Highlights from the Q2 2009 review of medical device and in vitro diagnostics/research dealmaking: Financings by medical device companies jumped an impressive 62% over Q1 to $847 million--primarily from private VC rounds that contributed over 90% of the total deal volume with 52 early- and late-stage transactions--indicating a possible rebound in fundraising. Medical device M&As, on the other hand, proved to be a disappointment with only ten deals raising $794 million, most of which was Covidien's $470 million cash purchase of Vnus Medical. Although there were no big mergers, some device firms instead turned to the strategic alliance as a way to gain inexpensive products and technologies. On the in vitro diagnostics/research side, financing activity captured over three times the previous quarter's dollars through 12 deals totaling $302 million, however, almost 80% of that amount was from Beckman Coulter's $239 million FOPO. VC rounds only averaged $6 million apiece, with early- and late-stage rounds together bringing in $43 million. M&A in this industry segment was almost non-existent with only two transactions adding up to $358 million, a mere third of Q1 M&A deal volume.

The global recession that struck last September drove many device investors into hiding. This left a barren financial landscape for device companies to subsist on. But some are finding the funds they need, and they're sharing their survival stories.

Highlights from the Q2 2009 review of medical device and in vitro diagnostics/research dealmaking: Financings by medical device companies jumped an impressive 62% over Q1 to $847 million--primarily from private VC rounds that contributed over 90% of the total deal volume with 52 early- and late-stage transactions--indicating a possible rebound in fundraising. Medical device M&As, on the other hand, proved to be a disappointment with only ten deals raising $794 million, most of which was Covidien's $470 million cash purchase of Vnus Medical. Although there were no big mergers, some device firms instead turned to the strategic alliance as a way to gain inexpensive products and technologies. On the in vitro diagnostics/research side, financing activity captured over three times the previous quarter's dollars through 12 deals totaling $302 million, however, almost 80% of that amount was from Beckman Coulter's $239 million FOPO. VC rounds only averaged $6 million apiece, with early- and late-stage rounds together bringing in $43 million. M&A in this industry segment was almost non-existent with only two transactions adding up to $358 million, a mere third of Q1 M&A deal volume.