Upcoming Medical Device IPOs Indicate Growing Interest in Health Tech
Global, Monday, 20 January 2025.
Kestra Medical Technologies and Heartflow plan IPOs in 2025, signaling a revival in health tech listings after years of low activity.
Breaking the IPO Drought
After a prolonged period of stagnation where only four U.S. medical device manufacturers went public in nearly three years [1], the healthcare technology sector is showing signs of revival. Both Kestra Medical Technologies and Heartflow have hired advisers and are targeting Initial Public Offerings (IPOs) in the first half of 2025 [1][5], marking a potential turning point in the medical device industry’s public market participation.
Innovative Technologies Driving Market Interest
Kestra Medical Technologies, which successfully raised $196 million in funding during July 2024 [1], is garnering attention with its innovative wearable monitoring and defibrillation devices designed for ventricular arrhythmia [1]. Meanwhile, Heartflow, which previously canceled a SPAC listing in 2022 that would have valued it at $2.8 billion [1], has developed sophisticated technology for diagnosing coronary artery disease [1]. These companies represent the cutting edge of medical device innovation, offering solutions that could transform patient care [GPT].
Market Timing and Private Equity Dynamics
The timing of these IPO plans coincides with evolving market conditions. As noted by Arnaud Blanchard, global co-head of equity capital markets for Morgan Stanley, ‘Sponsors know it may take a while to complete a full exit, so they are becoming active now, early in the cycle’ [1]. This strategic timing follows a challenging period where private equity firms struggled with exits due to high interest rates and market volatility [1][5].
Broader Market Implications
These planned IPOs are occurring against a backdrop of significant changes in the global listings landscape. While medical device companies are showing renewed interest in public offerings, other sectors are also seeing increased activity. For instance, eToro Europe Ltd recently filed for a US IPO targeting a $5 billion valuation [5], indicating a broader market appetite for new listings. This surge in medical device IPOs could potentially catalyze further healthcare technology listings [GPT].