Jul 1, 2019

Diabetes coaching startup becomes health tech's big IPO test

Livongo Health CEO Glen Tullman. Photo: Kimberly White/Getty Images for TechCrunch

Livongo, a health tech startup that provides diabetes coaching, filed papers for its initial public offering on Friday, a move that's seen as a test for how well such startups may do in public markets, Stat reports.

Between the lines: This new generation of buzzy, venture capital-backed health care companies hasn't produced an IPO since 2016. A second digital health company, Health Catalyst, filed to go public on Thursday.

  • Business Insider reported that the company could be valued at up to $2.5 billion.
  • But while it brought in $68 million in revenue last year, it posted a net loss of $33 million.

Backdrop: Livongo's main source of revenue is self-insured employers, which hire it to monitor and coach employees with chronic diseases — especially diabetes.

  • It said in an SEC filing that its services save over $1,900 a year in gross medical expenses for diabetes patients.

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Coronavirus dashboard

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  1. Global: Total confirmed cases as of 3 p.m. ET: 1,076,017 — Total deaths: 58,004 — Total recoveries: 225,335Map.
  2. U.S.: Total confirmed cases as of 3 p.m. ET: 261,438 — Total deaths: 6,699 — Total recoveries: 9,428Map.
  3. Business latest: Mark Cuban criticizes "arrogant" 3M on respirator production — The wartime mobilization effort to produce ventilators and medical supplies got started too late.
  4. Oil latest: The amount of gasoline American drivers are consuming dropped to levels not seen in more than 25 years, government data shows.
  5. Politics latest: Lawmakers on both sides of the aisle are worried about the difficulties of delivering the $2.2 trillion in stimulus aid.
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Coronavirus fuels historic drop in gasoline demand

Reproduced from EIA; Chart: Axios Visuals

The amount of gasoline American drivers are consuming dropped to levels not seen in more than 25 years, government data shows.

Driving the news: When most of us are staying home and not driving, this is one of the most predictable—but nonetheless still staggering—upshots of the unfolding coronavirus crisis.

Mark Cuban opens door to 2020 run

Photo: Axios Events

Businessman and Dallas Mavericks owner Mark Cuban revived talk of an improbable 2020 presidential bid during an Axios virtual event on Friday.

  • "Everything's a reset right now," Cuban told Axios CEO Jim VandeHei from Dallas. "If this would would've been a month ago, I would have said absolutely not. But obviously things are crazy, things are changing. So I'll keep an open mind. But I seriously doubt it."