Caris Life Sciences, an AI-driven precision oncology company, is targeting a $5.35 billion valuation in its U.S. initial public offering, aiming to raise up to $423.5 million.
The Irving, Texas-based firm, backed by investment giants Sixth Street and Neuberger Berman, has already conducted 6.5 million molecular tests across 849,000 patient cases, establishing partnerships with over 100 biopharmaceutical firms, including Moderna Inc MRNA and AbbVie ABBV, according to its prospectus filed with the U.S. Securities and Exchange Commission.
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Valuation Context and Financial Performance
The $5.35 billion target—based on 23.5 million shares priced between $16 and $18 each—marks a notable shift from Caris' 2021 private valuation of $7.83 billion, Reuters reported, reflecting both market recalibration and the challenges of commercializing precision medicine.
According to its filing, Caris generated $412.3 million in revenue in 2024—a 35% year-over-year increase—while posting a net loss of $257.1 million. In Q1 2025, the company reported $120.9 million in revenue and a narrowed net loss of $127 million, compared to $80.7 million in revenue and a $134.1 million loss during the same period in 2024, according to its filing—signaling improving margins and sustained top-line growth.
At its proposed valuation, Caris would trade at approximately 13 times sales, a premium to peers like Guardant Health GH and Tempus AI TEM, Reuters reported.
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Technology and Competitive Edge
According to the company's website, Caris was founded in 2008 by entrepreneur David D. Halbert, who was inspired by his father's cancer battle to develop more effective, data-driven diagnostics. Today, the company operates from its North Texas headquarters and has offices in Phoenix, New York, Cambridge, Massachusetts, Tokyo, Japan, and Basel, Switzerland, serving both U.S. and international markets.
Caris' proprietary AI platform, which integrates molecular science with machine learning, analyzes comprehensive genomic, transcriptomic, and proteomic data to guide cancer treatment. The company holds 27 issued patents along with over 170 applications pending worldwide, according to its website. Its flagship MI Cancer Seek test, cleared by the U.S. Food and Drug Administration in 2023, detects early-stage malignancies with what the company claims is unmatched accuracy, the company said at the time.
Investor Sentiment and Sector Implications
Caris will trade on the Nasdaq under the symbol CAI The offering is led by BofA Securities, J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, and Citigroup Global Markets. Grand View Research projects a 22.5% CAGR in the AI cancer diagnostics market through 2030, highlighting strong growth potential in this sector.
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Neuberger Berman has indicated it may purchase up to $75 million worth of shares in the IPO—signaling insider confidence in the company's long-term potential, according to Reuters.
Regulatory and Market Risks
Caris Life Sciences currently has one FDA-cleared diagnostic test, MI Cancer Seek, according to its filing.
Caris' pipeline includes investigational tools like FOLFIRSTai, an AI-based test for predicting chemotherapy response in metastatic colorectal cancer. While clinically validated, it remains unapproved by the FDA, according to the SEC filing, and stricter regulations could delay its commercialization.
Conclusion: A Litmus Test for AI Biotech
Caris's proposed IPO is drawing attention as a potential marker for the viability of AI-driven healthcare, with Reuters noting the offering comes amid renewed interest in precision diagnostics.
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