Tempus AI, a healthcare diagnostics company that uses artificial intelligence to interpret medical tests to assist doctors treat their patients more accurately, rose as much as 15% in its Nasdaq stock market debut on Friday after going public under the ticker symbol “TEM.”
Tempus AI priced 11.1 million shares at $37 each on Thursday, the high of its original goal range of $35 to $37. The company raised $410 million, giving it an implied valuation of just over $6 billion. Its early gains have pushed the corporate to a valuation of as much as $7 billion, however it closed the primary day of trading up nearly 9 percent and with a market cap of around $6.65 billion.
Tempus believes that AI, in collaboration with the patient's physician, may also help with therapy selection and treatment decisions. The company generated total revenue of $531.8 million and a net lack of $214.1 million in 2023.
“We're on a really good trajectory,” Tempus AI CEO Eric Lefkofsky said on CNBC's “Squawk Box” Friday morning before stock trading began. “As revenues grow rapidly, we're not investing all of the gross profit growth in dollars back into the business. We're delivering improved leverage every quarter,” he said, adding that he expects the corporate to be each money flow and EBITDA positive next 12 months.
Tempus AI is applying a number of the most heavily promoted concepts in technology – artificial intelligence and data analytics – to construct a greater, more informed medical occupation. The shortage of diagnostic tests at first of the Covid-19 outbreak was an example of how a system as mature as our healthcare infrastructure can still not be prepared for the longer term.
The Chicago-based company stated in its IPO: “We strive to unlock the true power of precision medicine by developing intelligent diagnostics through the practical application of artificial intelligence (AI) in healthcare. Intelligent Diagnostics uses AI, including generative AI, to make laboratory testing more accurate, tailored and personalized. We make testing intelligent by linking laboratory results to a patient's own clinical data, personalizing results.”
The double CNBC Disruptor 50 The company's home testing kit was quickly rolled out through the pandemic, but the issue Tempus is tackling is just not Covid-specific. Lefkofsky, also often known as the co-founder of Groupon, got here up with the concept for Tempus when he was dissatisfied with the healthcare system after his wife was diagnosed with breast cancer. A serious focus is oncology, and the corporate's genomic tests are designed to grasp tumors on the molecular level and tailor treatment to the person.
Morgan Stanley, JP Morgan and Allen & Company were the essential guarantors of Tempus AI’s offering.
According to PitchBook data, investors include Google, Baillie Gifford, Franklin Templeton, NEA and T. Rowe Price.
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