Tempus AI, a genetic testing company backed by SoftBank Group, saw its shares surge 8.1% in their Nasdaq debut on Friday, closing with a market valuation of $6.6 billion. The stock opened at $40 per share, higher than its initial public offering (IPO) price of $37, indicating strong investor interest.
Founded in 2015, Tempus AI specializes in AI-based genomics diagnostics across fields such as oncology, neuropsychiatry, radiology, and cardiology. The company was established a year after CEO Eric Lefkofsky’s wife was diagnosed with breast cancer, driving its mission in medical diagnostics.
The IPO raised $410.7 million, pricing shares at the upper end of its targeted range of $35 to $37. Major investors in Tempus AI include Alphabet’s Google, Franklin Templeton, and T Rowe Price, reflecting confidence from notable financial backers.
Tempus AI’s clientele includes prominent pharmaceutical companies like AstraZeneca and GSK, positioning it in competition with industry leaders such as Roche’s Foundation Medicine and Guardant Health, the latter of which recently filed a lawsuit alleging patent infringement against Tempus AI.
The successful market debut of Tempus AI underscores growing investor enthusiasm for AI-focused firms, buoyed by recent successes in the U.S. capital market, including notable IPOs by Chinese EV firm Zeekr and social media platform Reddit.
The offering was managed by top Wall Street firms including Morgan Stanley, J.P. Morgan, and Bank of America Securities, underscoring the broad financial support behind Tempus AI’s entry into public trading.
As AI continues to shape advancements in medical diagnostics and genetic testing, Tempus AI stands poised to leverage its technology and investor confidence to drive further growth in the healthcare sector.
