Thousands of physicians purchased stock in health IT and telehealth networking platform Doximity during its initial public offering, according to a June 24 CNBC report.
Eight things to know:
- The platform, often referring to itself as "LinkedIn for doctors," filed its initial public offering May 28. For the offering, Doximity reserved 15 percent of the shares for physicians in the network.
- Doximity co-founder and CEO Jeff Tangney said more than 10,000 physicians participated in the offering, purchasing up to $24,000 worth of shares. As a group, they own more stock than any single new investor, he added.
- Mr. Tangney said more than 80 percent of physicians are on the network and it is poised to get stronger because physicians can refer patients to other physicians internally.
- On June 18, it finalized its proposed terms for $501 million.
- "We aspire to be the world's largest physician-owned technology company, and our IPO reserved share program is intended to both thank our members and kickstart the process," Doximity co-founders Mr. Tangney, Nate Gross, MD, and Shari Buck wrote in the founders' letter portion of the IPO, according to CNBC.
- Founded in 2011, San Francisco-based Doximity has become a default site across the U.S. for physicians to connect with one another and share new research. Medical recruiters also use the site.
- Doximity is used by 1.8 million medical professionals in all of the top 20 hospitals and health systems, according to a May 28 CNBC report. The platform has more than 600 subscription customers, including 200 that spent $100,000 in fiscal year 2021.
- Doximity launched a telehealth platform in 2020 amid the COVID-19 pandemic. The company started charging for telehealth services at the beginning of January and said it has seen rapid adoption of the platform among its health system customers. However, telehealth is just a small portion of the company's revenue, the report said.