Dive Brief:
- NantHealth, founded by Dr. Patrick Soon-Shiong—the world's wealthiest doctor—plans to go public by year's end, thanks to a significant boost from IT firm Allscripts.
- Allscripts will pay $200 million for a 10% share in the company and Soon-Shiong will invest $100 million of his own wealth in Allscripts.
- Based in Culver City, California, NantHealth will combine medical data with patients' genetic information to pinpoint personalized cancer treatment. The company is valued at $2 billion.
Dive Insight:
Dr. Soon-Shiong said the Allscripts partnership was a major step towards getting the company ready to go public, which he anticipates happening this year. A strong IPO for the company would likely turn a quick profit for Allscripts, but analyst Gene Mannheimer told The L.A. Times that it could take years for the partnership to generate significant revenue.
President and chief executive of Allscripts, Paul M. Black, said both companies would benefit from the partnership. "Our joint efforts will help Allscripts lead the way in our vision of delivering precision-based medical solutions to physicians and patients," he said.