Tempus AI, which provides data and analytics tools for precision medicine, raised $411 million by offering 11.1 million shares at $37, the high end of the range of $35 to $37. At pricing, the company commands a fully diluted market value of more than $6 billion.
Tempus mainly generates revenue from genomic testing services, offering next-generation sequencing (NGS) diagnostics, molecular genotyping and other tests used by healthcare providers, life sciences companies, researchers, and others, specializing in cancer diagnostics. Tempus also generates revenue from data and services, licensing libraries of clinical, molecular, and imaging data along with a suite of analytic and compute tools to pharmaceutical and biotech companies, in addition to data and services used in clinical trials. The company believes that its proprietary software, network of healthcare institutions and data connections, and expansive libraries of clinical and molecular data position it well for AI advancements in healthcare, while it is also developing its own AI applications.
During the 12 months ended 3/31/2024, the company generated $562 million in revenue, and had an operating loss of $196 million.
The Chicago, IL-based company plans to list on the Nasdaq under the symbol TEM. Morgan Stanley, J.P. Morgan, Allen & Company, BofA Securities, and TD Cowen acted as joint bookrunners on the deal.
