There were 20 digital health companies that went public in 2021. In 2022, there were two, only one of which listed on an American-based stock exchange, Modern Healthcare reports.
The one company that went public in the U.S. exemplifies why other digital health firms are shying away from going down this same path. Boston-based prescription video game company Akili Interactive launched an initial public offering Aug. 23 through a special purpose acquisition company, Social Capital Suvretta Holdings. The stock opened at $36.06 per share and closed at $7.15 per share on its first trading day. Monday, it closed at $1.05. Other digital health companies that went public in the last few years have suffered similar fates.
Industry watchers blame a challenging macroeconomic environment along with investor uncertainty on digital health business models and said late-stage private companies should use the pause to strengthen their business. Read more.
