Skip to content Skip to navigation

Castlight IPO Flies Out of the Gate

March 14, 2014
by Gabriel Perna
| Reprints
Click To View Gallery


In its first day of public trading, shares for Castlight Health, a San Francisco-based provider of an application that allows consumers of healthcare to compare doctors, rose an impressive 138 percent percent to $38.25 from the initial price of $16.
The stock price reached as high as $41.25 during the first day of trading on the New York Stock Exchange under the ticker CSLT.
Castlight sold 11.1 million initial shares of the stock following the offering, which raised $178 million for the company. In addition, the company granted the underwriters a 30-day option to purchase up to 1,665,000 additional shares of Class B common stock from Castlight Health at the initial public offering price.
"We're doing this financing in order to meet the demands of our rapidly growing customer base of more than 100 enterprises and to continue to innovative on our technology platform, which we call the Enterprise Healthcare Cloud," CEO Giovanni Colella, M.D., said to USA Today
Castlight was founded in 2008 by Todd Park, the chief technology officer of the U.S. and former CTO of the Department of Health and Human Services (HHS), and co-founder of EHR vendor, athenahealt. Over the past few years, Castlight received several rounds of venture capital; in 2012, it raised $100 million.
Castlight was named by noted healthcare economist Uwe Reinhardt, Ph.D. as one of the companies that is changing the way consumers interact with healthcare organizations in regards to pricing. It was named as one of the top VC funded companies by The Wall Street Journal in 2011.


Survey: Healthcare Orgs Not Taking Mobile Security Seriously Enough

More than half (56 percent) of healthcare professionals believe their organization could be doing more to educate employees on HIPAA compliance and the rules around sharing protected health information.

Mount Sinai’s Research Arm Using Data Analytics to Address Health Inequities

The Arnhold Institute for Global Health at the Icahn School of Medicine at Mount Sinai is partnering with DigitalGlobe to create the Health Equity Atlas Initiative (ATLAS), a platform that standardizes and maps population data in order to generate insights that address health inequities.

FDA, Hospitals Work to Improve Data Collection about Medical Devices

The U.S. Food and Drug Administration is looking to improve the way it works with hospitals to modernize and streamline data collection, specifically safety data, about medical devices.

McKesson Unveils New Paragon Electronic Health Record Platform

McKesson Enterprise Information Solutions (EIS) announced the latest release of Paragon, its electronic health record (EHR) solution.

Catholic Health Initiatives and Dignity Health are in Merger Talks

Englewood, Colorado-based health system Catholic Health Initiatives is in merger talks with San Francisco-based Dignity Health to potentially create one of the largest nonprofit health systems by revenue in the country.

OSU Wexner Medical Center Receives AHIMA Grace Award

The Ohio State University Wexner Medical Center (OSUWMC) received the American Health Information Management Association (AHIMA) annual Grace Award in recognition of its leadership in health information management.