Update: Well, it’s not $2 billion, but the $100 million initial public offering Castlight Health has filed should give a sense of how digital health startups and their services for employer health plans are valued.
Castlight has focused on bringing more transparency to healthcare costs for employer health plans so employees can make more informed decisions about where they should go for medical procedures.
Here are some of the interesting takeaways from its S-1 filing with the U.S. Securities and Exchange Commission:
- It has increased revenues from $1.9 million in 2011 to $13 million in 2013, but it has operated at a loss each year, with net losses totaling $62.2 million last year.
- It has debts of $131.2 million as of the end of last year.
- Its backlog of customer agreements amounted to $108.7 million as of December 31, 2013.
- It sees a market opportunity of more than $5 billion, “based on the number of people who rely on health care funded by self-insured employers” and its estimate of the potential fee opportunity for its service.”
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
- It has a customer base of 106, having added 95 in the past two years. Its customer base is mostly “large, self-insured employers across a broad range of industries,” and includes 24 Fortune 500 companies.
- Walmart accounts for 16 percent of its revenue.
- It will trade on the New York Stock Exchange under the symbol, “CSLT.”
Castlight has netted $160 million in funding from investors since 2010 including Venrock, Oak Investment Partners, Maverick Capital and Cleveland Clinic.
