Q2 showed a decrease in OEM transactions and private financings, but the bright spot was the increase in the number of contract manufacturing transactions compared to Q1. There were some notable transactions, including the spinout of assets from Olympus and BD, and interesting financings in orthopedics, including Onkos Surgical. England completed two transactions this quarter, even given the macroeconomic headwinds.
Market indicators were generally positive in Q4 2022, despite recession concerns. The number of financings, OEM M&A transactions, and CMO M&A transactions increased to highs for the year. Additionally, disclosed value for these deals remained substantial in the case of OEM M&A hitting a new high. Public market returns were mostly negative but improved relative to Q3, with two verticals -CMO and Organ & Tissue Transplant -showing positive returns. CMOs were a clear winner in Q4, doubling in the number of M&A transactions relative to Q3.
The effects of the market-wide contraction continued to be seen across multiple metrics in Q3 2022. Public market returns were again negative across all verticals, with the best performing sector of large diversified still down 11.9% for the year. Most sectors again underperformed the S&P 500, though Spine Orthopedics, CMOs, Large Diversified, and Lab Diagnostics exceeded the index. OEM M&A transaction activity was down relative to Q2 2022 and Q3 2021, while CMO M&A remained flat versus Q2 2022, at a level down significantly versus prior year numbers. Private financings rose for the quarter after over a year of declines. OEM disclosed value increased slightly but did not approach the highs of 2020 or 2021.
The effects of the market-wide contraction were seen across multiple metrics in Q2 2022. Public market returns were negative across all verticals, with valuations falling sharply. Most sectors, with the exception oflab diagnostics, infection control & reprocessing, and large diversified, underperformed the S&P 500. CMO M&A transaction activity was down, as were private financings and OEM disclosed value. The number of OEM M&A transactions, however, did manage to increase despite market concerns.
M&A transaction activity levels dropped for both OEMs and CMOs in Q1 2022, showing initial signs of a broader industry decline. Poor returns in the public market supported this move toward contraction, with the main remaining source of strength coming from continued elevated financing. Almost two thirds of our tracked sectors in the medical devices category witnessed lowerstock price momentum versus the S&P 500, signaling a broader market downturn. Multiple sectors still outperformed, however, including infection control & reprocessing, lab diagnostics, and ENT & respiratory.
Following the trend of the last few quarters, the medical device sector still demonstrated high levels of M&A and financing activity in Q4, despite a downtick from the previous year. Less than half of our tracked sectors in the medical device space witnessed positive stock price momentum versus the S&P 500, signaling an industry correction from the pandemic highs. Multiple sectors still outperformed, however, including aesthetics, lab diagnostics, and radiation therapy. Transaction levels indicated a high degree of stability, tracking roughly with Q3.
The medical device sector demonstrated sustained high levels of M&A and financing activity in Q3. Over two thirds of our tracked sectors in the medical device space witnessed positive stock price momentum versus the S&P 500, further demonstrating positive sector trajectory and outlook. Discussions with numerous strategic acquirers and private companies during the quarter and particularly following Labor Day, indicated that despite the Delta surge, there were a large number of assets on the market and buyer M&A teams are very busy and actively looking at several potential acquisitions on average.
The medical device sector demonstrated sustained levels of activity as seen through the continued robust M&A and financing activity in Q2. Over three quarters of our tracked sectors in the medical device space witnessed positive stock price momentum versus the S&P 500, further exemplifying prosperous sector performance and trajectory.