Healthtech stocks are ending 2021 on a down note

Nearly all of the companies that went public over the last 2 years have lost value since October

A couple of months ago, I wrote about all the healthtech companies that had gone public over the last couple of years, taking advantage of a number of trends, including conditions brought on by COVID, as well as the maturing of the space. That included IPOs, as well as SPACs, a new vehicle for entering the public market that a number of well known companies in the healthtech space took advantage of. 

The conclusion I drew was that 2021 was indeed the year of the healthtech public offering, as at least 15 healthtech companies had already gone public in 2021, compared to seven healthtech IPOs in 2019, and eight in 2020. And while many companies that went public in 2021 were struggling, the 2020 class was doing qell.

Since then, though, the news hasn't been great: almost all of them of them have lost significant stock and market cap value in just the last couple of months. Even those that are still beating their IPO prices are now beating them by much less than they were before.

Here's how they are currently performing and why:

2021 IPOs TRADING ABOVE IPO PRICE

Doximity - (trades under DOCS) is currently 101.6% 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: $52.42 (down 39% since October)
• Current market cap: $9.8 billion (down 48% since October)

The company's stock is still at more than double its IPO price, but is down 39% since October, and it was downgraded by JP Morgan earlier this month, after analyst Jackson Ader said he was "spooked" by recent downward price movement in companies like Zoom and DocuSign, which also benefit from remote communication and business needs.

"If the sell-off after the 2Q21 results is any indication for future reactions, investors here will not be forgiving of even strong upside," he wrote.Agilon Health - (trades under AGL) is currently 16.5% up from its IPO

• 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: $26.81 (down 4.6 since October)
• Current market cap: $10.55 billion (down 15% since October)

Analysts expect the company stock to ride. According to CNN Money, "the 9 analysts offering 12-month price forecasts for agilon health Inc have a median target of 35.00, with a high estimate of 44.00 and a low estimate of 30.00. The median estimate represents a +30.35% increase from the last price of 26.85."

Privia Health Group - (trades under PRVA) is currently 14% 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: $26.29
• Valuation at IPO: $3.57 billion
• All time high (06/28/2012): $49.25
• Current price: $26.29 (down 0.3% since October)
• Current market cap: $2.8 billion (even since October)

"The 8 analysts offering 12-month price forecasts for Privia Health Group Inc have a median target of 43.00, with a high estimate of 51.00 and a low estimate of 34.00. The median estimate represents a +63.31% increase from the last price of 26.33," wrote CNN Money.

2021 IPOs TRADING BELOW IPO PRICE

Bright Health - (trades under BHG) is currently 79% down from its IPO

• 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: $3.56 (down 59% since October)
• Current market cap: $2.23 billion (down 64% since October)

Part of the reason the company's stock has taken such a hit is it's underwhelming third quarter numbers, in which it posted revenue of $1 billion on a loss of 48 cents a share, whereas analysts had expected a loss of 19 cents per share on revenue of $1 billion. This was due to the company paying out more than it took in thanks to COVID-related costs.

LifeStance - (trades under LFST) is currently 42% 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: $10.37 (down 26% since October)
• Current market cap: $3.88 billion (down 33% since October)

The company's stop dropped 24% in one day in November, thanks to its Q3 earnings report, which saw $173.8 million in revenue, but a net loss of $120.5 million ($0.35 per share), compared to the expected net loss of $0.24 per share. This was after it fell 46% on its Q2 numbers in August.Signify Health - (trades under SGFY) is currently 42% 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: $13.85 (down 40% since October)
• Current market cap: $2.36 billion (down 41% since October)

Despite the company losing 40% of its stock value since October, analysts are still bullish on the stock.

"The 8 analysts offering 12-month price forecasts for Signify Health Inc have a median target of 29.00, with a high estimate of 34.00 and a low estimate of 19.00. The median estimate represents a +109.69% increase from the last price of 13.83," wrote CNN Business.  Oscar Health - (trades under OSCR) is currently 78% 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: $8.58 (down 52% since October)
• Current market cap: $1.79 billion (down 52% since October)

Goldman Sachs recently initiated coverage of Oscar Health, with analyst Nathan Rich designating it as a "sell."

"He believes that the company might struggle to be profitable, due to its presence in the competitive individual and family plan market. The analyst is initiating his coverage of Oscar Health by tagging it with a sell recommendation, at a price target of $6.50 per share -- a queasy 38% below Monday's close. No wonder the shares dropped so precipitously the day after," wrote Erik Volkman in the Motley Fool.

Alignment Healthcare - (trades under ALHC) is currently 22.5% 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: $13.94 (down 20.5% since October)
• Current market cap: $2.61 billion (down 25% since October)

The company's stock recently hit a new low but analysts are bullish.

"The 9 analysts offering 12-month price forecasts for Alignment Healthcare Inc have a median target of 25.00, with a high estimate of 30.00 and a low estimate of 20.00. The median estimate represents a +81.82% increase from the last price of 13.75," it says on CNN Money.Convey Health Solutions - (trades under CNVY) is currently 41% down from its IPO

• 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: $8.20 (up 2.2% since October)
• Current market cap: $600 million (down 10% since October)

"The 5 analysts offering 12-month price forecasts for Convey Health Solutions Holdings Inc have a median target of 16.00, with a high estimate of 18.00 and a low estimate of 13.00. The median estimate represents a +96.32% increase from the last price of 8.15," it says on CNN Money.Movano - (trades under MOVE) is currently 52% down from its IPO

• 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: $2.89 (down 18% since October)
• Current market cap: $94.7 million (down 19% since October) 

2020 IPOs TRADING ABOVE IPO PRICEGoodRx - (trades under GDRX) is currently 1% 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: $33.37 (down 26% since October)
• Current market cap: $13.31 billion (down 28% since October)

The company's stock fell in November after its Q3 numbers came out. While its numbers were strong, including revenue of $195 million, up 39% year-over-year, the company also lost money due to $40 million in stock-based IPO awards to management, which has been an on-going problem: since its IPO, GoodRx's two co-founders have been paid out $520 million in stock-based compensation. The good thing is that that will cease in 2022.

