More healthtech companies are going public, but are they measuring up?

Steven Loeb · October 7, 2021 · Short URL: https://vator.tv/n/530c

A number of 2021 healthtech companies are trading below their IPO price, with reduced market caps

Earlier this year I wrote a piece entitled, "A maturing space buoyed by the pandemic: 2021 will be the year of the healthtech IPO." The thesis of that piece was that a number of factors had converged to potentially make 2021 the year when healthtech companies would finally be comfortable going public: beyond the obvious impact of the ongoing pandemic, which buoyed a number of digital health companies over the last 18 months, there's also the Livongo IPO, which went public in 2019 to great success, giving other companies the confidence to also make the move.

On top of that, this year also saw the rise of SPACs, a new vehicle for entering the public market that a number of well known companies in the healthtech space took advantage of.

We're now entering the final quarter of 2021, and it looks like that prediction turned out to be correct: there are already at least 15 healthtech companies that have gone public this year, compared to seven healthtech IPOs in 2019, and eight in 2020; those numbers were already indications that the space was maturing as, before the last few years, there were, at most, two healthtech companies a year entering the public market.

So, now that all of these companies have entered the market, the next question is, how are they performing? Because that will be what determines if this trend of healthtech companies entering the public market is a fad or an enduring trend.

So far, the results are mixed at best: while some companies are thriving, a good number of them are currently trading down from their IPO prices, with reduced market caps from when they went public. But there is some hope, as the companies that went public last year are almost all thriving.

Here are the healthtech companies that have gone public in the last two years, divided by year and whether they are up or down from their IPO price:

2021 IPOs TRADING ABOVE IPO PRICE

Doximity Launches Interactive Salary Map for Nurse Practitioners Doximity - (trades under DOCS) is currently 232% up from its IPO

"Doximity is the largest community of healthcare professionals in the country - with over 80% of U.S. doctors and 50% of all NPs and physician assistants as verified members"

IPO date: June 24, 2021
Amount raised in IPO: $606 million
IPO price: $26
Opening price: $41.17
Closing price: $53
Valuation at IPO: $9.4 billion
All-time high (9/10/2021): $102.02
Current price: $86.44
Current market cap: $18.8 billion

Agilon Health - (trades under AGL) is currently 22% up from its IPO

"agilon health is built for physicians by physicians, as the patient-physician relationship is the cornerstone of care. We allow primary care physicians to take the long view of their relationships with patients, and to be confident in the long-term financial viability of their own practices. We do this through a Total Care Model that maintains the independence of physicians; unites them in a network of like-minded leaders; and integrates all of the components of a global risk business model into a single platform"

IPO date: April 15, 2021
Amount raised in IPO: $1.07 billion
IPO price: $23
Opening price: $28.25
Closing price: $31
Valuation at IPO: $11 billion
All-time high (6/18/2021): $43.25
Current price: $28.11
Current market cap: $12.4 billion

Privia Health Group - (trades under PRVA) is currently 15% up from its IPO

"Privia Health elevates the patient-provider relationship by delivering tools, talent, and technology built to transform healthcare. Our proven, physician-focused platform is designed to reduce unnecessary costs, achieve better outcomes, and improve patient health and provider well-being"

IPO date: April 29, 2021
Amount raised in IPO: $778.4 million
IPO price: $23
Opening price: $30
Closing price: $34.75
Valuation at IPO: $3.57 billion
All time high (06/28/2012): $49.25
Current price: $26.38
Current market cap: $2.8 billion

2021 IPOs TRADING BELOW IPO PRICE

Bright Health - (trades under BHG) is currently 51% down from its IPO

"At Bright HealthCare, we use smart tools and technology to simplify health insurance for all of us. Our goal is to take the confusion and chaos out of the process and build benefit-packed plans that still deliver surprisingly low rates, so you can focus on staying happy and healthy…and paying less for your healthcare"

IPO date: June 24, 2021
Amount raised in IPO: $924 million
IPO price: $18
Opening price: $17
Closing price: $16.64
Valuation at IPO: $11.23 billion
All-time high (7/09/2021): $28.90
Current price: $8.74
Current market cap: $6.3 billion

LifeStance - (trades under LFST) is currently 13.6% down from its IPO

"At LifeStance, there’s no one-size-fits-all approach to mental health. We tailor our care plans to fit each person’s unique needs. Our clinicians include psychiatrists, psychologists, and licensed therapists who are ready to support you. LifeStance offers both in-person and telehealth appointments, so you get the care you need in the format that serves you best."

