Monday, May 9, 2016

Precision Medicine IPO: NantHealth Files for IPO

NantHealth, a Culver City based company led by billionaire Patrick Soon-Shiong MD, has filed for a $92M IPO under the symbol NH.  The S-1 is available here.  The summary begins at page PDF p. 8; the full business plan description begins on page PDF p. 103.

[Update, an update was filed May 24 with new information including a proposed share price of $12-15; news here; document here].

Current investors include Allscripts, Verizon, Blackberry, Kuwait, and Celgene.  In the past year, Nanthealth reports $58M revenue and a $72M net loss, suggesting spending at the rate of about $130M per year.

A 7-point analysis by Neil Versel at MedCity News is here.  An 8-point analysis by HIT Consultant, here.  Coverage at FierceMedicalDevices here.

NantHealth's home page is here.  For an April, 2016 video interview between Soon-Shiong and Eric Topol, here (website includes transcript).


The S-1 provides dozens of pages of detailed discussion of the NantHealth business model, which is comprehensive (imagine Flatiron + Foundation Medicine + Syapse + IBM Watson + more).   There are also unexpected remarks, such as a statement about "other services" provided already - "Other services revenue also includes the sale of nursing and therapy services provided to patients in a home care setting."

Several images show data on "inaccurate calls from a 328 gene panel" (e.g. PDF page 126).  Samples of the proprietary "GPS Cancer Report" are provided (e.g. PDF page 121).

Click on images below to enlarge or see the original S-1.