Tempus AI Inc. is about to offer investors a way to make money at the point where AI and medicine meet.
Healthtech company Tempus TEM, which was founded in 2015, wants to sell 11.1 million shares for $35 to $37 each. At the high end of that price range, the company could raise just over $410 million.
Tempus’s technology tries to make lab tests more personalised by looking at results along with other medical data about a patient. In its prospectus, the company said, “Our goal is to embed AI, including generative AI, into every aspect of diagnostics so that doctors and researchers can make personalised, data-driven decisions that improve patient care.”
The company also thinks it is in a special place in the healthcare field. As Tempus said in the filing, “Unlike traditional diagnostic labs, we can use unique patient information like clinical, molecular, and imaging data to make our tests smarter and our results more insightful.” “We are not like other tech companies because we have a deep history in clinical care delivery as one of the largest sequencers of patients in the US.”
In 2023, Tempus made $531.8 million, which is more than the $320.7 million it made in 2022. It made $145.8 million in sales in the March quarter, up from $115.6 million in the same quarter last year.
Losses got smaller over the past year, but they got bigger in the most recent quarter. In 2023, Tempus had a net loss of $214.1 million, down from $289.8 million the previous year. Instead of making $54.4 million in the first quarter of 2023, it lost $64.7 million in the March quarter of 2024.
The founder of the company, Eric Lefkofsky, is also the CEO. He helped start Groupon Inc. in the past.
Tempus wants to go public on the Nasdaq. Their ticker symbol will be “TEM.”
