Financing: Q3 Roundup Shows Fall In Device Company Activity But A Rise In IVDs

A look at financing activity across the medical device and in vitro diagnostics industries, July-September 2020

During the third quarter, device company fundraising totaled $3.3bn; while in vitro diagnostic firms and research tools players raised $3.4bn.

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Third-quarter device financing activity reached $3.3bn, a significant drop from Q2’s $9.5bn, although 45% of the Q2 dollars can be attributed to two billion-dollar plus transactions: Stryker Corporation's $2.28bn senior notes offering and Boston Scientific Corporation’s $1.95bn follow-on public offering (FOPO). The venture capital funding category made up the most (36%; with early- and late-stage categories making up 20% and 16%, respectively), followed by IPOs, which accounted for $886m, or 27%, of the Q3 total (see Exhibit 1).

Q3 venture rounds together totaled $1.2bn, more than doubling Q2’s $578m total. A $137m series B financing by Preventice...

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