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The health technology sector has seen extraordinary enthusiasm among private and public investors this year. In 2021, investments have so far totaled $23.8 billion, nearly tripling 2019’s tally, according to a Deloitte analysis. And more than two dozen companies began trading on public markets, capitalizing on sky-high valuations and the continuing popularity of the blank-check IPO.

But cracks are beginning to show in the industry’s foundation, including those companies whose performance is now subject to the scrutiny of public investors. Among health tech companies that went public in 2021 — both through SPAC mergers and traditional IPOs — stock prices have fallen an average of roughly 45% since the close of their first day of trading.

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