After a prolonged downturn, the med-tech IPO market rebounded in 2025, with deal value surging to $13.01 billion across 31 offerings. The recovery followed two muted years, with just $619 million raised in 2024 and a low-point of $110 million in 2023.

Med-tech companies looking for capital will have to work harder this year to attract investor attention. Even though investment firms have money to deploy, the capital will go toward more targeted opportunities and later-stage companies. For early stage med tech, 2026 is expected to be a tough year, which is raising concerns about the pipeline of innovative technologies in the long term.

The pressure to replace animal testing with human-relevant assays that are more predictive of human-drug responses has now reached a tipping point, and there is a movement toward greater acceptance of these potentially more translatable tests.

After closing an oversubscribed $85 million series B round, Quantx Biosciences Inc. is gearing up to begin clinical trials of its two lead immunology compounds, a STAT6 oral small-molecule inhibitor and an IL-17 oral small-molecule inhibitor.

Bridgebio Pharma Inc. kept the phase III wins coming, this time with positive top-line results from Propel 3, the global phase III pivotal study of oral infigratinib, designed to inhibit FGFR3 signaling in children with achondroplasia.