Article preview from Start-Up - September 2008
Find out why a growing number of medical device companies that managed to go public over the past few years are finding their market capitalizations slipping away.
Article preview from Start-Up - September 2008
The arrival of September marks the beginning of the season. We begin to analyze and debate the gap between The Rich and The Poor; the Haves and The Have Nots. But in this particular instance we're not thinking about the election of a new president, but rather the possibility of medical device companies going public.
Let's be frank. Things don't look good for device firms or their investors. Investment bankers aren't holding out a great deal of hope that the window for these companies will open up anytime this year. (See "Thriving When the Device IPO Window Closes," IN VIVO, July 2008.) Sam Navarro, managing director at Cowen & Co., says medical device companies with more than $50 million in revenue will be reviewed on a case-by-case basis. But all others likely will need to wait until the macro-economic uncertainties begin to clear up. Similarly, Michael J. Neuberger, managing director at Jefferies & Co. Inc., outlined a list of 10 things that must happen for the IPO window to reopen. The list starts with falling oil prices and a stronger dollar and works through the credit crisis, stronger corporate earnings, improved market sentiment, and so on. (See "Venture Round: An IPO To Do List," The IN VIVO Blog, July 25, 2008.)
Of course, the value of comparables come into play as well. And this is where the news for those device players with an eye toward the public market remains discouraging.
Purchase this 697-word article online as a PDF for just $35 and receive it immediately via email.
Subscribe to START-UP. Questions? Call (800) 332-2181. 100% Satisfaction Guaranteed
Companies mentioned in this article:
Acclarent Inc.
Baxter International Inc.
Boston Scientific Corp.
Medtronic Inc.
Restore Medical Inc.
Smith & Nephew PLC
Stryker Corp.
VNUS Medical Technologies Inc.
Zimmer Holdings Inc.
START-UP: No publication reviews leading edge companies and technology better than START-UP. Each issue of START-UP profiles the most important new product companies, identifies the hottest technology areas, reviews funds flowing into private companies and investment trends, and reports on university tech transfer licensing. Industries covered: pharmaceuticals, biotechnology, medical equipment & devices, and in vitro diagnostics. Subscribe to START-UP.
