Patrick Soon-Shiong’s health care IT firm NantHealth announced Tuesday that electronic medical records provider Allscripts Healthcare Solutions Inc. has taken a 10 percent stake in the Culver City company for $200 million, valuing NantHealth at $2 billion.
Soon-Shiong in turn invested $100 million in the Chicago firm through NantCapital, his personal investment vehicle.
The billionaire researcher and investor said that although his NantHealth stake has been diluted, he remains the majority shareholder in NantHealth, adding that another announcement about NantHealth’s global infrastructure was due in the coming weeks.
“And then,” Soon-Shiong said, “I feel pretty confident we will be ready go public before year’s end.”
NantHealth aims to use patients’ genetic information to craft personalized cancer treatment plans. The firm wants to enable patients, physicians, payers and others to coordinate this care, provide access to clinical trials, monitor outcomes and control costs in real time.
The Allscripts deal builds on a strategic partnership the two firms formed in March to develop such an integrated, personalized approach to health care.
Soon-Shiong said he liked how Allscripts had integrated its services into the health system as well as the firm’s footprint in Singapore and the United Kingdom.
NantHealth has garnered hundreds of millions in funding from diverse investors including the Kuwait Investment Authority sovereign wealth fund, pharmaceutical giant Celgene Corp. and smartphone-maker BlackBerry Ltd.
Soon-Shiong said he’s been incubating NantHealth for more than a decade, keeping it under wraps until it’s ready to be launched on a large scale.
“It’s how I did it with APP and Abraxane, and now I’m launching NantHealth that way and also taking Conkwest public,” Soon-Shiong said of the clinical stage immunotherapy developer, which has filed for a $172 million initial public offering. He’s chief executive of the Cardiff-by-the-Sea firm as well as majority shareholder.