Device/Diagnostics Quarterly Deal-Making Statistics, Q1 2018

First quarter device financing came in at $7.6 billion, nearly three times the $2.6 billion brought in during Q4 2017. This staggering total is mostly due to diversified German firm Siemens AG's spin-off of its medical equipment unit Siemens Healthineers AG (aka Siemens Healthcare GMBH) through a $5.2 billion initial public offering on the Frankfurt Stock Exchange [See Deal]. This transaction alone made up more than two-thirds of the aggregate Q1 financing dollars. (See Exhibit 1.) In its March IPO, Siemens Healthineers sold 150 million shares (including full exercise of the over-allotment option) at $34.44, the mid-point of its anticipated price range. With a portfolio that includes CT, MR, molecular imaging, x-ray, and ultrasound, the imaging business accounted for more than half of Healthineers' 2017 sales of €13.8 billion (about 16.6% of Siemens AG's total). Bringing in just under a third of Healthineers' revenues is its diagnostics segment, which offers immunoassays, hemostasis, hematology, blood gas, urinalysis, molecular virology, and liquid biopsy products. The spin-off's purpose is to focus on precision medicine and its core strengths in imaging and lab diagnostics. Also see "Siemens Healthineers Floats On Frankfurt Stock Exchange" - Medtech Insight, 15 March, 2018.

The deal marks not only the top European device listing, but also the largest known device IPO globally overall. Half...