Oak Street Health - (trades under OSH) is currently 67.5% 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: $35.18 (down 31% ince October)
• Current market cap: $8.5 million (down 32.5% since October

One Medical - (trades under ONEM) is currently 23% up from its IPO

• 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: $17.20 (down 31% since October)
• Current market cap: $3.28 billion (down 30% since October)

Early in the year, One Medical was accused of allowing people to jump the line for COVID-19 vaccines, even if they were not eligible, which led to the company being barred from administering them. The company's also sent out an email that exposed hundreds of it's patients emails. However, what caused its stock to slump were its earnings: while its acquisition of Iora Health helped boost its revenue in Q3, it still posted a larger than expected net loss.Schrodinger - (trades under SDGR) is currently 106% 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: $35.02 (down 41% since October)
• Current market cap: $2.48 billion (down 44% since October)

The company lost 12% of its stock price in one day in November, after it missed in its Q3 numbers. While revenue was up 16% year-to-year, reaching $29.9 million, analysts had been expecting $31.6 million. The company also lost $0.49 per share, compared to the estimate was of a loss of $0.43 per share.Accolade - (trades under ACCD) is currently 7% 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: $23.61 (down 45% since October)
• Current market cap: $1.75 billion (down 42% since October)

"In the last twelve months, Accolade increased its revenue by 57%. That's well above most other pre-profit companies. Given the revenue growth, the share price drop of 14% seems quite harsh. Our sympathies to shareholders who are now underwater. On the bright side, if this company is moving profits in the right direction, top-line growth like that could be an opportunity. Our monkey brains haven't evolved to think exponentially, so humans do tend to underestimate companies that have exponential growth," wrote Nasdaq in November.

2020 IPOs TRADING BELOW IPO PRICEAmwell - (trades under AMWL) is currently 78% 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: $6.17 (down 42% since October)
• Current market cap: $1.6 billion (down 41% since October)

"It is presumed that as people start going outdoors, the visit to clinics and physicians will resume. After all, face-to-face or in-person consultation is more satisfactory than an online/virtual treatment. Since telemedicine was the only option left amid social distancing enforced by COVID, with the infection receding now, demand for American Well’s services will be tepid," Nasdaq wrote in September. GoHealth - (trades under GOCO) is currently 82% 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: $3.71 (down 27.5 percent since October)
• Current market cap: $1.7 billion (down 30% since October)

The company's shares dropped 16% in one day after it posted its Q3 numbers, with revenue of $163.4 million, as opposed to the expected $169.5 million, and a net loss of $206.5 million, or $0.65 per share, compared to the expected $0.01 per share loss.

SPACs23andMe - (trades under ME) is currently 49% 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: $6.78 (down 20% since October)
• Current market cap: $2.96 billion (down 13% since October)

Shares of 23andMe dropped 29.1% in November, following a disappointing earnings report, which saw revenue grow by 7% year over year. 

"Over the last six months, 23andMe has burned just over $100 million in operating cash flow, most of which is going to its drug/therapeutics business. With $700 million in cash on its balance sheet, the company has a lot of room to burn more money as it tries to bring drugs to market. However, with no clear path to profitability right now, investors in 23andMe need to expect further volatility ahead as the company tries to navigate as an early-stage drug developer," wrote the Motley Fool.Clover Health - (trades under CLOV) is currently 74.5% 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: $4.05 (down 46% since October
• Current market cap: $1.91 billion (down 44% since October)

"Clover Health has a market cap of $2.1 billion and trades at a price-to-sales ratio (P/S) of 1.8 after this recent drawdown. This may seem cheap considering how fast Clover Health is growing. But if the business can't get its costs in order, it will never bring in a dime in earnings, no matter how much revenue it brings in. Until its MCR starts consistently moving in the right direction, it will likely be smart to stay away from Clover Health stock," wrote the Motley Fool.Sharecare - (trades under SHCR) is currently 46% 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: $5 (down 43% since October)
• Current market cap: $1.69 billion (down 37% since October)

"Consensus from 2 of the American Healthcare Services analysts is that Sharecare is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$32m in 2023. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 85% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict," wrote Nasdaq. 

Hims & Hers - (trades under HIMS) is currently 57% 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: $6.59 (down 19% since October)
• Current market cap: $1.8 billion (down 26% since October)

"In the last year Hims & Hers Health saw its revenue grow by 73%. That's a strong result which is better than most other loss making companies. The share price drop of 27% over twelve months would be considered disappointing by many, so you might argue the company is getting little credit for its impressive revenue growth. Prima facie, revenue growth like that should be a good thing, so it's worth checking whether losses have stabilized. Our monkey brains haven't evolved to think exponentially, so humans do tend to underestimate companies that have exponential growth," Simply Wall St. wrote in November.Talkspace - (trades under TALK) is currently 78% 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: $1.99 (down 59% since October)
• Current market cap: $303 million (down 58% since October)

"The current consensus from Talkspace's five analysts is for revenues of $156 million in 2022, down from the previous forecast of $196 million. The leadership exodus, along with the company's disappointing quarterly results announced Nov. 15, caused the company's stock to plummet," wrote Fierce Healthcare. 

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