Cue Health, a US-based diagnostic testing technology developer backed by marketing firm Dentsu, chemical and energy group Koch Industries and pharmaceutical firm Johnson & Johnson, has filed for an initial public offering.
The company has set a $100m placeholder target for the IPO, which is set to be held on the Nasdaq Global Market.
Cue Health was founded in 2010 and is working on portable diagnostic testing devices for a variety of diseases including covid-19. The company’s devices use swappable cartridges and can connect to a mobile app.
The business reported $202m in revenue for the six months ending June 2021 compared to $5m in the same period in 2020.
Cue Health plans to use the proceeds to develop its technology, scale its manufacturing facilities and capabilities as well as fund research and development activities and clinical studies. The capital will also support recruitment and training for sales and marketing staff.
Cue Health has raised approximately $404m of equity funding to date. It received $235m in May this year from investors including Johnson & Johnson Innovation – JJDC and Koch Strategic Platforms, representing Johnson & Johnson and Koch respectively. That round was also joined by Perceptive Advisors, MSD Capital, Decheng Capital, Cavu Ventures, Acme Capital and unnamed additional investors.
Johnson & Johnson Innovation – JJDC also backed Cue Health’s $100m series C round in June 2020, which featured Decheng Capital, Foresite Capital, Madrone Capital Partners, Acme Capital and unspecified investment firms.
Dentsu Ventures, the corporate venturing arm of Dentsu, contributed to a $45m series B round in 2018 investing alongside Johnson & Johnson Innovation – JJDC, Section 32, Synergy Ventures, Principles of Tarsadia Investments, Pritzker Group Venture Capital, Babel Ventures, Troy Capital, Acme Capital (then known as Sherpa Capital), Cove Investments and private backer Rohan Oza.
Cue Health collected $15.5m in a 2017 round featuring Cavu Venture Partners and Sherpa Capital, following a capital injection of undisclosed size from Dentsu Ventures in 2015. The company previously raised just over $8.5m from investors including Sherpa Capital and Immortalana.
The company’s largest shareholders include ACME Capital, which holds a 13.2% stake, followed by Cove Investors (11%), Decheng Capital (7.3%), Madrone Capital (6.3%) and Tarsadia Investments (6.1%).
Cue Health has appointed Goldman Sachs, Morgan Stanley, Cowen and BTIG as underwriters for the offering.