SOPHiA GENETICS celebrates successful IPO after raising $234M

SOPHiA GENETICS, NASDAQ ($SOPH), valued at $1.14 billion, is one of the largest European Unicorns to go public. The Lausanne based company sold 13 million shares for $18 per share, the midpoint of its range. J.P. Morgan, Morgan Stanley, Cowen and Credit Suisse backed the listing. After the offering, there were 63,338,111 outstanding shares (excluding the over-allotment option) at $18 per share. By Monday morning, its share prices had dropped slightly, trading at $17 each. According to Pitchbook, the company is also in talks to receive $20 million of development capital from Instrumentarium Holdings through a private placement as of July 2, 2021.

The net proceeds from the offering will be used for working capital and facilitate corporate activities such as research & development, expanding the selling and marketing efforts, and establishing new, maintaining, and growing existing relationships with collaborators and customers across the healthcare system. The capital will also allow the company to obtain regulatory clearances or approvals to offer our products as IVD products for diagnostic use.

Following the IPO, James Wise, Partner at Balderton Capital has stepped down as a board member and will be replaced by Kathy L. Hibbs. Kathy is an accomplished healthcare technology executive and is currently the Chief Legal and Regulatory Officer at the consumer genetics company 23andMe.

Based in Lausanne and Boston, SOPHiA GENETICS has been offering its cloud-based Software-as-a-Service platform — the SOPHiA DDM™ platform since 2014. The platform enables healthcare institutions to get quick, robust insights from their data. The company applies their technology to diseases such as cancer and inherited disorders, where combining genomic and phenotypic information is vital to support discoveries, treatment decisions, and drug development efforts. Today, the platform has analysed more than 770,000 genomic profiles for customers from over 780 institutions in over 70 countries. As of June 30, 2021, the company had approximately 365 recurring SOPHiA platform customers.

Last year, SOPHiA reported $28.4 million in revenues, representing 12% year-over-year growth since 2019 ($25.4 million). Since its inception, the company has incurred $39.3 million and $33.8 million net losses in 2020 and 2019, respectively. In October 2020, the company closed a $110 million round led by Israeli-based investor aMoon and Japanese conglomerate Hitachi, Ltd.'s venture arm. Earlier this month, struck a deal with GE's health care unit.