Tempus AI, a health-care diagnostics company that uses AI to interpret medical tests to assist physicians provide more accurate treatment for his or her patients, rose by as much as 15% in its Nasdaq Stock Market trading debut on Friday, after going public under the ticker symbol “TEM.”
Tempus AI priced 11.1 million shares at $37 apiece on Thursday, at the highest of its initial $35 to $37 goal range. The corporate raised $410 million at an implied valuation of just over $6 billion. Its early gains, in the event that they hold, would place the corporate at a valuation of roughly $7 billion.
Tempus believes that AI can assist guide therapy selection and treatment decisions, along side the patient’s doctor. It generated total revenue of $531.8 million in 2023 and a net lack of $214.1 million.
“We’re on a extremely good trajectory,” Tempus AI CEO Eric Lefkofsky said on CNBC’s “Squawk Box” Friday morning before shares began trading. “As revenues have been growing quickly, we’re not investing all that gross profit dollar growth back into the business. We’re generating improved leverage every quarter,” he said, adding that he expects the corporate to be each money flow and EBITDA positive inside the subsequent 12 months.
Tempus AI is applying among the most heavily-funded technology concepts — artificial intelligence and data evaluation — to constructing a greater, more informed medical career. The shortage of diagnostic testing early within the Covid-19 outbreak was an example of how a system as mature as our health-care infrastructure can still be unprepared for the longer term.
The Chicago-based company said in its IPO filing, “we endeavor to unlock the true power of precision medicine by creating Intelligent Diagnostics through the sensible application of artificial intelligence, or AI, in healthcare. Intelligent Diagnostics use AI, including generative AI, to make laboratory tests more accurate, tailored, and private. We make tests intelligent by connecting laboratory results to a patient’s own clinical data, thereby personalizing the outcomes.”Â
The 2-time CNBC Disruptor 50 company’s at-home testing kit was quickly rolled out in the course of the pandemic, but the issue Tempus is attacking shouldn’t be Covid-specific. The Tempus idea got here to Lefkofsky, also known for co-founding Groupon, during frustration with the health-care system after his wife received a breast cancer diagnosis. Oncology is a primary focus and the corporate’s genomic tests are designed to grasp tumors on the molecular level and tailor treatment to individuals.
Morgan Stanley, J.P. Morgan and Allen & Company were the lead underwriters for Tempus AI’s offering.
Investors include Google, Baillie Gifford, Franklin Templeton, NEA and T. Rowe Price, in response to PitchBook data.
— CNBC’s Bob Pisani contributed to this reporting.
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