Intriguing IPOs: Caris Life Sciences (CAI)

Even the most scarred healthcare analyst can see some qualities in this novel diagnostic healthcare IPO.

St. Roch, Bernardo Strozzi, circa 1640, oil on canvas (Scuola Grande di San Rocco)

Certain companies become so deeply ingrained in our memories that we often make comparisons to them.

For me, in certain parts of the healthcare industry, Theranos is that codified company. Whenever I read SEC filings for a healthcare company that involves novel detection or diagnosis, my inner monologue says, “Maybe it’s another Theranos”.

It’s not fair to those companies, but I reflexively read healthcare company reports from a more defensive position than other industries. Something has to pop off the page to convince me it’s the real deal.

Enter Caris Life Sciences (NASDAQ: CAI). The company went public recently (the IPO market has been so active lately, I can’t seem to keep up). The diagnostic and testing company has developed some groundbreaking testing regimes for precision medicine.

Even though I immediately put my guard up when I started reading the IPO prospectus, there were a few things in the report that made me glance over my boxing gloves.

Let’s dig in.

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