Inovalon’s 65% Stock Renaissance Returns CEO to Billionaire Club

(Bloomberg) -- When Keith Dunleavy was a physician at John Hopkins Hospital in the 1990s, the former engineering undergrad was amazed at how little technology was being used in healthcare.

For the past two decades his company, Inovalon Holdings Inc., has worked at that intersection of medicine and computing. The company offers cloud-based data analytics to clients in the healthcare industry.

The stock -- after several years in the doldrums -- has staged a renaissance in the past 12 months gaining 65%, helped by third-quarter earnings topping estimates. That’s boosted the value of the 35% stake held by the family to $1 billion, according to calculations by Bloomberg.

Inovalon’s press office didn’t immediately respond to an emailed request for comment sent outside normal office hours.

Dunleavy, who is Inovalon’s chief executive officer and chairman, should be used to these gilded heights. The stake was worth $1.5 billion at the time of the Bowie, Maryland-based company’s initial public offering in February 2015. A stock slump cut its value to about $500 million by the end of 2016 after earnings disappointed investors.

Still, he has a way to go before he can overhaul America’s richest doctor. Patrick Soon-Shiong, a surgeon turned biotech entrepreneur, has a net worth of $8.8 billion on the Bloomberg Billionaires Index.

To contact the reporter on this story: Tom Metcalf in London at tmetcalf7@bloomberg.net

To contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Stephen Kirkland, Alastair Reed

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