Chicago-based billionaire and serial entrepreneur Eric Lefkofsky has seen his health analytics and precision medicine company, Tempus AI, go public with an initial share price of $37, giving Tempus a market capitalization of $6.1 billion. Lefkofsky, the founder and CEO, holds an estimated 33% stake in the company, pushing his net worth to around $3.9 billion. Tempus is Lefkofsky’s fourth company to go public and is currently his most valuable asset, following a 2022 funding round that valued the company at $8.5 billion. The success of Tempus in the public market may pave the way for other competitors to follow suit in going public.
Founded in 2015 after Lefkofsky’s wife was diagnosed with breast cancer, Tempus initially focused on oncology by sequencing cancer patients’ tumor samples and using machine-learning models to provide personalized treatment plans. The company has since expanded into other disease areas such as neuropsychiatry, radiology, and cardiology. With over 2,000 healthcare providers and 19 of the world’s largest pharmaceutical companies as customers, Tempus aims to analyze healthcare data using artificial intelligence to personalize care across major disease areas globally. Despite incurring a loss of $214 million on $532 million in revenue in 2023, Tempus remains optimistic about its future in the healthcare industry.
Investors including Google, Softbank, and the venture capital firm Baillie Gifford have contributed over $1.3 billion in funding to Tempus since its inception. Lefkofsky’s 33% stake in the company following the public offering, along with his ownership of all supervoting shares, gives him substantial control over the company. Tempus’ ability to break even and achieve profitability in the near future will be crucial for its long-term success and sustainability in the competitive healthcare technology market. The company’s business model, which involves genomics, clinical testing services, and data analytics, is expected to drive revenue growth and potentially lead to profitability.
Tempus faces challenges in a crowded IPO market and competition from companies like Guardant Health and Neogenomics. A lawsuit filed by Guardant against Tempus alleging patent infringement adds to the regulatory hurdles faced by the company. Despite these challenges, Tempus remains focused on leveraging its data and AI technologies to expand its pharmaceutical collaborations and generate additional revenue streams. With a focus on oncology and the United States market, Tempus aims to build a strong foundation for long-term growth and sustainability.
Lefkofsky sees Tempus as a unique opportunity for him as the CEO of a company he founded at its public offering. He emphasizes the importance of building a solid foundation and focusing on specific markets to ensure long-term growth and success. As Tempus continues to grow and expand its services, including AI models for healthcare providers, Lefkofsky remains optimistic about the company’s potential in revolutionizing personalized care and healthcare data analysis. Despite the challenges ahead, Tempus’ successful IPO marks a milestone in Lefkofsky’s entrepreneurial journey and showcases the company’s potential in the healthcare technology industry.
