Q Health, which produces Covid-1 testing babies at home, made its debut in the public market on Friday.
In April, Google began sending Covid-1 tests home to its U.S. staff at Q Health, a little-known start-up in San Diego.
Until then, most of QQ Health’s business came from an agreement with the U.S. Department of Defense to give the federal government a quick test. Google instantly became the largest private sector customer of the health-tech company.
Q Health has used that relationship to help create interesting enough stories for public market investors. On Friday, the company debuted on Nasdaq under the teaser symbol “HLTH” and the stock rose 25% to $ 20. That’s মূল্য 2.9 billion worth of Q Health.
Founded in 2010, Q Health had a small amount of revenue prior to the Kovid-1 pandemic epidemic. It has spent a good decade in research mode as a diagnostic testing company.
Everything changed in 2020, when the worst epidemic of a century suddenly made access to instant testing essential. In June 2020, the company received the first emergency use approval from the Food and Drug Administration for testing Covid-1 tests.
Q Health’s test kit includes a stick, cartridge and reader. Users use a stick to insert a nasal swab into a small box, where a reader results in a smartphone app in about 20 minutes. No processing required in the lab.
In July 2020, a month after the emergency approval, the National Basketball Association began using Q health tests for its “NBA bubble” in Orlando, where games without fans were being resumed. Three months later, according to the prospectus, “the company signed a 4 480.9 million contract with DOD to meet the unprecedented demand for rapid and accurate molecular diagnostic testing.”
Q Health Covid-1 test
The company is still operating under emergency use approval because the products have not been fully cleared or approved by the FDA.
In an interview with CNBC on Friday after the IPO, Q Health chief executive Ayub Khattak said, “We are working really hard through the epidemic.” The team “showed great determination to scale in the epidemic, which was quite a challenge.”
Khattak originally founded a company called Rubix with product chief Clint Saver. Before last year, they focused mostly on research and development.
The latest allocation for the business came from Google, a deal that was not publicly announced and was first published in a sentence in Q Health’s IPO prospectus earlier this month.
“In April 2021, the company and Google LLC entered into an agreement to supply Q Health Reader and Q Covid-1 Test kits to Google’s US-based employees by the end of the year,” the filing said.
Q said revenue in the first half of the year reached $ 201.9 million, up from $ 5 million in the same period last year. About 84% of its revenue comes from sales to the public sector. Of the remaining .. 34.8 million in revenue, 28 28.8 million was from “single enterprise customers,” Q Health said.
Khattak declined to name the customer, but people familiar with the matter confirmed to CNBC that it was Google. People asked to keep their identities secret because the information is confidential.
A Google spokesman declined to comment.
As of August, Q had sold 5 million testing kits and said it was producing cartridges at a rate exceeding 15 million a year.
“We expect our production capacity to grow at a rate equivalent to several million cu cartridges per year by 2021,” the filing said.
Q Health had to be hired to meet the demand for scaling. In 2020 the company had less than 100 employees and now has more than 1,250. In April, Glenn Wada, senior vice president of Salesforce, was appointed chief commercial officer. Khattak said that despite the technology talent competition, Q Health has been able to recruit because it is tackling such a real global problem.
Outside of Covid-119, Q Health says it is working on a number of tests that can be done using saliva, urine and blood samples and nasal swabs. These diagnostic tests will cover issues such as respiratory health, sexual health and determining the risk of chronic illness such as heart disease.
Khattak said the company expects direct-to-consumer virtual care and testing for common ailments such as strep throat.
For Google, the agreement with QHealth allows employees to order additional test strips through the company’s internal resources portal. Without the availability of office parks such as free meals or other amenities, the company has tried other ways to appeal to employees, providing resources for mental and physical health.
Google had planned to return employees to the office in September, but that date was pushed to January 10, 2022.
Khattak said the Google partnership began because his company was using the Google Cloud Platform, which competes with Amazon Web Services and Microsoft Azure. Google approached QHealth when it realized that Khattak’s team needed staff for the type of testing product it was developing.
“It was assembled at that time,” Khattak said. “We were doing everything we could to meet the needs of our customers so we certainly weren’t in outreach mode.
Their work together is deeper.
In August of this year, Q and Google Cloud began a partnership to develop real-time variants of Covid-1 of tracking and sequencing, Prospectus says.
According to the filing, their goal is to create an advanced respiratory biothritic detection system ranging from “in-house diagnostic testing to full real-time viral sequencing and analytical and predictive capabilities.”
Judging by another testing company
Q’s public debut came when Elizabeth Holmes, the founder of the inactive blood test company Theranos, faced criminal charges for her fraud and conspiracy to commit fraud. He is not guilty.
Khattak said Theranos naturally comes up in conversations, given the timing of the two events.
“It’s like a company growing in your backyard and being that kind of thing, it’s basically an issue that creates a lot more obstacles,” Khatak said. “But, we’re in a lucky position that we have a product that is widely used, there’s no black box that you don’t understand what’s going on.”
Q Health also has independent clinical studies from Mayo Clinic and has been thoroughly verified through health validation.
“We are thrilled to be able to overcome many obstacles,” Khattak said.
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