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Publicly traded healthcare companies in 2022

by Babu Patil
Publicly traded healthcare companies in 2022
  • Here are the publicly traded healthcare companies in 2022
  • Digital health IPO momentum continued to slow from 2021 into 2022, resulting in a considerable decline in both deal numbers and proceeds.
  • With global digital health funding activity almost halved in YTD 2022, the Asian companies recorded the biggest decline.

Heightened volatility caused by inflation fears, ongoing covid pandemic, geopolitical tensions, Russia-Ukraine conflict, macroeconomic factors, regulatory uncertainty, declining valuation, and poor post-IPO share price performance led to the postponement of many IPOs during the year. The dramatic slowdown in IPOs activity in 2022 after a record year in 2021 was experienced in the digital health market.

For 2022, the global digital health IPOs market saw barely two deals raising $500 million in proceeds, a decrease of 90% year-over-year (YoY). Through 2021, there were a total of 20+ IPOs raising $5 billion in proceeds.

The trajectory for this year indicates that overall digital health IPOs will fall short of last year’s as investor confidence is shaken by economic uncertainties, inflation fears, an ongoing pandemic, and the Russia-Ukraine conflict.

M&As

This year also saw a significant decrease in mergers and acquisitions. Nearly 150 companies will successfully exit (through M&A) in 2022, compared to 200+ last year. It is a 25%+ decline. 

Funding

So far this year, healthcare technology startups have raised roughly $10 billion. It is clear that there has been a considerable decline in the amount of investment raised this year. Nearly $20 billion was infused into digital health startups in 2021. This trend indicates that funding will be halved in 2022.

Top Digital health IPOs

Healthcare IT

IMS Health, a TPG Capital Management-backed healthcare information business, went public, valuing the company at about $6.64 billion. The company offered 65 million shares at $20 per share, raising $1.30 billion. CPPIB, Leonard Green & Partners, and TPG took IMS Health private in 2010 for $5.2 billion, including debt. IMS Health provides prescription data to the pharmaceutical industry, medical device manufacturers, government agencies, and other healthcare companies. The company reported operating income of $276 million and revenues of $1.87 billion in the nine months ended September 30, 2013. It has onboarded over 5,000 clients in over 100 countries.

Prescription Drugs

GoodRx – an online prescription drug platform – started trading on Nasdaq after it raised $1.14 billion in its initial public offering. The offering brought GoodRx’s valuation to over $18 billion. The California-based company collects data from over 70,000 pharmacies in the United States to track prescription prices and offers discount coupons. It generates revenue by charging fees to pharmacy benefits managers. In the first six months of 2020, GoodRx generated $257 million in revenue and reported a $55 million net income.

China

JD Health, the healthcare tech unit of JD.com, raised $3.5 billion in a Hong Kong IPO. JD Health issued 381.9 million shares priced at $9.11 per share. The company’s first six-month revenues were $1.34 billion in 2020, up from ~$700 million in the same period last year. JD.com controls 78% of JD Health. 

Ping An Good Doctor, a unit of China’s biggest insurer (Ping An) by market value, started trading on the Hong Kong stock market. The company raised $1.1 billion through the public offering of its 160 million shares at a HK$50.80–$54.80 range. 

Founded in 2014, Ping An Healthcare and Technology, also known as Ping An Good Doctor, operates an online healthcare platform covering 7,500 pharmacies, 500 dentistry clinics, 1,100 health check-up facilities, and 3,100 hospitals. According to the company, the proceeds raised from the IPO would help fund acquisitions, strategic alliances, and research and development.

Patient-Intake

Phreesia, a patient-intake software platform provider for healthcare providers, raised $167 million in its IPO by offering 9.3 million shares at $18 per share. The company’s stocks began trading on the NYSE under the symbol PHR. Phreesia was founded in 2005 and booked $104 million in revenue for the 12 months ended April 30, 2019. 

Telemedicine

Bright Health, a provider of telehealth and in-person clinical care through affiliated primary care clinics, went public in June 2021, raising approximately $924 million. The company sold 51.3 million shares at $18.00 per share. IPO values the company at $11.23 billion. In 2020, Bright Health generated more than $1.2 billion in revenue; and reported a net loss of nearly $248 million. The company has raised more than $1.5 billion in equity funding from investors such as T. Rowe Price Associates, Tiger Global Management, and Blackstone.

Amwell, a telemedicine platform that connects patients with doctors through secure video, has completed its upsized initial public offering, which brought in about $922 million in gross proceeds. The company sold 47,405,555 shares of its Class A common stock at an initial offering price of $18.00 per share.

Telehealth vendor is offering virtual care to 80 million people. It reported revenue of $122.3 million and a net loss of $113 million in the first half of 2020.

Telehealth

Telehealth company Teladoc raised $157 million by offering 8.3 million shares at $19 per share. The company started trading on the NYSE under the symbol TDOC. J.P. Morgan and Deutsche Bank acted as the lead book-runners on the deal. Teladoc’s offer price gives it a $758 million market cap and $620 million enterprise value. For the first three months of 2015, Teladoc reported revenues of approximately $16.5 million and a net loss of $12.7 million. 

Hims & Hers, a direct-to-consumer telehealth and wellness brand, went public in a $1.6 billion SPAC deal sponsored by Oaktree Capital Management, an investment management firm. The company started trading on the NYSE under the symbol “HIMS.” Hims sells health-related products and services directly to consumers and doesn’t take insurance. The company’s products include birth control, acne treatments, and supplements. It also offers an online primary care offering for sore throat, congestion, and pink eye at a flat fee of $39 per visit. About 90% of the company’s income comes from recurring subscriptions, and it charges customers a monthly fee for its services.

