Device/Diagnostics Quarterly Deal Statistics, Q1 2016

08 Jun 2016

• By Amanda Micklus and Maureen Riordan

Device companies raised 50% more in Q1 2016 than the previous quarter, reaching $1.8 billion and led by debt offerings; diagnostic imaging acquisitions, such as Toshiba Medical Systems, were abundant. Diagnostics financings double in Q1, mostly from venture funding, including strong showing from liquid biopsy companies.

During the first quarter of 2016, device companies raised an aggregate $1.8 billion in financing, a 50% increase over last quarter's $1.2 billion. Debt was the top financing vehicle, accounting for $1 billion from six deals, or 56% of the total Q1 device financing total. (See Exhibit 1.) This is the first time debt has led since Q2 2011 when eight transactions together totaling $767 million made up 45% of the quarter's money raised.

Two large debt raises from qualified institutional investors made up the vast majority (91%) of the aggregate within the category...