Our review of last year’s device and diagnostics dealmaking reveals optimism in the public markets: 2018 saw the highest aggregate deal value in IPOs since 2015. That wasn’t the case in mergers and acquisitions, where the number of deals remained steady but valuations declined.
For the past couple of years, the idea of a US medtech/diagnostic public market has been just that—an unrealized hope. Despite quarter after quarter of promising signs, the US IPO window remained basically closed to device and diagnostic companies. That inactivity continued through the first quarter of this year, but Q2 brought several deals and prompted increased optimism that the public market would once again be open to medtech offerings.