Heartflow raises $364M with IPO, rings Nasdaq opening bell
Heartflow, the California-based medtech company known for its artificial intelligence (AI)-based imaging evaluations, has officially gone public. President and CEO John Farquhar even celebrated the milestone by ringing the Nasdaq opening bell in Times Square with several other company representatives.
Back in July, when Heartflow’s decision to go public was first announced, the company was reportedly hoping to raise at least $100 million with its initial public offering (IPO). On Monday, however, it announced the closing an upsized IPO with total gross proceeds of approximately $364.2 million.
The offering included 19,166,667 shares of common stock sold at a price of $19 per share. Heartflow’s stock is now being traded on Nasdaq under the ticker symbol HTFL.
J.P. Morgan, Morgan Stanley and Piper Sandler all acted as joint book-running managers for the IPO. Stifel and Canaccord Genuity acted as co-managers.
IPO follows years of momentum
Heartflow’s AI-powered coronary CT angiography (CCTA) assessments have already been used to help manage more than 400,000 heart patients around the world. Heartflow One, the company’s noninvasive coronary care platform, includes such software solutions as Roadmap Analysis, FFRCT Analysis and Plaque Analysis.
A few significant policy decisions helped pave the way for Heartflow’s decision to go public. First, the U.S. Centers for Medicare and Medicaid Services (CMS) finalized expanded Medicare coverage for platforms that evaluate imaging results to quantify coronary plaque buildup and identify signs of coronary artery disease (CAD). The update covered Heartflow’s Plaque Analysis in addition to similar AI-powered offerings from other medtech companies.
Then, just days later, the American Medical Association issued a new Category I CPT code for those same platforms. The update, scheduled to take effect in January 2026, indicates that the technologies developed by Heartflow and others are now established and will be used by clinicians for many years to come.
Perhaps the biggest piece of good news for Heartflow, however, came in November 2024, when CMS finalized a new payment policy that more than doubles the Medicare reimbursements hospitals receive for performing CCTA. This update, expected to make CCTA a much more attractive option to healthcare providers, raised the payment rate from $175 all the way to $357.13.
Heartflow previously came close to going public back in 2021, but called off the deal due to “unfavorable market conditions.”
Michael has more than 19 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.