Omada Health, a virtual chronic care provider, made its Nasdaq debut on Friday after successfully selling approximately $150 million worth of shares in its initial public offering (IPO). The company’s stock opened at $23 and closed at the same level, having reached a high of $28.40 during the day.
The IPO priced at $19 per share, valuing Omada Health at just over $1 billion. This valuation could potentially be higher on a fully diluted basis. The company sold 7.9 million shares in the offering, as announced in a press release on Thursday.
Omada Health, founded in 2012 by Sean Duffy, Andrew DiMichele, and Adrian James, offers virtual care programs for patients with chronic conditions such as prediabetes, diabetes, and hypertension. The company is now trading under the ticker symbol “OMDA.”
This IPO marks the second digital health initial public offering in recent weeks, following Hinge Health’s debut on the New York Stock Exchange in May. Hinge Health, a digital physical therapy startup, saw its shares rise to $38.50 after being priced at $32 in its IPO.
Omada Health’s revenue saw significant growth, increasing 57% to $55 million in the first quarter from $35.1 million the previous year. For 2024, revenue rose 38% to $169.8 million from $122.8 million the year before. The company’s net loss narrowed to $9.4 million in the first quarter from $19 million a year earlier.
Major investors include U.S. Venture Partners, Andreessen Horowitz, and Fidelity’s FMR LLC, each holding between 9% and 10% of the stock. Omada Health’s CEO, Sean Duffy, expressed pride in the company’s achievement, stating that it was a “surreal moment” and that the timing felt right due to the company’s scale and the capital markets’ interest.
