Digital Physicians Network Doximity Files For $100 Million IPO

Healthcare technology firm Doximity is going after a $100 million initial public offering (IPO) under the ticker symbol DOCS, according to a filing with the Securities and Exchange Commission (SEC) on Friday (May 28).

The number of shares being offered and the price range for the proposed listing of Class A common stock have not yet been determined, per a company press release.

Morgan Stanley, Goldman Sachs and J.P. Morgan are joint lead book-running managers. Canaccord Genuity, Needham, Raymond James and SVB Leerink are acting as co-managers for the proposed offering.

“Doximity is an online platform for physicians that allows them to collaborate with colleagues, securely coordinate patient care, conduct virtual patients visits, read the latest medical news and research, and manage their careers,” Fierce Healthcare reported.

In 2020, the firm expanded into telemedicine and rolled out the telehealth app Doximity Dialer Video, which enables physicians to conduct video calls with patients using a smartphone.

The so-called LinkedIn for doctors, Doximity said it is allocating up to 15 percent of shares in the offering for physicians through a “reserved share program,” CNBC reported. The Silicon Valley startup has turned profits, with its net income up 69 percent in the latest fiscal year to $50.2 million. The firm has become the go-to site for physicians nationwide regarding connection, research and even recruiting, per CNBC.

Global investments in healthcare startups were at a record high in 2020, reaching some $80.6 billion. Healthcare funding also was up for three quarters in a row since the pandemic took hold in the U.S. in March 2020.

Before the pandemic, many medical practices didn’t put too much effort into digital processes, according to Colin Mellon, senior vice president of healthcare and insurance solutions at Fiserv.