Biotech IPO slowdown ignites medical device IPOs. Overall Life Science IPOs have Quadrupled by Q1, 2014

Life Science IPO boom extends to outside US market: Australia and Singapore. Biotech IPO slowdown ignites medical device IPOs overall Life Science IPOs have Quadrupled.
Medical device-maker QT Vascular priced its initial public offering (IPO) to raise S$55 million for product development and working capital. The deal will value the loss-making company at S$211.6 million upon listing. The all-new share offering will raise net proceeds of S$50.3 million for QT, which specializes in balloon catheters.
Venture-capital investment in medical devices grew 28%, the number of deals was down 37%. Despite the dip, biotech still managed to carve out a large part of venture-capital in New York's tech scene during the quarter.
"There are fewer companies attracting a large amount of capital," said Dr. James Healy, a general partner at Sofinnova Ventures, a venture capital fund.
Less venture capital financing is also partly a consequence of the public market's success—the number of biotechnology IPOs has quadrupled since 2012. Even early stage start ups are now attractive targets for IPO. Obesity and diabetes technologies will be hot IPOs to pursue.
"Not just specialists, but even generalist investors have started to participate in IPOs," Dr. Healy said.
The silver lining is that the deals that do happen have increased in size. And they're increasingly coming to New York—one the fastest-growing areas for med device, biotech venture capital. "There's been a large increase both in the amount of capital managed by fund managers that are based in [and around New York], and in the number of companies based there," Dr. Healy said.
That volume of capital was apparent in the first quarter. Although only nine New York-based biotech companies received investment, the overall amount of that investment totaled roughly $180.3 million.
Med device companies have a predictable outcome and this attribute makes it very attractive for investors. Traditionally, VCs ruled this space, now the secret is out, private and institutional investors hedge fund mgrs are taking advantage of this sector and taking companies public.

Medical devices treating hypertension mixing arterial and venous blood: A hopeless dream

Medical devices treating hypertension mixing arterial and venous blood: A hopeless dream

 

Successful treatment of hypertension is difficult despite the availability of several classes of antihypertensive drug, and the value of strategies to combat the effect of adverse lifestyle behaviors on blood pressure. I have made an effort to showcase my ideas on the chronic hypertension. There are 3 categories that need to be understood before treating these patients.

1)      patients who are non-compliant to drug ( who do not take drugs regularly, when taken the drug works and hypertension is controlled)

2)      Patients who take the drug but the drug effects have worn out ( when medications are changed they respond)

3)      Patients who do not respond to any treatment. ( approx 1in 20 are non –respondent)

The market for all three catagories is $2 B.

Mistakes made earlier by large med device companies was to acquire the technologies without accessing the true market. 

In my opinion there are two promising treatments to explore: 1) new pharmacological classes (such as vasopeptidase inhibitors and aldosterone synthase inhibitors) and new molecules from present pharmacological classes with additional properties in blood-pressure or metabolism pathways 2) stimulation of arterial baroreceptors and catheter-based renal denervation.

And, there are others that are dreaming to show some hand waving results.  I have interviewed patients in clinical trials and have seen patients suffering. One of the worst technologies is mixing arterial blood to venous blood using a shunt that connect femoral vein to artery. One expert physician said, "The patient has chance of Right Heart Failure, swollen legs, bleeding during procedure, tons of other issues". Obviously, if you convert a high pressure arterial flow and divert it to the veins there will be a obvious pressure drop. But, in return patients potentially suffer all the problems of venous stasis, fatigue, right heart enlargement  my suggestion to the participants of the clinical trials, guys just take your medicines on time , you will not suffer with these experimental devices.  It’s a waste of time, money and effort. Worst of all is the suffering.  Once a mobile patients may be dealing with a arterial/venous mis-match. swollen legs and heart failure". Overcoming hypertension is a dream for these device makers, but it’s a Nightmare! for patients.

Bucking Trends on Medical Device IPOs : 2014

Bucking Trends on Medical Device IPOs : 2014

Focus is now on medical device IPOs. The pharma and biotech sectors continue to be strong. The medical device sector is the new hot trend with early medical device companies filing IPO.
Sectors : Orthopedic& Spine, Obesity and Diabetes, cardiovascular, opthalmology and some diagnostics.
Biomet filed in March
GiDynamics public on Australian StockEx
Lombard, Cardiovasular device maker filed in April 2014
Presbia a lens maker from Irvine, in April 2014
Trivasuclar from Ca.
The first Q of 2014 is starting to show indications of pre-revenue and even early stage companies planning to go IPO.
Other publicly traded companies like:

Urologix (ULGX), EDAP, Inspire MD (NSPR), Insulet Corp (PODD) are worth to obeserve.

It appears more early stage medical device companies will be exploring to go public.
Irvine, Ca and So California has become hub for medical device makers in the ophthalmology, obesity, cardiovascular, spine/orhto technologies
It seems private and institutional investors are starting to explore investment opportunities in the region, contemplating more healthcare investor conferences . VCs exploring opening offices in addition to their Bay area offices to take advantage of the emerging trend.
Allergan(AGN) Mosimo, Endologix, Applied Medical, Edwards life sciences, Medtronic, AMO, Alcon, J&J have divisions in Irvine Ca.

Prediction on Medical Device IPOs

By 2016 IBs will be scrambling to get the attention of medical device CEOs.
The IPOs surge for med tech companies has just started it may not be a trend yet but can become a trend very soon, Presbia has a CE mark. Companies like Trivascular, Lumenis, Lombard medical, are just examples in the Q1 of 2014. Kips bay medical is an early stage medical device now public, company like Dario is targeting diabetes monitoring, we may see very early stage IPOs with solutions to humongous markets (no pun intended) like diabetes and obesity
Institutional investors, private buy side investors are now realizing Med device is a good opportunity, this is low investment, quick exit sector and can make more on the upside of milestones. VCs are discouraging IPOs because they will lose the opportunity to dominate this sector. They already lost biotech and pharma sectors