Caris Life Sciences Aims for $400M Nasdaq IPO, Highlighting Growth in Oncology Diagnostics

Caris Life Sciences, a Texas-based oncology diagnostic developer, has announced plans for a $400 million initial public offering (IPO) on the Nasdaq, potentially valuing the company at over $5.2 billion. This move comes after 17 years in business and follows a series of successful funding rounds, including nearly $170 million in venture capital earlier this year.

Rapid Growth and Expanding Test Portfolio

Caris has reported significant growth in its global clinical case volume, with a 26% increase in 2024 and a 31% rise in the first quarter of 2025 alone. The company's test portfolio includes:

• MI Cancer Seek: A recently FDA-approved companion diagnostic for genomic tumor profiling
• Caris Assure: A liquid biopsy test for treatment selection
• MI Profile: A tumor tissue sequencing platform

To date, Caris has profiled over 849,000 unique cases, conducting 6.5 million tests and generating more than 13 quadrillion datapoints. This extensive database has been built through partnerships with over 100 biopharma companies and thousands of practicing oncologists.

Financial Performance and Market Position

The company's growth is reflected in its financial results:

• 2024 total revenues: $412.3 million (up from $306.1 million in 2023)
• Q1 2025 revenues: $120.9 million

Despite this revenue growth, Caris has reported ongoing negative cash flow, with net losses of $257.1 million for 2024 and $102.6 million for Q1 2025.

David Halbert, Caris' founder and CEO, highlighted the company's use of AI and machine learning algorithms, stating, "We have utilized AI and machine learning algorithms across our dataset to identify approximately 915,000 unique pathogenic mutations, of which only approximately 17,000 were previously identified."

IPO Details and Investor Interest

Caris plans to offer 23.5 million shares on the Nasdaq under the ticker CAI, with an expected price range of $16 to $18 per share. Notably, investors affiliated with Neuberger Berman have expressed interest in purchasing up to $75 million of shares during the offering.

Post-IPO ownership is expected to be distributed as follows:

• David Halbert: 41.7%
• Sixth Street Partners: 9.8%
• J.H. Whitney: 6.8%

The company's previous backers include Sixth Street Partners, which led an $830 million fundraising round in 2021, as well as J.H. Whitney, Braidwell, Perceptive Advisors, Woodline, Ghisallo, Millennium Management, and First Light Asset Management.

As Caris Life Sciences prepares to enter the public market, its IPO represents a significant development in the oncology diagnostics sector, reflecting the growing importance of advanced genomic profiling and personalized medicine in cancer treatment.