In July, NantHealth indicated plans to file an initial public offering by the end of the year, but founder Patrick Soon-Shiong, MD, has decided to hold off due to current market conditions, according to a Los Angeles Times report.
"We're basically ready. The problem is, we don't want to go out in the current market. There is no reason for us to go out there in a bear market," Dr. Soon-Shiong said in the report.
The biotechnology market is currently on a downward swing, as stocks are falling as there are increased calls for governmental regulations on drug pricing, according to the report. For example, the LA Times indicates the Nasdaq Biotechnology Index, a collection of biotech and pharmaceutical companies, reached a high point in July but has fallen 15 percent since then.
Additionally, IPO research firm and fund manager Renaissance Capital reports more than half of new public companies traded below their offering price this year.
Kathleen Smith of Renaissance Capital told the LA Times it is probably best for Dr. Soon-Shiong to hold off on filing the IPO. "We don't have any enthusiastic set of public buyers for IPOs," she said in the report. "Public investors are wanting very low valuations. They won't come in unless they're getting a discount."
More articles on health IT:
Health IT in 2015: 10 CIOs on the highs and lows
EHRs around the world: 4 findings from KLAS
5 things to know about the GE Health Cloud