- Tempus AI, backed by SoftBank Group, aims for a $6.10 billion valuation in its U.S. IPO.
- Led by Eric Lefkofsky, the company targets to raise $410.7 million by offering 11.1 million shares.
- Despite widening net losses, Tempus saw a 65.8% surge in revenue to $531.8 million in 2023.
- Founded in 2015, Tempus specializes in genomics diagnostics tests across various medical fields.
- Competitors include Roche’s Foundation Medicine, Guardant Health, and NeoGenomics.
- Tempus counts AstraZeneca and GSK among its notable clients and has garnered $1.42 billion in funding.
- Recent Series G-5 funding round saw SoftBank inject $200 million into Tempus.
- The company, with stakeholders like CEO Lefkofsky and investment firm Baillie Gifford, will list on Nasdaq as “TEM”.
Main AI News:
Tempus AI, the brainchild of SoftBank Group’s strategic investment, is poised to debut on the U.S. stock market with a targeted valuation of $6.10 billion. Spearheaded by Eric Lefkofsky, co-founder of e-commerce giant Groupon, the company’s impending initial public offering marks a pivotal moment in its evolution, arriving nearly three years after laying the groundwork for its market debut.
Investor sentiment will be put to the test as Tempus, despite its leadership position, is yet to achieve profitability. Nevertheless, the company’s ambitious IPO aims to raise approximately $410.7 million by offering 11.1 million shares at a price range of $35 to $37, underscoring confidence in its growth trajectory.
Based in Chicago, Illinois, Tempus witnessed a significant uptick in total revenue, surging by 65.8% to reach $531.8 million in 2023. However, its net loss widened to $289.8 million during the same period, reflecting the challenges inherent in the burgeoning field of genomics diagnostics.
Founded in 2015, Tempus emerged from a deeply personal experience when Lefkofsky’s wife battled breast cancer. Since then, the company has been at the forefront of providing genomics diagnostics tests, catering to diverse medical specialties including oncology, neuropsychiatry, radiology, and cardiology.
In a landscape teeming with competitors such as Roche’s Foundation Medicine, Guardant Health, and NeoGenomics, Tempus has carved a niche for itself, attracting prominent clients like AstraZeneca and GSK. Its robust financial backing, totaling $1.42 billion from industry stalwarts like Google, Franklin Templeton, and T Rowe Price, underscores investor confidence in its vision and potential.
Moreover, a recent infusion of $200 million in funding from SoftBank in its Series G-5 round further solidifies Tempus’ position in the market. Notable stakeholders include CEO Lefkofsky, Keeks, and investment powerhouse Baillie Gifford.
Tempus AI’s upcoming listing on the Nasdaq Global Select Market under the symbol “TEM” is poised to be a watershed moment for the company. With Morgan Stanley, J.P. Morgan Securities, and Allen & Company leading the underwriting efforts, all eyes are on Tempus as it embarks on the next phase of its growth journey.
Conclusion:
Tempus AI’s ambitious IPO, targeting a $6.10 billion valuation, signals strong investor confidence despite ongoing losses. With its innovative approach to genomics diagnostics and substantial backing, Tempus is poised to disrupt the market landscape, posing a formidable challenge to established players like Roche and Guardant Health.