Wearables

Wearable fitness tracker maker Fitbit raised $841 million through a public offering of 36.6 million shares at $20 per share. The IPO brought its valuation to $4.1 billion. It began trading on NYSE under the ticker symbol FIT. Fitbit competes with Apple Watch and Jawbone, a business that makes wearable electronics. The San Francisco-based company operates in over 50 countries. 

Fitbit is already making profits. In 2014, the Fitbit business brought in $745 million in revenue and made a profit of $130 million. The IPO proceeds help the company grow even more.

Movano, which is developing a smartwatch-like wearable device that measures glucose, blood pressure, and heart rate, raised nearly $43 million by offering 8,500,000 shares at $5.00 per share. Movano started trading on the Nasdaq under the symbol MOVE. National Securities and Liquid Venture Partners acted as lead managers on the deal.

Owlet Baby Care, an app-connected baby monitor maker, went public through a merger deal with Sandbridge Acquisition Corp., a SPAC. The merger deal brought Owlets’ valuation to more than $1 billion. Owlet will receive $135 million as part of the deal from Sandbridge and the concurrent private placement (PIPE). Founded in 2012, Owlet creates smart baby socks that can give parents and caregivers insights into a baby’s heart rate, oxygen levels, and sleep patterns.

Social Network

Doximity, which established itself as the LinkedIn for doctors and has over 1.8 million medical professionals on its network, announced the closing of its public offering raising $500 million. 

Doximity sold 19 million shares at $26 per share, bringing its market cap to $9.4 billion. The company’s revenue climbed to $206.9 million, and net income jumped to $50.2 million in the fiscal year that ended in March 2021.

Data Analytics

Cloud-based healthcare data analytics firm Inovalon Holdings raised $600 million from its initial public offering of 22.2 million class A shares. Inovalon utilizes predictive algorithms to suggest health conditions by analyzing the information stored in its registry, which comprises more than 9.2 billion medical events from more than 120 million unique patients. Morgan Stanley, Goldman Sachs, Citi, BofA, UBS Investment, and Bank Merrill Lynch acted as lead managers on the deal.

Evolent Health, a digital health company providing population health analytics solutions, raised $195 million in its initial public offering, bringing its valuation to about $950 million. It offered over 13 million shares at $17 per share. Evolent, which began operations in 2011, reached $100 million in revenue in 2014.

Healthcare Costs

The San Francisco-based company Castlight Health, which helps employers manage and analyze their healthcare costs, raised $178 million after it sold all 11.1 million shares priced at $16 per share. Goldman Sachs, Morgan Stanley, Allen & Co, Stifel, Canaccord Genuity, and Raymond James acted as lead underwriters on the deal.

Diabetes Care 

Livongo Health, a provider of diabetes services to large employers, made its public market debut after raising $355 million in its IPO. It offered 12,687,000 shares of its common stock at $28.00 per share. The IPO values Livongo at over $3.6 billion. The company’s revenue more than doubled in 2018 to $68.4 million, while its loss widened to $33.4 million.

Employee Benefits 

Employee benefits platform Accolade made its debut on the stock market in July 2020. The company sold more than 10 million shares at $22 per share, for a total of $220 million. The public offering brought its valuation to $1.2 billion. Accolade uses its proprietary technology and health assistants to guide employees through their health benefits. 

Medical Imaging

Nano-X Imaging, a developer of an advanced X-ray technology system, raised $165.2 million in an initial public offering. The company offered 9,178,744 ordinary shares at $18 per share. It listed shares on the Nasdaq Global Market under the ticker symbol NNOX.

Information

Everyday Health, best known for its online health, wellness, and medical-related content, raised $100 million by offering 7.2 million shares at $14 per share. Everyday Health commands a $441 million enterprise value and a $454 million market cap post-IPO. The company listed its stocks on the NYSE under the symbol “EVDY.” Credit Suisse, J.P Morgan, and Citi acted as joint book-runners on the deal.

Security 

Healthcare data security provider Imprivata raised over $86 million from its IPO. The Massachusetts-based company, which generated $71 million in revenue for the year ending December 31, 2013, started trading on the NYSE under the symbol IMPR. The company offered 5.75 million shares at $15.00 per share. J.P. Morgan and Piper Jaffray acted as joint book-running managers, and William Blair, Wells Fargo Securities, and Stephens acted as co-managers.

Genetic Testing

23andMe, an at-home genetic DNA-testing kit company, went public through a SPAC deal with VG Acquisition Corp. The IPO fetched nearly $600 million proceeds for 23andMe and valued it at $3.5 billion. 23andMe uses genetic test kit data to develop new drugs and therapies; and has more than 30 oncology, respiratory, and cardiovascular therapeutics in development.

Precision medicine

Blackstone-backed Sema4, a company focused on providing genomic and clinical data insights, has gone public through a blank-check acquisition company—CM Life Sciences. Seema will receive $500 million in cash proceeds to grow its business.

Sema4 offers precision medicine, tailoring patient treatment to their genetic profile. The company generates and processes health data and uses AI and machine learning to find health indicators and the risk of developing new conditions, such as cancer. It has more than 1,000 employees and generated almost $175 million in revenue in 2020.

Therapeutics Apps

Pear Therapeutics, a San Francisco-based company that developed the first digital therapeutics tools, went public through a SPAC deal with Thimble Point Acquisition Corp.

The deal would value the company at $1.6 billion. Pear began trading on Nasdaq under the ticker symbol PEAR.

Video games

Akili Interactive went public after merging with Social Capital Suvretta Holdings Corp. I, a blank-cheque firm. The deal brought the combined company’s valuation to almost $1 billion. The deal could net Akili $412 million. Akili, a digital health startup that developed video games to treat attention-deficit disorders, started trading on Nasdaq under the ticker symbol AKLI....

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