From Innovation to IPO: A Strategic Checklist for Medtech Companies

After several years of volatility and unfavorable market dynamics, the initial public offering (IPO) market for medical technology companies is beginning to reopen meaningfully. Following the most recent IPO boom in 2020 and 2021, higher interest rates and inflation brought new IPO issuances to a near standstill from 2022 to 2024. During that period, many medtech companies postponed plans to go public, creating a significant backlog of IPO deals. 

Activity rebounded slightly in 2025, with 202 IPOs raising more than $44 billion in capital, but that total is still significantly off from the record of 1,035 IPOs in 2021 that raised more than $285 billion. More than 30 healthcare and medtech companies went public in 2025, and among the most closely watched was the December 2025 IPO of Medline Industries, a global medical supplies manufacturer and distributor. MDLN had the year’s largest IPO, raising $6.26 billion and achieving a valuation of more than $38 billion—making it the largest private equity-backed IPO ever by total capital raised. Alongside this mega-IPO, many other medtech companies completed successful IPOs in 2025, including those focused on diabetes, oncology, cardiovascular, and surgical devices or therapies.

Estimates of the global medical device market vary by source, but recent data estimate its value at approximately $586 billion to $678 billion (2025), with a projected 6% to 7% annual growth rate through 2034.

Market Drivers and Trends 

Overall, the U.S. IPO market is regaining momentum, and industry experts are optimistic about an uptick in new issuances in 2026. Analysts also predict a return to a more robust IPO market for the medtech industry itself, with a significant backlog of late-stage and venture- and private equity-backed companies waiting for an attractive window in which to go public, but the market is selective. There are several trends worth noting: 

• The current IPO market favors larger, well-capitalized issuers with clear commercial traction and reimbursement pathways.
• Diagnostics, minimally invasive technologies, and AI-driven capabilities and analytics are of particular interest. AI integration is a major value driver, with high multiples being assigned to companies with these innovations. 
• A robust patent strategy remains important for driving medical device IPOs. 

Medtech companies with at least 10 issued patents command deal values more than eight times higher than those with no patents. IPO-favorable patent portfolios protect core technology, facilitate high-value exits, and provide an average $15 million to $20 million in licensing revenue. Key strategies include aligning patents with U.S. Food and Drug Administration (FDA) submissions, conducting ongoing patent landscape searches, and building defensive and competitive patent “fences” around innovations. 

The medtech IPO window appears to be reopening but remains cautious. The market is favoring companies that demonstrate commercial traction, clear reimbursement pathways, robust clinical evidence, and a defensible intellectual property (IP) portfolio.

From Innovation to IPO: Key Considerations 

For medtech companies, one of the most important indicators of long-term value is the strength of their IP. In many cases, patents and other IP assets form the foundation of a company’s valuation and are scrutinized heavily by both underwriters and investors during the IPO process.  

The following highlights key strategic considerations for companies considering or preparing for an IPO.

1. Identify Unmet Medical Needs: Successful companies focus on technologies that address significant unmet medical needs and can potentially drive widespread market adoption. Investors and large healthcare companies are particularly drawn to innovations that improve patient outcomes, transform clinical practice, or expand treatment options for underserved populations. Products targeting large markets with clear clinical and economic value tend to attract greater investor interest and command higher valuations. Companies preparing for an IPO should work with advisors to clearly articulate how their technology addresses a significant healthcare need and how it can scale commercially, which is essential to building investor confidence.

2. Know the Market and Competitors: Disruptive technologies that improve patient outcomes are in high demand. Businesses that demonstrate both technological differentiation and a well-defined market strategy are more likely to attract investor confidence. Understanding competitors’ IP landscape is also critical and can reveal areas of “white space” where new technologies can be protected and commercialized.

3. De-Risk the Technology and the Company: For IPO candidates, reducing uncertainty is critical to fostering investor confidence. Before any IPO, companies should proactively identify and address risks that may arise during underwriter and investor due diligence. Underwriters, investors, and potential partners will closely evaluate both the establishment’s technology and legal and corporate foundation. Common issues include:

• Regulatory challenges related to FDA approvals
• Weaknesses in IP protection
• Potential patent infringement risks or claims
• Corporate structure or capitalization issues

Addressing regulatory, competitive, corporate, and IP risks early can help streamline the due diligence process and strengthen a company’s equity story for an IPO. 

4. Build a Strategic Patent Portfolio: A strategic patent portfolio is crucial to corporate growth and survival, a key factor in positioning for an IPO, and can be leveraged both offensively as a “sword” to strike competitors and defensively as a “shield” to avoid opponents’ attacks.

To achieve broad protection, companies should consider both current and future business objectives and anticipate how competitors might attempt to design around their technology. Patent claims may cover multiple aspects of the innovation, including:

• The overall device 
• Key components or subsystems
• Disposable elements or accessories
• Manufacturing methods 
• Therapeutic uses and treatment methods
• Combination therapies and related applications
• AI algorithms

Protecting these different elements creates a “picket fence” of patents around the core technology, making it significantly more difficult for competitors to design around the innovation while reinforcing the company’s competitive position in the marketplace.

