US Life Sciences IPOs Revive with Medtech Companies Leading the Way

Medical technology companies are leading the revival of initial public offerings (IPOs) in the US life sciences sector. Shoulder Innovations Inc. and Carlsmed Inc. have recently gone public, raising up to $105 million and $100 million, respectively. The offerings follow IPOs by Kestra Medical Technologies, Beta Bionics, and Ceribell. The medical technology sector is attracting investors due to its de-risked nature and high growth potential. Despite a tough year for life sciences IPOs, the revival of medical technology offerings signals a positive trend.

Medical technology companies are leading the revival of initial public offerings (IPOs) in the US life sciences sector. Shoulder Innovations Inc. and Carlsmed Inc. have recently gone public, raising up to $105 million and $100 million, respectively. The offerings follow IPOs by Kestra Medical Technologies, Beta Bionics, and Ceribell. The medical technology sector is attracting investors due to its de-risked nature and high growth potential. Despite a tough year for life sciences IPOs, the revival of medical technology offerings signals a positive trend.

The sector has been bolstered by the recent IPOs of Shoulder Innovations Inc. and Carlsmed Inc. Shoulder Innovations Inc., a commercial-stage shoulder surgery implant maker, is on track to price an IPO raising as much as $105 million [2]. Carlsmed Inc., an AI-driven spine surgery innovator, priced its IPO at $15 per share, raising $100.5 million and establishing a post-IPO market capitalization of $397.7 million [3].

These IPOs follow the recent debuts of Kestra Medical Technologies Ltd., Beta Bionics Inc., and Ceribell Inc. All three companies posted tidy day-one gains but now trade below their IPO prices. The offerings mark a rebound within the US life sciences niche, following a year of regulatory uncertainty that has hampered IPO activity [2].

Medical technology companies are particularly appealing to investors because they usually generate revenue from approved products, unlike biotechnology companies whose prospects rest heavily on trial results for unapproved drugs. "Investors are comfortable looking at those and saying some of these stories have been de-risked and we’re getting an opportunity to buy high-growth companies with less risk," said Seth Rubin, head of global equity capital markets at Stifel Financial Corp. [2].

Despite the challenges faced by the sector, such as the shake-up of the FDA by US Health and Human Services Secretary Robert F. Kennedy Jr., medical technology companies are showing resilience. In 2025, only 11 health-care companies raising at least $50 million have gone public in the US, with total proceeds of $2.7 billion. However, this year's tally includes four biotechs, a lean year after 10 in the corresponding period in 2024 [2].

The revival of medical technology IPOs suggests a positive trend in the US life sciences sector. While the sector has faced difficulties, the recent offerings indicate a renewed investor interest in high-growth, de-risked companies. For investors seeking exposure to disruptive medical technology, the question remains whether the current valuation represents a compelling entry point or a cautionary tale of market skepticism.

References:
[1] https://seekingalpha.com/news/4473651-wave-life-sciences-q2-2025-earnings-preview
[2] https://www.bloomberg.com/news/articles/2025-07-29/medtech-ipos-spur-talk-of-broader-us-health-care-listing-revival
[3] https://www.ainvest.com/news/carlsmed-carl-assessing-post-ipo-dip-high-growth-medtech-disruptor-2507/