Medical technology financing trends, 2009-2012

Medtech financings for August 2012 totaled over $600 million (thanks in no small part to the $100 million Globus Medical IPO).

In looking at how this clear high point in 2012 fundings compares to past years for medtech, I examined the month-by-month data (detailed in link) and applied a 3-month rolling average to smooth out the volatility:

Source: Compiled by MedMarket Diligence, LLC

This shows a fairly regular, seasonal pattern in which there is a low point in fundings in the mid- to late-spring and a high point in mid- to late-summer (or early fall).  We are now clearly in the midst of the 2012 high point, with the likely highest month being August, and if the usual trend occurs the funding levels will decline through year end.

What also seems apparent is that fundings are off in 2012 after a strong 2011, but consistently above 2010 levels.  The optimism of 2011, following difficult financial conditions of the recession largely initiated in 2008, led to a more modest picture in 2012.  My predition is that we should see an even stronger 2013, rivaling fundings of 2011.

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