7 Things to Know About the Upcoming Cue Health (HLTH) IPO
- Nasdaq rises after strong Microsoft forecast
- Alphabet (GOOGL) Tops EPS and Revenue Estimates But Shares Dip on YouTube and Cloud Miss, Analysts See Positive Risk/Reward Despite High Expectations
- Oil drops more than 1% as U.S. stockpiles rise sharply
- Microsoft (MSFT) Stock Gains on Strong FQ1 Results and Guidance, Analysts Raise Price Targets on Azure and Windows Outperformance
- Goldman Sachs Expects Coca-Cola (KO) Stock to Outperform Today After Strong Q3 Results
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
Cue Health (NASDAQ: HLTH) is set to launch its U.S. IPO later this week. The IPO will be available for investors on the RobinHood IPO access platform, among other brokerages. The company calls itself a Healthcare 2.0 company that puts consumers in control of their health information and places diagnostic information at the center of care. Cue Health launched its first diagnostic test for use with its Cue Health Monitoring System in 2020 with its COVID-19 Test Kit. The COVID-19 test was authorized by two Emergency Use Authorizations, or EUAs, from the FDA for point-of-care and over-the-counter and at-home use. The product represents all of the company's revenue at this point. The company is looking to expand its Cue system to many other categories, including the flu.
1. Cue Health IPO Timing: Cue Health's IPO is expected on the NASDAQ on September 24, 2021. The stock will trade under the ticker 'HLTH'. Normally IPOs on the NASDAQ began trading between 10AM-2PM ET.
2 Cue Health IPO Price: Cue Health's IPO is expected to price between $15-$17 per share. This price range can be adjusted up or down and a final price will be decided the night before the IPO based on investor demand.
3. Shares Offered: Cue Health is offering 12,500,000 shares in the IPO. Underwriters will have the option to purchase another 1,875,000 shares.
4. IPO Valuation: Cue Health will have 143,748,827 shares outstanding following the offering suggesting a valuation of $2.3 billion at the mid-point and $2.44 billion at the high end.
5. Underwriters: Goldman Sachs, Morgan Stanley, and Cowen and Company will act as lead book-running managers for the proposed offering. BTIG, LLC will also act as a lead manager for the proposed offering.
6. Important Financials: Cue Health first began generating revenue from product sales in August 2020 following the receipt of its first EUA from the FDA for our COVID-19 test in June 2020. Cue Health generated approximately $201.9 million of revenue in the six months ended June 30, 2021, all of which was from product sales. Of that amount, $167.1 million, or approximately 83%, of our product revenue was from public sector entities, substantially all of which was from the U.S. DoD, with the remaining $34.8 million of product revenue generated from other customers (of which a single enterprise customer accounted for $28.9 million). For the six months ended June 30, 2021, net income was $32.8 million. In 2020 and 2019, we incurred net losses of $47.4 million and $20.6 million, respectively.
7. Future Product Offerings: While Cue Health has had only one product launch (COVID-19 test), it expects to offer tests and other products across multiple categories, including respiratory health, sexual health, cardiac and metabolic health, women's health, men's health, and chronic disease management. Besides the COVID test, the flu test is furthest along and clinical studies are expected in Q4 2021.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Rent the Runway (RENT) IPO Opens 10% Higher
- HireRight (HRT) IPO: 9 Things to Know About the Upcoming Offering
- Informatica (INFA) IPO Opens 5% Lower
Create E-mail Alert Related CategoriesIPOs, Insiders' Blog
Related EntitiesGoldman Sachs, Morgan Stanley, Cowen & Co, IPO, BTIG, FDA
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!