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Microsoft acquires on IPO for Adaptive Biotechnologies



Satya Nadella, CEO of Microsoft

Justin Solomon | CNBC

At the end of 2017, Microsoft invested in an experimental healthcare system called Adaptive Biotechnologies, and hopes to set its advanced cloud technology to work in life sciences while making money as a significant shareholder.

Starting Thursday, Microsoft seems to be doing both.

Adaptive, which develops what it calls an "immune medicine platform" to change how we treat various diseases, increased in the public market debate, more than doubling to over $ 40 after the company sold stock Wednesday night at $ 20 a piece . The pop means that the value of Microsoft's $ 45 million $ 1

0.67 investment is nearly quadrupled.

As the world's most valuable public company, with a market value of over $ 1 trillion, Microsoft has many ways to generate profits. Initial investment represents an avenue, although the software vendor has been far less active than many other major technology companies such as Alphabet, which has multiple risk groups for early and key deals, and Salesforce, which has been a major investor in cloud software and recently launched specific funds in Canada. , Japan and Australia.

With Adaptive, there is much more at stake for Microsoft than just an investment in the largest biotech IPO in 2019 so far. Microsoft's Azure Device, the second in cloud infrastructure market behind Amazon Web Services, will test its artificial intelligence tools in an industry that promises to be highly lucrative in the coming years as several new health-related companies turn to cloud software too heavy workload. According to Orbis Research, the global immunology market will grow to $ 74.1 billion by 2022 from $ 57.7 billion in 2015.

Adaptive has agreed to spend at least $ 12 million on Azure over seven years, according to the IPO prospect, and Microsoft is the exclusive supplier of shooting services during that period.

"We deeply believe in the potential of this partnership with Adaptive and have made a significant financial investment in the company," wrote Peter Lee, Microsoft's executive vice president for AI and research, in a blog post when the deal was announced. "We have also begun a great research and development collaboration involving Adaptive researchers working closely with our top researchers to use Adaptive's innovative sequencing technology and Microsoft's major machine learning and cloud computing capabilities to do deep reading. of the immune system to reality. "

Competition in Health

Adaptive mentions Microsoft 74 times in the prospectus. Ultimately, the two companies intend to develop a single blood test for early detection of many diseases, including cancer and autoimmune disorders. Adaptive competitors include Bristol-Myers Squibb, GlaxoSmithKline, Qiagen and Thermo Fisher Scientific. Chief Technical Officer Sean Nolan has previously worked at Microsoft, where he led the HealthVault team focusing on software for storing people's health data.

Microsoft's investment in Adaptive came months after it identified healthcare as a focal point. In April, the company hires Gregory Moore as executive vice president for health technology and alliances. Moore previously runs Google's cloud health service, and before it worked on the Geisinger health service.

AWS also prints on the market, offering tools for genomics, biotechnology, healthcare, and insurance companies. .

Brothers Chad and Harlan Robins founded Seattle-based Adaptive in 2009. The company had 346 employees at the end of March. Adaptive increased $ 300 million in IPO and topped the amount introduced by Cortexyme, Personalis, Prevail Therapeutics and other biotech companies that have debuted this year.

Microsoft has had other investment gains. The company inherited a stake in software startup Confluent through its $ 27 billion acquisition of LinkedIn in 2016, and the value of this investment has since increased dramatically. And earlier this week, Microsoft founder Bill Gates said buying a portion of Facebook before the social media company went public was "a successful investment."

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