5. IP Review: Before pursuing an IPO, companies should consider conducting a comprehensive internal review of their IP assets. Key diligence steps, which will mirror the diligence that underwriters and investors will conduct, include:

• Freedom-to-operate analysis: Evaluate whether products may infringe on third-party patents.
• Ownership verification: All patents and patent applications should have clear ownership records, with assignments properly recorded with the U.S. Patent and Trademark Office.
• Licensing review: Review inbound and outbound licensing agreements to ensure there are no restrictions affecting commercialization.
• Portfolio maintenance: Review expired or abandoned patents to determine whether they can be revived or replaced. 

Completing this assessment before an IPO reduces risk and demonstrates to underwriters and investors that the company has taken a proactive approach to IP protection and management.

6. Review and Strengthen Material Contracts: In approaching an IPO, underwriters will closely scrutinize agreements fundamental to a company’s operations. Therefore, businesses should have a clear handle on their significant contracts, which typically include key supplier and manufacturing agreements, distribution and commercialization arrangements, clinical trial agreements, licenses, and significant customer relationships.

Importantly, many agreements deemed to be material under SEC rules will need to be publicly filed as part of the IPO process. This creates a separate layer of risk, as commercially sensitive terms may become visible to competitors, partners, and customers. While confidential treatment requests and redactions are available, such measures may not fully protect all information a company would prefer to keep private. Consequently, management teams should take a proactive approach in advance of an IPO—reviewing existing agreements with their counsel with potential public disclosure in mind, considering whether sensitive provisions can be revised, and structuring future agreements to anticipate eventual disclosure. 

7. Assess Litigation and Dispute Exposure: Litigation risk is always a core diligence focus of underwriters and investors in any IPO. Companies should conduct a thorough assessment of all pending, threatened, and potential claims, including IP disputes, product liability matters, commercial disagreements, employment claims, and any regulatory inquiries or enforcement actions. In addition to understanding the merits and potential financial exposure of these potential lawsuits, businesses may wish to consider how they’ll be perceived by investors and take steps to clarify, narrow, or resolve disputes before the IPO. 

It is also worth recognizing a practical dynamic: the IPO itself can change a company’s litigation profile. Newly public companies are often viewed as more attractive targets for lawsuits given their increased visibility, SEC and stock-exchange reporting obligations, and perceived access to capital. Where feasible, companies should resolve or narrow outstanding disputes before going public, or at a minimum, develop a well-defined strategy for managing them. Clear documentation, consistent internal narratives, and thoughtful disclosure can help mitigate risk and support a smoother diligence and IPO process.

8. Prioritize Data Security and Patient Privacy: Data security and privacy are increasingly central to a company’s risk profile, particularly those that rely on digital health platforms, connected devices, or data-driven insights. Underwriters, investors, and regulators alike are focused not only on whether companies comply with applicable laws, but also on how they operationalize data governance. Medtech companies should take a comprehensive view of their data lifecycle—how data is collected, processed, stored, transferred, and ultimately disposed of—and assess whether their practices align with applicable legal frameworks and best practices. This analysis may extend beyond formal policies to include vendor management, cross-border data transfers, de-identification practices, and the use of data in product development and commercialization. This will likely be a focal point of IPO due diligence, and it is best to be prepared in advance rather than trying to repair the plane during takeoff.

Equally important is the company’s preparedness to respond to a data incident. A well-developed incident-response plan—integrated with legal, compliance, and communications functions—can reduce regulatory exposure and reputational harm from a data breach. There have been multiple instances of advanced cyberattacks that are purposely timed on the eve of an IPO roadshow to maximize disruption. The ability to demonstrate a mature, defensible approach to data security and privacy can be a differentiator in diligence.  

Protect Innovations Before Ringing the Bell

The current medtech IPO market presents new opportunities for companies seeking access to public capital. However, investors appear to be far more selective than in previous market cycles. Medtech companies must demonstrate not only innovative technology but also disciplined execution, clear regulatory pathways, and defensible competitive advantages.

IP remains one of the most important drivers of long-term value. A strategic IP portfolio can strengthen investor confidence, protect innovation, and position companies for sustained growth after going public. For medtech innovators preparing for the public markets, developing a comprehensive IP strategy may ultimately be one of the most important steps toward a successful IPO.

MORE FROM GREENBERG TRAURIG: How Smart Business Leaders Prepare for a Patent Fight

Michael J. Minahan is a shareholder in Greenberg Traurig’s Corporate and Capital Markets practice groups. He advises late-stage private and public companies, as well as investment banks and venture capital firms, in a full range of general corporate and securities matters, including IPOs and SPAC transactions. Minahan has led numerous IPOs over more than 20 years, representing both issuers and underwriters, as well as follow-on offerings, and convertible note transactions, for both U.S. companies and foreign private issuers. He can be reached at [email protected].

David J. Dykeman is co-managing shareholder of Greenberg Traurig’s Boston office and co-chairs the firm’s global Life Sciences & Medical Technology Group. A registered patent attorney with more than 25 years of experience in patent and IP law, he focuses on securing worldwide IP protection and related business strategy for high-tech clients, with particular experience in life sciences, medical devices, robotics, materials, and information technology. Dykeman provides strategic patent portfolio development and IP advice for clients. He can be reached at [email protected].