Tempus AI Raises $410 Million in IPO

Today Tempus AI raised $410 million in an IPO. Chicago-based Tempus provides AI and data and analytics tools for precision medicine across oncology, neuropsychiatry, radiology and cardiology. More than 7,000 physicians in 2,000 hospital systems, including 65% of all academic medical centers in the U.S., use Tempus' platform. The company collaborates with many of the largest pharma companies including Pfizer, GSK, and AstraZeneca. The company, which employs about 2,300 people, generated $532 million in revenue in 2023. Tempus raised $1.3 billion in funding over nine funding rounds and its valuation was reported to be $8.1 billion in 2023. Tempus acquired AKESOgen, Highline Sciences, and Arterys over the past 5 years. Investors include Google, Baillie Gifford, Franklin Templeton, NEA, and T. Rowe Price.

IPO Highlights

1. Tempus filed for an IPO with the SEC on May 21, 2024.
2. Today, Tempus announced 11,100,000 shares of its Class A common stock at a public offering price of $37 per share.
3. The stock opened at $40 per share compared to the IPO price of $37 per share
4. All of the shares of Class A common stock were offered by Tempus.
5. The gross proceeds to Tempus from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Tempus, are expected to be $410.7 million.
6. In addition, Tempus has granted the underwriters a 30-day option to purchase up to an additional 1,665,000 shares of its Class A common stock at the initial public offering price, less underwriting discounts and commissions. 
7. The shares are expected to begin trading on the Nasdaq Global Select Market today, June 14, 2024, under the ticker symbol “TEM”.
8. The offering is expected to close on June 17, 2024, subject to the satisfaction of customary closing conditions. 
9. Morgan Stanley, J.P. Morgan, and Allen & Company LLC are acting as lead book-running managers for the proposed offering.
10. BofA Securities and TD Cowen are acting as additional book-running managers; and Stifel, William Blair, Loop Capital Markets, and Needham & Company are acting as co-managers for the proposed offering.

"We endeavor to unlock the true power of precision medicine by creating Intelligent Diagnostics through the practical application of artificial intelligence, or AI, in healthcare. Intelligent Diagnostics use AI, including generative AI, to make laboratory tests more accurate, tailored, and personal. We make tests intelligent by connecting laboratory results to a patient’s own clinical data, thereby personalizing the results.” 

About Tempus AI

Tempus is advancing precision medicine through the practical application of AI in healthcare. The mission is to help make sure patients are on the right drug at the right time, so they can live longer and healthier lives. With one of the world’s largest libraries of multimodal data, and an operating system to make that data accessible and useful, Tempus provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. Tempus built out capabilities in precision medicine and AI to power drug discovery and genomic sequencing. The goal is for each patient to benefit from the treatment of others who came before by providing physicians with tools that learn as the company gathers more data.

Tempus was founded in August of 2015 by Eric Lefkofsky, after his wife was diagnosed with Breast Cancer. Prior to founding Tempus, Lefkofsky was co-founder of Groupon. Shortly after he founded Tempus, he convinced Ryan Fukushima to join as the company’s first employee in an effort to bring the power of technology and AI to cancer care. Ryan and Eric began assembling a world class team, focused on building the first version of a platform capable of ingesting real time healthcare data in an effort to personalize diagnostics. Tempus initially built their platform for oncology and then expanded it to neuropsychiatry, cardiology, infectious disease, and radiology.

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Copyright © 2024 Margaretta Colangelo. All Rights Reserved.

This article was written by Margaretta Colangelo. Margaretta is a leading AI analyst who tracks significant milestones in AI in healthcare. She consults with AI healthcare companies and writes about some of the companies she consults with. Margaretta serves on the advisory board of the AI Precision Health Institute at the University of Hawaiʻi Cancer Center @realmargaretta