Digital health IPOs are finally coming to Wall Street, led by Livongo and Change Healthcare

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The end of the digital health IPO drought is coming, with Livongo, Change Healthcare and Health Catalyst all gearing up for the public markets.

Investors in digital health have been opening their wallets in recent years, with the promise that the coming together of devices, algorithms and consumers' growing obsession with personal health data will translate into big business.

in 2018, health-tech start-ups raised more than $8 billion, but the only significant exits came from a few acquisitions, like Roche's purchase of Flatiron Health for almost $2 billion and Amazon's $1 billion acquisition of online pharmacy PillPack. For investors to keep putting in capital, they need companies to not only go public but also to impress financially once they debut.

Digital health companies in the current IPO pipeline are different, in that they emphasize the combination of technology and services, which might include app-based behavioral coaching or nudges toward promoting healthy behavior.

 

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