IPO date: June 10, 2021
Amount raised in IPO: $720 million
IPO price: $18
Opening price: $20
Closing price: $21.90
Valuation at IPO: $7.5 billion
All time high (07/07/2012): $28.95
Current price: $14.01
Current market cap: $5.8 billion

Signify Health - (trades under SGFY) is currently 3.9% down from its IPO

"Our solutions align financial incentives around health outcomes. By engaging people where they are, we help them stay healthy and independent at home and support their recovery homeward as part of an episode of care. This helps our customers lower costs, improve the quality of care and foster better experiences for individuals all while reducing financial risks and expanding opportunities to participate in value-based programs"

IPO date: February 11, 2021
Amount raised in IPO: $564
IPO price: $24
Opening price: $32
Closing price: $31.56
Valuation at IPO: $7.12 billion
All time high (07/07/2012): $28.95
Current price: $23.07
Current market cap: $4 billion

Oscar Health - (trades under OSCR) is currently 54% down from its IPO

"Oscar is the first health insurance company built around a full stack technology platform and a relentless focus on serving our members. We started Oscar in 2012 to create the kind of health insurance company we would want for ourselves—one that behaves like a doctor in the family"

IPO date: March 3, 2021
Amount raised in IPO: $1.4 billion
IPO price: $39
Opening price: $36
Closing price: $34.80
Valuation at IPO: $7.1 billion
All time high (05/10/2012): $36.77
Current price: $17.91
Current market cap: $3.7 billion

Alignment Healthcare - (trades under ALHC) is currently 2.6% down from its IPO

"Alignment is practicing a bold new idea: it is possible to solve the complicated issues in health care while being financially responsible. We must care anywhere and do so by combining technology with better care—over the phone, online, in doctors’ offices and the senior’s home."

IPO date: March 26, 2021
Amount raised in IPO: $391 million
IPO price: $18
Opening price: $19.05
Closing price: $17.31
Valuation at IPO: $3.29 billion
All time high (06/21/2012): $27.27
Current price: $17.54
Current market cap: $3.5 billion

Convey Health Solutions - (trades under CNVY) is currently 43% down from its IPO

"Since 2001, Convey Health Solutions has remained dedicated to solving the biggest challenges that healthcare organizations face. Devoted to our vision to empower excellence, we unite extensive expertise, purpose–built technology, and robust data analytics, to ensure delivery of integrated, end–to-end healthcare solutions that achieve meaningful results for you, our clients."

IPO date: June 16, 2021
Amount raised in IPO: $186.7 million
IPO price: $14
Opening price: $14
Closing price: $13
Valuation at IPO: $702 million (acquisition price when the company was bought in 2019)
All time high (06/16/2012): $13
Current price: $8.02
Current market cap: $667.3 million

Movano Inc. Movano - (trades under MOVE) is currently 30% down from its IPO

"Movano is developing wearable technology, which measures glucose, blood pressure and other relevant health data in a way that is painless, simple and smart"

IPO date: March 23, 2021
Amount raised in IPO: $48.9 million
IPO price: $5
Opening price: $6
Closing price: $6.6
Valuation at IPO: $203.6 million
All time high (04/07/2012): $6.64
Current price: $3.51
Current market cap: $117 million

2020 IPOs TRADING ABOVE IPO PRICE

GoodRx - (trades under GDRX) is currently 37% up from its IPO

"We believe everyone deserves affordable and convenient healthcare. We build better ways for people to find the best care at the best price. Our technology gives all Americans — regardless of income or insurance status — the knowledge, choice, and care they need to stay healthy. We’re here to help"

IPO date: September 23, 2020
Amount raised in IPO: $1.1 billion
IPO price: $33
Opening price: $46.70
Closing price: $50.50
Valuation at IPO: $18 billion
All-time high (09/28/2020): $56.79
Current price: $45.26
Current market cap: $18.6 billion

Oak Street Health - (trades under OSH) is currently 141% up from its IPO

"At Oak Street Health, our primary care providers are specialized in caring for Medicare patients and seniors with a preventative care focus that strives to keep you healthy and out of the hospital. Our state-of-the-art facilities are set up to handle what seniors need most, including community rooms to offset isolation, in-center pharmacies in some centers, and even behavioral health specialists"

IPO date: August 6, 2020
Amount raised in IPO: $328 million
IPO price: $21
Opening price: $42.50
Closing price: $40
Valuation at IPO: $5 billion
All-time high (02/12/2021): $64.99
Current price: $50.71
Current market cap: $12.6 million

Modernizing Health Care

One Medical - (trades under ONEM) is currently 78% up from its IPO

"One Medical is a membership-based primary care practice on a mission to make getting quality care more affordable, accessible, and enjoyable for all through a blend of human-centered design, technology, and an exceptional team. Our members enjoy seamless access to comprehensive care at calming offices near where they work, live, and shop in twelve major U.S. markets, as well as 24/7 access to virtual care"

IPO date: January 30, 2020
Amount raised in IPO: $245 million
IPO price: $14
Opening price: $18
Closing price: $22.07
Valuation at IPO: $2.7 billion
All-time high (02/12/2021): $58.70
Current price: $24.90
Current market cap: $4.7 billion

Schrödinger Announces Pricing of Initial Public Offering Schrodinger - (trades under SDGR) is currently 247% up from its IPO

