Allscripts invests $200M in Soon-Shiong’s NantHealth in software integration deal (updated)
By NEIL VERSEL
Post a comment / 61 Shares / Jun 30, 2015 at 1:33 PM
Dr. Patrick Soon-Shiong
Electronic health records vendor Allscripts Healthcare Solutions has bought a 10 percent equity stake in NantHealth, the health IT arm of Dr. Patrick Soon-Shiong’s empire, for $200 million, while another Soon-Shiong company has bought $100 million worth of stock in Allscripts.
The deal, announced Tuesday, extends a partnership first disclosed in March, in which the two companies agreed to share technology in developing more personalized cancer treatments.
Chicago-based Allscripts paid cash for its 10 percent stake in NantHealth, the two companies said. Soon-Shiong bought into Allscripts via his personal investment vehicle, NantCapital, part of his burgeoning NantWorks conglomeration.
The Los Angeles Times reported that the cross-investment, which values Culver City, Calif.-based NantHealth at $2 billion, closer to a planned initial public offering later this year. “We feel we have one or two transactions to accomplish, then we will initiate the public offering that we anticipate will happen probably within this year,” Soon-Shiong reportedly told the Times.
NantHealth and Allscripts said that they would jointly integrate their software via application provider interfaces, including placing dashboards to NantHealth databases and analytics engines into Allscripts EHRs. For example, NantHealth will make its Eviti cancer-specific clinical decision support technology available through Allscripts front ends, NantHealth President Robert Watson said in an interview with MedCity News.
The two companies also plan on developing several specific pieces of technology: an ontology and industry standard for cross-clinical usage of a NantHealth-developed test known as GPS Cancer (GPS stands for genomic-proteomic sequencing); invitations for GPS Cancer sequencing delivered to specific patients through Allscripts’ FollowMyHealth portal; and a new product for accountable care organizations that promotes semantic interoperability.
“We believe that our GPS Cancer test should become a standard of care,” Watson said. It takes the kind of access to hospitals and cancer centers that Allscripts has to make it happen, Watson explained.
The test is more comprehensive than others on the market, Watson said, in that it takes into account the full genome and full exome, not just a small subset of pairs.
In a press release, Allscripts President and CEO Paul Black said:
“We’re taking an important step forward in our strategic partnership that fully aligns our resources and furthers Allscripts’ strategy to invest in new technologies that can revolutionize service to hospitals and physicians. Under the leadership of Dr. Soon-Shiong, NantHealth is pioneering extraordinarily innovative, personalized healthcare solutions that will empower more efficient and effective clinical decisions. We’re confident that our joint efforts will help Allscripts lead the way in our vision of delivering open, integrated and precision-based medical solutions to physicians and patients
============== Prior Blog Post =======
Remember Dr. Patrick Soon-Shiong and NantHealth?
He is the LA billionaire I met in 2013. I was saying “watch him make his next move” in 2013 when he came to Coke and showed a vision of how he wanted to revolutionize health care. I drove in a car with him to see if he could use some of his genomic knowledge to help my friend John Farrell live (it was too late but he really tried hard and I came to respect him as a physician and oncologist).
His vision them was for a revolution in health care based on breathtaking new genomic understandings, including how genes changed over time, combined with revolutionary new home appliances that would record cloud-based data relevant to your personal health, e.g. a scale that recorded weight and pill bottles that recorded compliance with medications.
In any event ….
Take a look at his investors – – – $320 million so far, from elite players:
I’m reminded of what Dr. Patrick Soon-Shiong is doing with NantHealth, which is a lot more opaque other than the approximate $320M of private equity money invested to date by Sovereign Wealth Fund, Kuwait Investment Authority, Verizon, Celgene, Blackberry, and Blackstone.