Primary Care Startup One Medical Goes Public

The San Francisco-based primary care startup began trading on the Nasdaq Friday morning.

One Medical, a San Francisco-based primary care startup, made its debut on the Nasdaq Friday morning.

One Medical is trading under the ticker name "1Life Healthcare Inc." and issued its stock at $14 per share, at the bottom of its projected range.

The company is offering 17.5 million shares of stock and expects to generate gross proceeds of $245 million.

One Medical is a direct primary care provider that currently services around 400,000 members across nine markets, with plans to expand to three additional markets this year, according to its S-1 filing with the Securities and Exchange Commission earlier this month.

In S-1 filings, companies must provide a comprehensive overview of business operations, including any potential risk factors to the enterprise as it prepares to be publicly traded.

Among the concerns listed by One Medical about its business model were declining numbers of members with private health coverage, failing to meet third-party partner expectations, and abiding by HIPAA regulations.

The company reported $212.6 million in net revenue at the end of 2019, though losses from operations totaled $45 million. In October, CNBC reported that One Medical was valued at $1.5 billion during its latest financing round last year.

One Medical is backed by major investors, including the Carlyle Group and Alphabet. Google, which is a subsidiary to Alphabet, is an enterprise client that accounted for 10% of One Medical's total revenue in 2018.

Two weeks before its Wall Street debut, One Medical announced a partnership with Partners Healthcare to expand primary care options in the Boston market.

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.

Photo credit: Photo courtesy of Nasdaq