Cue Health Raises $200 Million in IPO At $2.3 Billion Valuation

The creator of an app-connected health monitoring device system, Cue Health raised $200 million in its IPO.

The company has offered 12.5 million shares, priced at $16 each. It is currently trading on the Nasdaq, under the ticker “HLTH.”

Founded in 2010, Cue Health has raised $235 million from private investors including, Perceptive Advisors, MSD Capital, Koch Strategic Platforms, Johnson & Johnson Innovation (JJDC), Decheng Capital, CAVU Ventures, ACME Capital.

Cue Health’s connected health monitoring system delivers a broad range of tests through one system. The system enables people to manage their health through real-time, actionable and connected health data. It also offers individuals, and healthcare providers access to lab-quality diagnostic testing at home, at work, or the point of care, through an app-connected device that fits in the palm of a hand.

Cue Health’s Covid-19 test- consisting of a swab, test cartridge, and battery-operated reusable reader about the size of a smartphone – delivers test results in around 20 minutes and automatically uploads them to a mobile app. It’s used by many customers, including the Mayo Clinic, the Pentagon, and the Iditarod race in Alaska.

The company’s health monitoring system is currently used for COVID-19 testing in enterprises, schools, nursing homes, hospitals, physicians’ offices, dental clinics, sports leagues, live event venues, hotels, federal and state agencies, and other settings in the U.S. The company works with the Biomedical Advanced Research and Development Authority, known as BARDA, on its flu test and entered into a $481 million contract with the U.S.

Cue Health and Google, in April 2021, agreed to provide test kits and readers to Google’s U.S.-based employees through year-end. In the first half of 2021, revenue reached $201.9 million, up from $5 million in the same period of the earlier year, with more than 80% of its revenue coming from sales to the public sector, while $28.9 million was from a single undisclosed enterprise customer.

Digital Health companies raised $15 billion in the first half (1H) of 2021. Funding activity increased by 138% during 1H 2021, compared to $6.3 billion raised in 1H 2020, according to the latest Mercom Digital Health Funding and M&A Report.