Cue Health rang the opening bell on the Nasdaq to celebrate its first day as a publicly-traded company on Sept. 24. The San Diego-based health technology company, which makes digital diagnostic testing solutions including a COVID-19 molecular test, raised $200 million through its IPO.
Cue listed its stock on the Nasdaq Global Select Market under the ticker symbol “HLTH” and offered 12.5 million of its common stock for $16 per share. Investors had a positive reaction on listing day, with Cue’s stock closing at a price of $20 per share.
The local biotech company’s road to listing day illustrates not only a culmination of growth for Cue, but a checkpoint in the company’s mission to develop a platform that promotes the digital transformation of healthcare.
Clint Sever, Cue Health’s co-founder and chief product officer said that they set out to build a platform for people to get information about their body and feel empowered to live healthier lives.
“We wanted to build a technology which over time can become the hub of health information,” Sever said. “Our focus has been that we want to build the platform and certainly COVID-19 accelerated our progress towards that, but ultimately this is not a COVID-19 testing company — we’re way bigger than that.”
Leading up to Listing Day
During the first half of this year, Cue Health brought in revenues of approximately $202 million and was profitable with about $32.8 million in net income, according to the company. A big driver behind Cue’s growth was its offering of the Cue COVID-19 Test for Home and Over The Counter (OTC) Use.
The Food and Drug Administration (FDA) issued an emergency use authorization (EUA) for Cue’s COVID-19 test which was the first molecular, non-prescription at-home test to get this green light.
The big differentiator for Cue’s COVID-19 test is that it’s a molecular diagnostic test that delivers results to a patient’s smartphone in about 20 minutes. Notably, Cue netted a major partnership with the National Basketball Association (NBA) and earlier this year, Google (NASDAQ: GOOGL) started using Cue’s at-home COVID-19 tests for its employees.
Additionally, Cue has received a healthy infusion of funding, approximately $481 million last year, from the U.S. Department of Defense to rapidly innovate its point-of-care coronavirus test.
IPO and Beyond
While Cue Health has grown immensely over the past year and a half, it’s not simply an overnight success story or a COVID-19 testing company making it big. Cue Health’s core technology platform is the culmination of over a decade of work.
Sever and his co-founder and Cue’s CEO Ayub Khattak started the company in 2010 during the Swine flu outbreak. He explained that building this platform ultimately builds toward their goal of making digital healthcare solutions accessible.
“This is truly a massive effort from the team and a lot of our partners within our ecosystem,” Sever said. “I think we have always believed in the sort of concept of digital transformation of healthcare…that’s been a North Star concept for us.”
The company currently has a team of 1,254 full-time employees — back in June of 2020 SDBJ reported that Cue had approximately 100 employees.
Following the company’s initial public offering, Sever said they plan on investing in further building out Cue’s team and its offerings of diagnostic tests. Beyond Cue’s coronavirus testing solutions, the company is developing tests for women’s health, sexual health and respiratory health.
CEO: Ayub Khattak
HEADQUARTERS: Sorrento Valley
BUSINESS: Health technology company that makes digital, point-of-care testing solutions
EMPLOYEES: 1,254 full-time employees
STOCK: HLTH (NASDAQ)
FUNDING: IPO raised $200 million
NOTABLE: Cue Health has partnered with major organizations such as Google and the NBA to provide their molecular COVID-19 tests.
CONTACT: Contact form on: investors.cuehealth.com