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Publisher’s note: This is the first story of a two -part series on the IPO Medtech landscape. You can read the second story about how to make a public business here.
When Ceribell became a public in October, the window for the first public offers in Medtech was open just a crack – if not completely closed.
CERIBELL, which develops a technology to diagnose patients with neurological disorders, led to a break in public tenders in a few months, breaking a three -year drought in the IPOs. The new public offers have aroused questions about the question of whether the medical devices industry could have another moment of IPO after a point of 2021.
“At that time, we debated to be potentially the first IPO of the Médan apparatus in a few years,” said Ceribell Scott Blumberg’s financial director in a statement sent by e-mail. “At the start, we, and I think that a certain number of peers experienced a greater attraction to allow another business to take the risk of being the first. In recent history, rapid subscribers had received premium assessments to be the first company to be made public in a window. ”
Aaron Degagne, a main health care analyst at Pitchbook, said that the drop in the IPO of the Medtech industry had followed the subsequent stages of the COVVI-19 pandemic, which had no interest rates and more favorable market, and was pre-inflation. There were 51 IPOs in 2021, compared to 24 years, according to Pitchbook data, which includes investment capital and venture capital.
“But since then it has been quite difficult,” said Degagne. He stressed Tempus A like as one of the few companies to be made public during these years.
Medtech ipos increased in 2021
The number of IPOs on the stock market each year from 2020 to T1 2025
There has been a small explosion of IPOs in a few months since Ceribell became a public at the end of last year, when the company raised more than $ 207 million. Anteris Technologies, a developer from Valve Heart, raised nearly $ 89 million when the company became public in December. The Diabetes technology company Beta Bionics followed in January, collecting around $ 212 million, and Kestra Medical also raised $ 202 million when it was made in March.
The last activity could be a signal that drought in the introduction ends this year, as more and more companies could be ready to test the market.
“Because the gap in the activity of the IPO was so extended – a little over three years – the quality of most mature medical devices companies is extremely high,” said Blumberg. “There are several medical devices companies with profiles that should make them excellent IPO candidates, potentially even on a turbulent market.”
John Babitt, an EY partner, said that “if the window is open in the second half of ’25 … We will see a decent amount of MEDTECH on stock market.”
While companies carefully select the right time for an IPO, recent public offers could also inspire others to follow. In addition, Babitt said there was a long list of $ 100 million in funding in the first quarter of 2025 – a level he did not see during his over 25 years covering the industry – which is another indicator that companies can be ready.
However, a volatile economy, from a short time after the end of President Donald Trump at the end of January, complicates the moment. While tensions have recently hidden with an American chinese agreement to reduce prices for 90 days, the uncertain economic environment could influence business decisions.
Blumberg, who answered questions from Medtech Dive in April during the economic decline, said that some companies could decide to wait.
“Depending on the way things take place, some of these companies can choose to wait for quieter markets,” said Blumberg. “I have no doubt that they will have many financing possibilities and this is only a matter of time before seeing a new class of very high quality public medical devices.”
Lack of control
Companies generally make it public as a means of paying private investors and collecting funds after demonstrating fundamental financial solids. It is not a simple decision to make, however – becoming a public is a long and difficult process that can take the best part of the year, requires dozens of meetings with potential banks and investors, and should only occur when a company has the right finance and leadership team.
CERIBELL first decided to continue an IPO in 2024 – approximately nine months before the date of IPO – after having prepared about three years.
Babitt said one of the key factors for companies is to have reliable visibility in their income sources, and must demonstrate this visibility for institutional investors, as well as an execution rate of $ 50 million. Companies that do not have good visibility on income tend to fight once public, he added, which has been the case for certain companies in the 2021 IPO.
Companies that had $ 30 million or 40 million dollars in sales but which had no visibility and could not increase two -digit income in a quarter were “punished, frankly,” said Babitt, who did not appoint specific companies.
One of the biggest challenges after being made public, as well as forecasts and the supply of growth each quarter, is to be vulnerable to market dynamics which is largely out of your hands.
“There is a frustrating lack of control,” said Sean Saint, CEO of Beta Bionics. “The market moves, and suddenly, our stock moves for a reason for any reason that is bionic bionic.”
Saint explained that the macroeconomic factors move the stock for a certain number of reasons, including the bionic bionic being a smaller stock, a new entrant to public procurement and investors who do not yet take full positions.
“For these reasons, we have become more volatile than the market as a whole,” he added. “We understand why, but that does not change the fact that we have no control of it.”
Companies that recently held public offers – and have chosen their advertising dates in advance months – quickly learned this lesson. The equity prices for new companies mainly had trouble for a large part of the year, because macroeconomic conditions whipped the US economy under the Trump administration, largely because of its tariff strategy.
Ceribell, Beta Bionics and Anteris have all seen their courses of shares decrease at the end of March and April when pricing tensions were high.
The lack of control, said Babitt, which is why “you want high quality candidates from any sector there, so that their history has really not changed; Their income profile has really not changed. ”
New Medtech actions have mostly struggled
Closing of the equity prices for Kestra Medical, Ceribell, Beta Bionics and Anteris Technologies from October 10, 2024 to May 27.
Babitt said that companies working with EY have not decided to cancel their IPOs planned due to recent volatility.
The question of whether the IPO window in the medical devices is open to a complicated response. The four public offers in as many months could be a sign that more companies are ready – the IPOs themselves could also inspire activity. Or companies could delay to let the economy be satisfied a little longer.
The long calendar of a public offer could also indicate that companies that provided in January, or during the first quarter, to go in public will not start to sell shares in 2026, whatever the economic conditions.
The degree of Pitchbook said that 2025 will probably not be the time IPO that others believe it could be. According to rumors, Medline Industries will seek to become public in the near future, a company of Digabre looks, as well as the heart flow, which develops artificial intelligence for coronary disease.
Medtronic also announced that it was planning to put away its diabetes activities and make public enterprise in a stock exchange in the next 18 months.
“We could see additional lists here and there. But I think a lot of companies are still comfortable waiting for the sidelines for the moment,” said Degagne.
Babitt sees it differently. EY has already worked with several companies that plan to make public. Kestra and Beta Bionics also increased their expectations at the last minute. For example, Beta Bionics was causing to raise around $ 114 million, but finally raised more than $ 200 million.
“Everyone has taken note,” said Babitt.
An introductory window on the stock market needs a stable market to stay open, otherwise good candidates will wait or could even pursue other ways such as mergers and acquisitions. While pricing tensions are relaxing with China and the stock market market rebounds, this moment could be there.
“I am optimistic with the second half,” said Babitt.
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