Summary:
Hinge Health and Omada Health have successfully gone public, sparking hope for other digital health startups.
Nine healthcare startups, including Aledade and Lyra Health, are identified as potential IPO candidates.
Market uncertainties may delay some IPOs until 2026 or later, but recent successes signal a positive trend.
Datavant and Transcarent have made significant acquisitions, hinting at IPO preparations.
The digital health sector is seeing a resurgence, with mental health and value-based care startups leading the charge.
The Digital Health IPO Revival
After a prolonged hiatus, the digital health sector is witnessing a resurgence in public market activity. Hinge Health and Omada Health have recently made successful public debuts, reigniting interest in healthcare startups. Bankers and investors have identified nine startups that could be next in line for an IPO, signaling a potential wave of public offerings in the near future.
Key Players in the Pipeline
- Aledade: Focused on value-based care, Aledade has raised $660 million and works with over 2,400 practices. Its high revenue and profitability position it as a strong IPO candidate.
- Datavant: With a $7 billion valuation from its merger with Ciox Health, Datavant's recent acquisitions hint at IPO preparations.
- Lyra Health: The mental health giant, valued at $5.58 billion, is under new leadership with public market experience, potentially paving the way for an IPO.
- Medline: A veteran in medical supplies, Medline's confidential S-1 filing suggests an impending public offering, possibly valuing the company at up to $50 billion.
- Maven Clinic: Specializing in women's and family health, Maven's recent executive hires with IPO experience indicate its public market ambitions.
- Spring Health: This AI-powered mental health startup, valued at $3.3 billion, is expanding its services and could be a prime candidate for an IPO.
- Transcarent: Following its acquisition of Accolade, Transcarent's expanded customer base and $2.2 billion valuation make it a contender for a public listing.
- Virta Health: With a focus on diabetes and obesity care, Virta's growth and profitability goals align with IPO readiness.
- Zelis: A stable player in healthtech software, Zelis's strong economics and recent capital raise position it well for a future IPO.
Market Conditions and Future Outlook
Despite the optimism, market uncertainties persist, with many startups eyeing 2026 or later for their IPOs. The success of recent debuts, however, offers a glimmer of hope for the sector's revival.
Kyle Armbrester, CEO of Datavant, a potential IPO candidate.
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