Medtech IPO Window Shows Signs of Opening After Three-Year Drought

After a three-year drought in initial public offerings (IPOs) for medical device companies, recent activity suggests the window may be cracking open for medtech firms looking to go public. However, industry experts remain divided on whether 2025 will truly mark a resurgence in medtech IPOs amid ongoing economic volatility.

Recent IPO Activity Breaks the Drought

The medtech IPO landscape saw a flurry of activity in late 2024 and early 2025, breaking a three-year period of inactivity:

• Ceribell, a neurological diagnostics company, raised over $207 million in its October 2024 IPO
• Anteris Technologies, a heart valve developer, raised nearly $89 million in December 2024
• Diabetes tech firm Beta Bionics raised about $212 million in January 2025
• Kestra Medical raised $202 million in its March 2025 public offering

This burst of IPOs has prompted speculation about whether the medtech industry is poised for another IPO boom similar to 2021, when 51 companies went public.

Mixed Outlook from Industry Experts

Industry analysts and executives offer differing perspectives on the current IPO climate:

John Babitt, a partner with EY, expressed optimism: "If the window is open in the second half of '25 ... we'll see a decent amount of medtech IPOs." Babitt noted EY is already working with several companies planning to go public.

However, Aaron DeGagne, a senior healthcare analyst with PitchBook, was more cautious: "We could see some additional listings here and there. But I think a lot of companies are still comfortable kind of waiting on the sidelines for now."

Ceribell CFO Scott Blumberg highlighted the high quality of potential IPO candidates: "Because the gap in IPO activity was so prolonged — just over three years — the quality of most mature medical device companies is extremely high. There are multiple medical device companies with profiles that should make them excellent IPO candidates, potentially even in a turbulent market."

Economic Volatility Complicates IPO Decisions

The uncertain economic environment, particularly following President Donald Trump's recent tariff policies, has complicated the IPO landscape. Companies that went public in late 2024 and early 2025 have seen their stock prices struggle amid macroeconomic turbulence.

Beta Bionics CEO Sean Saint described the challenges of being newly public: "There's a lack of control that's frustrating. The market moves, and all of a sudden, our stock moves for zero reason associated with anything with Beta Bionics."

Despite these challenges, Babitt reported that companies working with EY have not cancelled planned IPOs due to recent volatility. The easing of U.S.-China trade tensions and a rebounding stock market could create a more stable environment for IPOs in the latter half of 2025.

Looking Ahead: Potential IPO Candidates

Several companies are being watched as potential IPO candidates in the near future:

• Medline Industries is rumored to be considering going public
• HeartFlow, which develops AI for coronary artery disease diagnosis, is another potential IPO candidate
• Medtronic announced plans to spin off its diabetes business into a separate public company within the next 18 months

As the medtech industry navigates this tentative reopening of the IPO window, companies will need to carefully weigh the benefits of going public against the challenges of market volatility and increased scrutiny. The coming months will likely provide clearer indications of whether 2025 truly marks the beginning of a new era for medtech IPOs.