Cutera's IPO: Will Others Follow?

In the first four-plus months of 2004, there have been two medical device IPOs, compared to zero last year. Yet while a couple of companies does not a trend make, nevertheless, five more device hopefuls in the queue are cautiously optimistic that public investors are beginning to back at least certain kinds of medical device companies. But which kinds? Cutera Inc. raised $45.6 million in its IPO the last day of March [W#200430257]. You could say that the company has made a strong start in an enormous, underpenetrated device market, and one that doesn't suffer from reimbursement risk-the consumer market for cosmetic procedures. But Cutera isn't just a story stock; it's a company with a record of predictably ramping up sales and earnings.