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Tempus AI Files for Initial Public Offering

NEW YORK – Tempus AI on Monday filed documents with the US Securities and Exchange Commission for an initial public offering. 

According to its SEC document, the Chicago-based company intends to list its securities on the Nasdaq Global Select Market under the ticker symbol TEM. It has not yet priced the offering or said how many shares it plans to offer. 

Tempus' flagship technology is its Tempus Platform, which includes a technology platform to collect healthcare data and an operating system to "make the resulting data useful," the firm said in its SEC filing. The technology has allowed the company "to amass what we consider to be one of the largest libraries of clinical and molecular oncology data in the world," it added. 

The platform includes proprietary software and data pipelines with healthcare institutions that provide the company with "complex multimodal data in near real time." 

Tempus is deploying its platform in oncology and other areas, including neuropsychology, radiology, and cardiology, with the intention of eventually deploying it in all major disease areas globally. It offers a variety of services, including clinical next-generation sequencing for oncology. Tempus noted that its clinical NGS volume has risen from approximately 31,000 samples in 2018 to about 288,000 samples in 2023. 

The company's goal is to embed artificial intelligence into "every aspect of diagnostics to enable physicians and researchers to make personalized, data-driven decisions that improve patient care." 

In 2023, Tempus saw total revenues of $531.8 million, a 66 percent uptick compared to $320.7 million in 2022. In the first quarter of 2024, the firm generated $145.8 million in revenues, up 26 percent from $115.6 million in Q1 2023. The company's net loss for 2023 was $214.1 million compared to $289.8 million in 2022. For the first quarter of 2024, net loss was $64.7 million compared to $54.4 million in Q1 2023. 

The firm's three product lines are Genomics, Data and Services, and AI Applications. Genomics revenue for Q1 2024 was $102.6 million, increasing 25 percent from $82.1 million in the first quarter of 2023. The product line includes NGS diagnostics, molecular genotyping, and other anatomic and molecular pathology testing, such as the firm's xT assay, a 648-gene solid tumor cancer test, and the xF assay, a 105-gene liquid biopsy cancer test. 

The Data and Services revenue was $43.3 million in Q1 2024, rising 29 percent from $33.6 million in the year-ago quarter. Revenue generated from AI Applications was less than $1.0 million for both Q1 2023 and Q1 2024. 

The offering's underwriters are Morgan Stanley; JP Morgan Securities; Allen & Company; Bank of America Securities; TD Securities; Stifel, Nicolaus; William Blair; Loop Capital Markets; and Needham. 

In March, Tempus and Ambry Genetics announced a collaboration to offer a combined, comprehensive germline and somatic testing service. Last November, it inked a deal with Personalis to commercialize Personalis' NeXT Personal Dx minimal residual disease assay.