NantHealth Explodes Into the Market With IPO

NantHealth (NASDAQ: NH) entered the market with a bang on Thursday in its initial public offering (IPO). The company priced its 6.5 million shares at $14 per share (which reflects a one-for-five reverse stock split of NantHealth’s common stock effected in connection with the conversion of the company from a limited liability company to a corporation), with an overallotment option for an additional 975,000 shares. The entire offering is valued up to $104.65 million. Despite pricing at $14 per share, the stock opened at $16.11, and since then has risen handily.

The underwriters for the offering were Jefferies, Cowen, First Analysis Securities, Canaccord Genuity and FBR Capital Markets.

This leading next-generation, evidence-based, personalized health care company enables improved patient outcomes and more effective treatment decisions for critical illnesses. Its unique systems-based approach to personalized health care applies novel diagnostics tailored to the specific molecular profiles of patient tissues and integrates this molecular data in a clinical setting with large-scale, real-time biometric signal and phenotypic data to track patient outcomes and deliver precision medicine.

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For nearly a decade, NantHealth has developed an adaptive learning system, CLINICS, which includes its unique software, middleware and hardware systems infrastructure that collects, indexes, analyzes and interprets billions of molecular, clinical, operational and financial data points derived from novel and traditional sources, continuously improves decision-making and further optimizes the clinical pathways and decision algorithms over time. As a pioneer in the era of big data and augmented intelligence, the company believes that it is uniquely positioned to benefit from multiple significant market opportunities as health care providers and payors transition from fee-for-service to value-based reimbursement models and accelerate their pursuit of evidence-based clinical practice.

NantHealth intends to use the net proceeds from this offering for general corporate purposes, to pay roughly $9.0 million to cover withholding taxes, and commercialize new solutions and product extensions and potentially pursue targeted acquisitions.

Shares of NantHealth were last trading up 40% at $19.61. So far on the day, the stock is in the range of $16.11 to $21.00, and about 2 million shares have moved.

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