2019 has been the year of the digital health IPO. Reports are now circulating that tech-enabled primary care provider One Medical could be on deck.
CNBC reports that the startup has hired JP Morgan and Morgan Stanley ahead of its IPO, according to sources "familiar with the matter." When MobiHealthNews reached out to One Medical, the company declined to comment.
One Medical is a primary care provider that lets patients access around the clock video visits with a doctor. It also lets patients see a clinician in-person at one of its brick and mortar locations. Currently, it has 72 primary care offices spread across the country. Individual patients can join the service for a yearly rate of $199 on top of their insurance or employers can purchase the service for their members.
WHY IT MATTERS
Big names in the industry like chronic care management company Livongo and digital health workflow management company Phreesia went public this year. However, during their first quarter the digital health companies that made the leap have had some ups and downs in the marketplace.
“Early public market performance for these IPOs has been mixed,” Sean Day, a researcher at Rock Health and author of Rock Health’s recent funding report, wrote in the report. “As of October 1, Health Catalyst is trading about 20% below its closing price on the first day of trading after increasing more than 20% in the weeks following its public offering. Livongo’s share price fell following its first earnings report as losses were greater than analysts expected, despite 156% revenue growth that beat Wall Street estimates. Phreesia and Change Healthcare have largely traded within +/- 10% of their offering price. And Peloton’s stock price dipped after the company went public on September 26, which some took as a sign that 2019’s hot IPO market is cooling off for the moment.”
San Francisco-based Medical One has been in the space for over a decade. In 2007, it secured its first early-stage funding from Benchmark Venture. The company now has roughly $532.1 million in funding, according to Crunchbase.
Most of the company’s moves have been expanding its services beyond California to major U.S. cities including New York, Washington, D.C., Phoenix and Chicago. Another notable move happened in 2016 when it acquired nutrition coaching app Rise for $20 million, shortly after it announced a $65 million funding round at the end of 2015.