Medtech IPO Window Shows Signs of Opening, but Economic Uncertainties Linger

After a three-year drought in initial public offerings (IPOs) for the medical device industry, recent activity suggests a potential resurgence. However, economic volatility under the Trump administration has complicated the landscape for companies considering going public.

Recent IPO Activity Breaks the Drought

The medical device industry has seen a small burst of IPO activity in recent months, breaking a three-year dry spell. Ceribell, a company developing technology for diagnosing neurological disorders, led the charge in October 2024, raising over $207 million. This was followed by Anteris Technologies, a heart valve developer, which raised nearly $89 million in December. Diabetes tech firm Beta Bionics raised about $212 million in January 2025, and Kestra Medical followed with a $202 million offering in March.

This flurry of activity has prompted speculation about whether the industry is entering a new IPO moment, reminiscent of the spike seen in 2021 when there were 51 IPOs, up from 24 the previous year.

Economic Volatility Complicates IPO Decisions

While the recent public offerings could inspire other companies to follow suit, the volatile economic environment under the Trump administration has added complexity to the decision-making process. Tensions with China and uncertainty surrounding tariff strategies have led to significant market fluctuations, impacting newly public companies.

Ceribell CFO Scott Blumberg noted, "Depending on how things play out, some of these companies may elect to wait for calmer markets." The lack of control over market dynamics once public has been a source of frustration for some companies. Beta Bionics CEO Sean Saint explained, "The market moves, and all of a sudden, our stock moves for zero reason associated with anything with Beta Bionics."

Future Outlook Remains Uncertain

Opinions are divided on whether 2025 will see a significant uptick in medtech IPOs. John Babitt, a partner with EY, is optimistic about the second half of the year, stating, "If the window is open in the second half of '25 ... we'll see a decent amount of medtech IPOs." However, Aaron DeGagne, a senior healthcare analyst with PitchBook, believes many companies may still prefer to wait on the sidelines.

The industry is closely watching potential IPOs from companies like Medline Industries and Heart Flow. Additionally, Medtronic has announced plans to spin off its diabetes business through an IPO within the next 18 months.

As the market continues to evolve and companies navigate the complex landscape of going public, the medtech IPO window remains ajar, with both opportunities and challenges on the horizon.