"With steadfast investment in R&D, we continue to develop and refine our scientific platform. Our platform is deployed by users worldwide to enable the discovery of novel therapeutics and materials more rapidly, at a lower cost, and we believe with a higher likelihood of success. It is also the foundation of our internal drug discovery initiatives to develop first-in-class therapies"

IPO date: February 6, 2020
Amount raised in IPO: $232 million
IPO price: $17
Opening price: $26
Closing price: $28.64
Valuation at IPO: $1.1 billion
All-time high (02/22/2021): $112.38
Current price: $59.06
Current market cap: $4.4 billion

Accolade - (trades under ACCD) is currently 97% up from its IPO

IPO date: July 2, 2020
Amount raised in IPO: $220 million
IPO price: $22
Opening price: $35
Closing price: $29.70
Valuation at IPO: $1.2 billion
All-time high (12/10/2020): $59.72
Current price: $43.26
Current market cap: $3 billion

2020 IPOs TRADING BELOW IPO PRICE

Amwell - (trades under AMWL) is currently 62% down from its IPO

"One solution for virtual care. We equip clinicians, patients, and the industry that supports them, with the tools to realize a better healthcare experience"

IPO date: September 17, 2020
Amount raised in IPO: $742 million
IPO price: $28
Opening price: $25.51
Closing price: $23.07
Valuation at IPO: $6.5 billion
All-time high (01/27/2021): $42.80
Current price: $10.68
Current market cap: $2.7 billion

GoHealth - (trades under GOCO) is currently 76% down from its IPO

"As a leading health insurance marketplace, GoHealth’s mission is to improve access to healthcare in America. For customers, enrolling in a health insurance plan is confusing and difficult, and seemingly small differences between plans can lead to significant out-of-pocket costs or lack of access to critical medicines and even providers"

IPO date: July 15, 2020
Amount raised in IPO: $913 million
IPO price: $21
Opening price: $25
Closing price: $19.46
Valuation at IPO: $6.6 billion
All-time high (07/22/2021): $21.98
Current price: $5.12
Current market cap: $1.7 billion

SPACs

23andMe - (trades under ME) is currently 36% down from the closing price of first day

"DNA insights are an essential part of your health picture.You’re already doing so much to track your health. Add personalized DNA insights for a more complete picture of your health"

IPO date: June 17, 2021
Amount raised in SPAC: $759 million
PIPE: $250 million
Opening price: $11.13
Closing price: $13.32
Valuation at offering: $3.5 billion
All time high (06/17/2012): $13.32
Current price: $8.46
Current market cap: $3.4 billion

Clover Health - (trades under CLOV) is currently 51% down from the closing price of first day

"Clover Health is Medicare done differently. Clover Health Medicare Advantage plans have all the essentials—like hospital coverage, doctor visits, and drug coverage (Part D)—plus no-cost extras, like vision, dental, and hearing coverage"

Listing date: January 8, 2021
Amount raised in SPAC: $1.2 billion
PIPE: $400 million
Opening price: $15.30
Closing price: $15.90
Valuation at offering: $3.7 billion
All time high (06/08/2012): $22.15
Current price: $7.49
Current market cap: $3.4 billion

Sharecare - (trades under SHCR) is currently 6% down from the closing price of first day

"Everyone lives better, longer. That’s the vision. We’re making strides every day by bringing together the many different elements of health for you, your family, and your community. It’s not easy connecting doctors, health plans, employers, useful tools, quality information, and more to deliver what you need when you need it. But that’s what makes Sharecare special. We’re putting the power of living your healthiest life in your hands"

Listing date: July 2
Amount raised in SPAC: $770 million
PIPE: $425 million
Opening price: $9.37
Closing price: $9.33
Valuation at offering: $3.9 billion
All time high (07/02/2012): $9.33
Current price: $8.78
Current market cap: $2.67 billion

Hims Inc. - Investor relations Hims & Hers - (trades under HIMS) is currently 47% down from the closing price of first day

"Hims is about personal wellness. You should look and feel your best all the time. Our job is to make that easy and affordable"

Listing date: January 21, 2021
Amount raised in SPAC: $280 million
PIPE: $75 million
Opening price: $17.08
Closing price: $15.43
Valuation at offering: $1.6 billion
All time high (02/08/2012): $24.46
Current price: $8.14
Current market cap: $1.8 billion

Talkspace - (trades under TALK) is currently 48% down from the closing price of first day

"Talkspace's mission is to make therapy and psychiatry more available and affordable. Our goal is to provide convenient access to licensed providers—to support the mental wellness of those in need. We created Talkspace so more people can benefit from therapy, and have the tools to grow, heal and overcome day-to-day challenges"

Listing date: June 23, 2021
Amount raised in SPAC: $764 million
PIPE: $300 million
Opening price: $8.9
Closing price: $9.19
Valuation at offering: $1.4 billion
All time high (06/23/2012): $9.19
Current price: $4.80
Current market cap: $718 million