Breaking the digital health IPO drought, there were four initial public offerings (IPOs) during a five-week period from late June to late July, including Livongo, Health Catalyst, Phreesia, and Change Healthcare. The last health IT companies to reach IPO were iRhythym Technologies and Tabula Rasa Healthcare in late 2016 – representing an almost three-year IPO drought.
On July 25, Livongo (chronic care management) shares jumped 36% on the first day of trading to close at $38.10 after issuing at $28/share. The closing price valued the company at approximately $3.5 billion or 27.3x run-rate Q1 2019 revenue. Year-over-year Q1 revenue increased 157% to $32.1mm.
Also on July 25, Health Catalyst (healthcare analytics) shares soared 50% on the first day of trading to close at $39.17 after issuing at $26/share. The closing price valued the company at approximately $1.4 billion or 10x run-rate Q1 2019 revenue. Year-over-year Q1 revenue increased by 71% to $35.2mm.
On July 18, Phreesia (patient payments and registration) shares closed up 39% on the first day of trading to close at $25.08 after issuing at $18/share. The closing price valued the company at approximately $890 million or 7.9x run-rate Q1 2019 (April quarter) 2019 revenue. Year-over-year Q1 revenue increased 18.6% to $28.3mm.
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
Change Healthcare (healthcare connectivity and revenue cycle) closed up 15% on its June 27 IPO.
Date: August 14, 2019
Source: RamaOnHealthcare
