ever recorded, due to an environment increasingly hostile to new stock offerings. The high hurdles of the IPO market make an IPO unattainable for most medical device companies and thus, these companies are placing more focus on M&A transactions for funding and growth opportunities.