Flurry of Medical Device IPOS Drive High Valuations
March 12, 2014
What do Biomet, Lombard Medical, Trivascular, Lumenis have in common. These companies are  filing IPO.
In January of 2014 we saw investment bankers starting to show interest in pre-revenue and revenue generating  medical device companies exploring IPO opportunity.
Medical device companies have always been sitting on the side lines when it comes to filing IPO, many companies did not use IPO as a source of exit or growth opportunity. Typically, these medical device companies would get acquired by a large strategic players.

More IB are realizing that the medical device sector has a very predictable regulatory path and faster commercialization capabilities than biotech and pharma sector. Medical device market in emerging countries is expanding rapidly. Investors appreciate that the exits in the device sector may not be very large but more predictable and quick. Investors seeing to make a quick buck will follow medical devices, those wanting to wait a decade for a payoff will be pro-biotech.

Today, the momentum of pre-revenue medical device IPO is growing. Sectors that are very hot are obesity , diabetes, sleep apnea, ENT, orthopedics and low cost spine surgery options.

Medical Device Laser Company Lumenis Plans for a $100M IPO

Medical Device Laser Company Lumenis Plans for a $100M IPO

March 8, 2014

Israel's  medical device company Lumenis is one of of many medical device companies to pursue the public markets and is moving ahead with its U.S. IPO plans.

The maker of minimally invasive medical lasers released further details in a recent regulatory filing, noting that it wants to sell 6.3 million shares and raise approximately $100 million.

Lumenis, which also has operations in San Jose, CA, said it anticipates a share price between $15 and $17, and will trade on the Nasdaq under the symbol, "LMNS." The company filed initial IPO plans with the U.S. Securities and Exchange Commission in December.

UK Based Med Device-Diagnostic files IPO: Quotient focuses on Blood Transfusion Diagnostics.

UK Based Med Device-Diagnostic files IPO:  Quotient focuses on Blood Transfusion Diagnostics.
March 8, 2014
Quotient, a U.K. focused on blood transfusion diagnostics, unveiled plans for an initial public offering that would raise as much as $75 million. The move continues a steady trickle of IPO movement among testing companies that began late last fall.
Share pricing and other details aren't out yet, but the company said it would rely on UBS Securities, Cowen & Company and Robert W. Baird & Co. to serve as joint bookrunners for the deal. Plans call for trading on Nasdaq, using the symbol "QTNT," according to the S-1 filing.

Medical Device Maker Biomet files for an IPO

Medical Device Maker Biomet files for an IPO

March 7, 2014

Biomet, a maker of medical devices based in Warsaw, IN, has reportedly filed with U.S. regulators for an IPO nominally valued at $100 million.

Reuters reported the IPO filing, which comes 7 years after the maker of orthopedics was taken private in an $11.4 billion leveraged buyout deal. Goldman Sachs Group, Blackstone Group, KKR & Co. and TPG Capital own 97% of Biomet, according to the report. As of Nov. 30, Biomet still carried $5.9 billion in debt, following that transaction, according to The Wall Street Journal.

The Journal reported in February (sub. req.) that Biomet was talking to bankers about raising up to $1 billion in an IPO. The $100 million figure reported by Reuters and others is a placeholder used to calculate registration fees. The eventual IPO fundraise is likely to be more.

Last year, Biomet was the subject of M&A takeover rumors, with some speculating the company would pursue an IPO as possible leverage in buyout talks. 

Biomet also briefly considered spinning off its dental unit. Then it appeared to head in the opposite direction, diversifying with the October acquisition of Colorado spinal startup Lanx for $150 million. California is hub for new spine device companies.  Acquisition of Lanx has triggered the spine transactions again. Large companies are now looking a low cost spine devices which  have replaced the need for minimally invasive spine surgery. Experts say, surgical outcomes between MIS and open repair are not that different, but the cost is 4 to 6 times conventional treatment.  The outside US market is booming for spine technology and makers of orthopedic companies are looking to purchase spine companies in the US with good technology pre revenue and even pre-FDA.

By January, talk of divestiture appeared to have cooled. The maker of dental implants and hip and knee replacements reported its second-quarter earnings: $4.9 million in profit on $825.7 million in sales--a 4.5% boost to its top line over the year-ago period.

BofA Merrill Lynch, Goldman Sachs and J.P. Morgan are lead underwriters on Biomet's offering, according to Reuters