Biotech Values

[DewDiligence]

(Theranos Part Deux?)—NantHealth IPO delayed “due to market conditions”:

http://www.latimes.com/business/la-fi-soon-shiong-ipo-20151128-story.html

Dr. Patrick Soon-Shiong…is postponing the planned initial public offering of his healthcare data company, NantHealth.

…The Nasdaq Biotechnology Index, a collection of biotech and pharmaceutical companies, has fallen 15% from a recent high in July.

… Soon-Shiong has already been stung by that downturn. NantKwest Inc., a developer of cancer therapies that he controls and is closely tied to NantHealth, has shed more than $1 billion in market capitalization since its July IPO [#msg-115731192, #msg-115733030]. Its stock surged 39% in its first day of trading…but has fallen 53% since then.

"We're basically ready. The problem is… there is no reason for us to go out there in a bear market," said Soon-Shiong, who noted that the company is "well capitalized."

…NantHealth stores medical records in the cloud and analyzes genetic information to help doctors find the best treatment for cancer and other diseases. Soon-Shiong…boasts that it can analyze the genetic data from a tumor in 47 seconds and transfer it electronically to a doctor. That information can then be used to develop a course of treatment.

However, that claim has been challenged in court. Two former NantHealth employees sued the company in Florida this year, alleging that they were fired after expressing concern that NantHealth had made fraudulent claims about the effectiveness of its products in marketing materials.

This sounds like Theranos Part Deux.