IPO Success in the Digital Health Sector

Omada Health Inc. (“Omada”), a California-based virtual chronic care provider founded in 2012, recently completed an initial public offering (“IPO”) and commenced trading on the Nasdaq under the ticker symbol OMDA. The IPO was priced at US$19 per share, which was the midpoint of its marketed range. On the first trading day, shares opened at US$23, climbed to US$28, and closed at US$23, maintaining a 21% increase over the IPO price. Through the offering, Omada sold a total of 7.9 million shares, raising approximately US$150 million.

The IPO validated CEO Sean Duffy’s decision to leave medical school and start Omada with the goal of offering continuous support for people managing chronic conditions such as diabetes, obesity and high blood pressure. The company’s “between-visit” care model offers continuous support to patients outside of traditional medical appointments by connecting them with a virtual care team, ensuring ongoing management of chronic conditions.

Omada’s listing came shortly after the successful IPO of Hinge Health Inc. (Nasdaq: HNGE), another California-based digital health provider specializing in musculoskeletal care. Together, the two successful offerings may signal a turning point—marking renewed investor interest in the digital health sector and a possible shift away from digital health companies leaving public markets.

Author: Erika Tworzyanski, 2025 Summer Law Student