The IPO Buzz: Cancer-Focused Tempus AI (TEM Proposed) Leads $616 Million Week

Tempus AI (TEM Proposed), known for its proprietary AI-driven healthcare data platform, leads the IPO Calendar for the second week of June with its $400 million IPO. The cancer-focused genomics testing and data company’s IPO – backed by SoftBank Corp. of Japan – is the only big IPO on this week’s lineup. Australia’s commercial-stage biotech company, Telix Pharmaceuticals Ltd. (TLX Proposed), is set to raise about $202 million with its NASDAQ uplisting. Two micro-cap IPOs round out this week’s calendar. Wall Street’s focus is on Tempus AI, founded in 2015 by venture capitalist Erik Lefkosky. He was inspired to create Tempus during his wife’s treatment for breast cancer, according to Reuters. (Her treatment was successful.) Lefkosky is the managing member of VC firm Lightbank LLC, which he co-founded in 2008. That same year, he launched the e-commerce coupon marketplace Groupon, which he also co-founded. Lefkosky, the CEO of Tempus AI, is also the biggest shareholder. He owns 39.1 percent of the Class A common stock and 100 percent of the Class B (voting power) stock before the IPO for a combined pre-IPO stake of 72.2 percent of the outstanding stock, the prospectus says. After the IPO, Lefkosky will still control Tempus AI with a combined stake of 65.3 percent – consisting of 30.5 percent of the Class A stock and 100 percent of the Class B (voting power) stock, according to the prospectus. Tempus AI, based in Chicago, is offering 11.1 million shares at a price range of $35.00 to $37.00 to raise $399.6 million – if priced at the $36.00 mid-point. At the price, Tempus AI would have a market cap of $5.94 billion. Morgan Stanley, J.P. Morgan,  Allen & Company are leading the joint book-runners’ team, which includes BofA Securities, TD Cowen, Stifel and William Blair. Tempus AI  says its proprietary Tempus Platform has resulted in the accumulation of “what we consider to be one of the largest libraries of clinical and molecular oncology data in the world,” according to the prospectus. “Tempus is a technology company focused on healthcare that straddles two converging worlds,” the prospectus says. “We strive to combine deep healthcare expertise, providing next-generation diagnostics across multiple disease areas, with leading technology capabilities, harnessing the power of data and analytics to help personalize medicine.” Genomics Testing, Data and AI Tempus describes its business as organized along three product lines: genomics, data and services, and AI applications. “Our Genomics product line leverages our laboratories to provide NGS diagnostics, PCR profiling, and other anatomic and molecular pathology testing to healthcare providers, life sciences companies, researchers, and other third parties,” the prospectus says. “However, unlike other laboratory diagnostic testing providers, many of our tests are connected to clinical data in some manner, which allows our suite of tests to be self-learning and become more accurate with each new test that we run. “Our Data and Services product line facilitates drug discovery and development for life sciences companies through two primary products, Insights and Trials,” the prospectus says. “Through our Insights product, we license de-identified libraries of linked clinical, molecular, and imaging data and provide a suite of analytic and cloud-and-computer tools to pharmaceutical and biotechnology companies. Our second product within our Data and Services product line, Trials, leverages the broad network of physicians we work with in oncology to provide clinical trial support for pharmaceutical companies that are looking to reach hard-to-find and underserved patient populations. “Our third product line, AI Applications, is focused on developing and providing diagnostics that are algorithmic in nature, implementing new software as a medical device, and building and deploying clinical decision support tools. The primary product of AI Applications is currently “Next,” an AI platform that leverages machine learning to apply an “intelligent layer” onto routinely generated data to proactively identify and minimize care gaps for oncology and cardiology patients. As this product gains adoption, we intend to leverage large language models, generative AI algorithms, and our vast database of de-identified data to develop algorithmic diagnostics designed to identify these patients earlier in their disease progression, when treatments are most effective.” Tempus AI is not profitable. For the 12 months that ended March 31, 2024, Tempus AI reported a net loss of $224.48 million on revenue of $562.02 million, according to financial statements in the prospectus. Stay tuned. (For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.) Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board. To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message. 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