Like most industries, the global financial crash of 2008 had a significant impact on the IPO market for medical device companies, with only 12 completed deals in 2008 and 14 in 2009, compared to an average of 40 deals across the previous four years. While the medical devices IPO market also struggled in 2012 with 22 deals at a total value of $692 million, the total number and value of deals had since recovered to pre-crisis levels, with completed IPOs totaling over $2.3 billion in each of the past four years.
The largest deal saw OptiNose, a U.S. biopharmaceutical company based in Pennsylvania, raise $138 million in its IPO that was announced in October. OptiNose has developed proprietary internasal drug-delivery devices for its medications for migraine and chronic inflammatory disease.
Other notable deals in 2017 included biopharma companies Erytech Pharma and Nucana Biomed, both of which manufacture companion diagnostics used to identify cancer patients who are suitable for treatment with their products.
In terms of companies solely involved in medical devices, Sisram Medical, a manufacturer of medical aesthetic devices, and BGI Genomics, a diagnostics and research services provider, raised $114.5 million and $80.1 million, respectively.
Last year’s total could be dwarfed by a single deal this year, as Siemens plans to float its healthcare unit, known as Siemens Healthineers, on the Frankfurt Stock Exchange in the first half.
Elliot King, Healthcare Analyst at GlobalData, said, “Siemens Healthineers has had a strong year and would offer a low-risk opportunity to invest in an established major player within the medical technology space. From Siemens’ perspective, an IPO of its healthcare division should be advantageous with regards to possible future acquisitions, as it looks to continue to transition away from imaging, Siemens’ core business, toward other developing healthcare markets.”
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