Private Device Companies Step-Up to the Public Market

01 Sep 2004

• By Hazel Dawson

Encouraged by successes in the biotech space, public market investors' interest in the device arena has returned in 2004 to support 10 companies' IPOs so far. Windhover's analysis of the valuations achieved indicate that private investors in these companies have, on average, enjoyed larger returns than their biotech counterparts.

In recent years, there has been virtually no IPO activity in the medical device arena; the only viable exit option for private investors was trade sale. Yet while M&A activity remains strong, 2004 has witnessed a rekindling of public investor interest in the sector.

Perhaps encouraged by successes in the biotech space, where companies like Eyetech Pharmaceuticals Inc. and Pharmion Corp. among...