Investors love to remind everyone that IPOs are financing events, not exiting events, using the mantra to put off Judgment Day for their investments. So how have device companies fared after the recent spate of IPOs?

Despite orthopedic surgeons' conservative reputation when it comes to new technology adoption, high-tech devices are increasingly finding a place in this field. There have been recent developments in robotic computer-assisted surgery and other high-tech enabling tools that could lead to wider acceptance of these devices by surgeons better known in the past for eschewing such "frills." Although there are exceptions, most manufacturers seeking success in this market appear to have learned from the mistakes of the past, and many, instead of offering technology for technology's sake, are now trying to provide surgeons with what they really want - products that offer a value-added benefit to their practice.

Aging baby boomers spell good news for the $11 billion total joint replacement industry. The bad news is the economic burden this highly active population, the major recipients of joint replacement surgeries, will place on the nation's health care system. With the number of TJR procedures expected to soar in the coming years, it's no surprise that CMS is focused on reducing the costs of TJR procedures. And that's bad news for the orthopedic surgeons who perform them.

In this issue, we present another installment of our quarterly review of medical device and in vitro diagnostics/research dealmaking-for July-September 2007. Our data are derived from Windhover's Strategic Transactions Database.