NantHealth, the health IT, genomics and analytics division of Dr. Patrick Soon-Shiong’s NantWorks operation, has finally filed for a long-awaited initial public offering.
The IPO had been expected last year, but Soon-Shiong told MedCity News in January that he put off the move until NantHealth completed its acquisition of payer-provider communications platform NaviNet.
Transforming Patient Care: The Role of AI-Powered Assistants
The progress in artificial intelligence (AI) is reshaping patient care, across various dimensions, from facilitating faster discharge to curating treatment plans and suggesting lifestyle changes.
Here are seven interesting tidbits we found in NantHealth’s S-1 registration statement.
1. The Culver City, California-based company filed for an IPO worth as much as $92 million. That’s actually relative pocket change, given that Allscripts Healthcare Solutions invested $200 million in NantHealth last year, and that NantHealth has been valued at $2 billion. (However, the S-1 lists net tangible book value at $239.4 million as of Dec. 31, which means total tangible assets minus liabilities.)
2. The government of Kuwait owns at least 10 percent of NantHealth, via two holding companies. The Kuwait Investment Authority had put $250 million into NantHealth in 2014.
3. NantHealth has named its knowledge, provider and payer platform CLINICS, for Comprehensive Learning Integrated NantHealth Intelligent Clinical System. Here’s a diagram of how that fits within the company’s overall IT picture:
Market Trends to Watch for Health Systems and Their Specialty Pharmacies
The future looks bright for the integrated specialty pharmacy model – for health systems, providers, and most importantly, for patients.
According to the registration statement:
CLINICS is designed to address many of the key challenges healthcare constituents face by enabling them to acquire and store genomic and proteomic data, combine diagnostic inputs with phenotypic and cost data, analyze datasets, securely deliver that data to providers in a clinical setting to aid selection of the appropriate treatments, monitor patient biometric data and progression on a real-time basis, and demonstrate improved patient outcomes and costs.
4. Six-year-old NantHealth is losing money, but its $72 million net loss in 2015 was less than the $84.6 million deficit in 2014. Revenues rose 72 percent last year, to $58.3 million from the previous year’s $33.9 million.
5. NantHealth expects to launch its commercial genomics sequencing and molecular profiling product, called GPS Cancer, this quarter. GPS stands for Genomics Proteomics Spectromety.
6. Even though Soon-Shiong earlier said that the NaviNet purchase completed his “10-year vision” of integrating the provider, payer and knowledge domains, NantHealth may not be done with acquisitions. “We believe opportunities exist for us to enhance our competitive position by acquiring additional companies with complementary products and technologies and/or acquiring rights to proprietary products or technologies from third parties,” according to the S-1.
7. This won’t be Soon-Shiong’s primary job. “Although we expect Dr. Soon-Shiong will devote on average at least 20 hours per week to our company, he will primarily focus on NantKwest, Inc., or NantKwest, a publicly-traded, clinical-stage immunotherapy company, of which he is Chairman and Chief Executive Officer. Dr. Soon-Shiong will also devote time to other companies operating under NantWorks, a collection of multiple companies in the healthcare and technology space that Dr. Soon-Shiong founded in 2011,” the filing said.
Photo: Kevork Djansezian/Getty Images