In a move that sets NantHealth up for an IPO by the end of the year, Allscripts (NASDAQ: MDRX) has purchased a 10 percent stake in the Culver City healthcare IT company for $200 million in cash. In return, NantHealth founder Dr. Patrick Soon-Shiong (pictured left) has invested $100 million in the Chicago-based company through NantCapital.
The cross-investments strengthen a partnership announced in March that will leverage Allscripts’ size, global network of hospital and physician clients, and software as well as NantHealth’s clinical platform, applications, and connectivity devices related to its Genomic Proteomic Sequencing diagnostic test to build precise,
“Allscripts has the technology and scale to become a significant player in a once-in-a-generation shift to personalized medicine,” Soon-Shiong said in a statement. “Pursuing unique and innovative partnerships such as this, which can integrate our solutions across the full spectrum of precision care, furthers our mission of building a healthcare ecosystem to drive better outcomes with the highest quality and lowest cost.”
Allscripts’ investment paves the way for a NantHealth IPO by the end of the year, Soon-Shiong told the Los Angeles Times.
Soon-Shiong is the world’s wealthiest doctor and the richest person in Los Angeles, with a net worth of $12.2 billion according to Forbes.
– LA Biz