Tabula Rasa Healthcare Updates Expected IPO Pricing

By Chris Lange Updated Jan 13, 3:06AM EST · Published Sep 27, 10:20AM EDT

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Tabula Rasa Healthcare Updates Expected IPO Pricing — © Thinkstock

The U.S. Securities and Exchange Commission (SEC) has received an S-1 form from Tabula Rasa Healthcare regarding its initial public offering (IPO). The company intends to price its 4.3 million shares in the range of $13 to $15 per share, with an overallotment option for an additional 645,000 shares. At the maximum price, the entire offering is valued up to $74.2 million. The company intends to list on the Nasdaq Global Market under the ticker TRHC.

The underwriters for this offering are Wells Fargo, UBS Investment Bank, Piper Jaffray, Baird and Stifel.

This company is a leader in providing patient-specific, data-driven technology and solutions that enable health care organizations to optimize medication regimens to improve patient outcomes, reduce hospitalizations, lower health care costs and manage risk.

Tabula Rasa delivers its solutions through a comprehensive suite of technology-enabled products and services for medication risk management, which includes bundled prescription fulfillment and adherence packaging services for client populations with complex prescription needs. It also provides risk adjustment services, which help clients to properly characterize a patient’s acuity, or severity of health condition, and optimize the associated payments for care.

The company currently serves roughly 100 health care organizations that focus on populations with complex health care needs and extensive medication requirements.

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In the filing, the company detailed its finances as follows:

Since our first year of active operations in 2011, our revenue has grown to $70.0 million for the year ended December 31, 2015, and $42.6 million for the six months ended June 30, 2016, with a net loss of $2.9 million and $77 thousand, respectively, and adjusted EBITDA of $8.6 million and $5.6 million, respectively, for those periods.

The company intends to use the net proceeds from this offering to repay its indebtedness, continue to develop new product offerings, enter new market segments, expand sales and marketing, and fund additional acquisitions. The remainder will be used for working capital and general corporate purposes.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.