Thirty-six financings brought in $1.2 billion during 2013’s fourth quarter, almost double Q3’s $644 million total, making it the most lucrative quarter of 2013. The majority (63%) of Q4’s dollars came in from public offerings. (See Exhibit 1.) This marks a big switch from last quarter, when 50% of the financing dollars came from late-stage venture rounds. (In Q2 late-stage private placements accounted for most of the financing dollars as well.) The fourth quarter is also the only one in which public offerings made up the majority. The total device financing for all of 2013 was $4 billion. (See Exhibit 2.) There was a steep increase in follow-on offering dollar volume, which reached $393 million in Q4, versus the $61 million in FOPO dollars in the third quarter. Integra LifeSciences Holdings Corp.’s $133 million November deal [See Deal] led that group, and the company may use some of the proceeds to fund its $235 million October acquisition of Covidien Ltd.’s now-defunct Confluent Surgical division’s sealants and adhesion barrier products [See Deal].
Device/Diagnostics Quarterly Deal Statistics, Q4 2013
A look at financing, M&A, and alliance activity, October–December 2013
Device companies finished 2013 strong, raising $1.2 billion in Q4, the highest quarter total of the year. CVS Caremark’s $2.1 billion buy of Apria’s infusion therapy business was the largest M&A of the year, and late-stage venture rounds dominated the $423 million total in diagnostics funding.