Updated Aug 10 at 7:05pm ET.
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Tempus is joining a network run by CellCarta, a firm that helps drug companies run clinical trials and bring new products to market. Under this deal, Tempus will act as a commercial laboratory partner for companion diagnostics, which are specialized tests that help doctors determine if a specific drug is the right match for a patient's genetic profile.
This is a positive step for the company's growth because it puts Tempus's testing technology directly into the hands of more biopharmaceutical clients. By becoming a key part of how new cancer treatments are rolled out, Tempus can collect more data for its library while making its testing platform a standard tool for drug developers.
Source: PRNewsWire
A new study published in Nature Medicine shows that PRISM2, an AI model built with Microsoft, can handle complex diagnostic tasks using simple prompts. This is a foundation model, which is a type of AI trained on vast amounts of data that can be adapted for many different specific medical uses.
This matters because it proves the company's technology can automate and improve how pathologists identify cancer. For long-term owners, this validates the value of the medical data library the company has built, as it shows that data can be turned into tools that doctors and researchers are willing to use.
Source: Business Wire
Stifel Nicolaus reduced its price target to $50 from $60. This is a meaningful drop of about 17 percent. Analysts often adjust their targets after earnings to reflect new data on growth and spending. Even with the lower target, the firm is signaling that the stock is roughly fairly valued at today's prices.
Source: Stifel Nicolaus
BTIG lowered its price target for the stock to $70, down from $80. While this is a lower target, it is still well above the current price of about $47. This adjustment follows the company's recent quarterly results and its plan to acquire Personalis. The firm is essentially saying the stock is worth a bit less than they first thought, but they still view the business as a buy.
Source: BTIG
The company brought in $382.5 million in revenue last quarter, which was right in line with what analysts expected and up 22 percent from a year ago. Its loss of $0.04 per share was much smaller than the $0.14 loss Wall Street anticipated. This is a good sign that the business is becoming more efficient as it grows.
The most important part of the report was the 36 percent growth in data licensing. This is the high-profit arm of the business that sells medical insights to drug companies. The company also signed about $200 million in new licenses, which builds a strong pipeline for future sales. These high-margin deals are the key to the company reaching its goal of being profitable by 2027.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Analysts lowered their price targets following the company's recent quarterly earnings report. Eight of 13 analysts rate the stock a buy, and the average target of $65 suggests an 18% increase from the current price.
The company has a perfect record of beating analyst profit targets over the last two years. Management consistently sets a bar they can clear, even while the business grows 22 percent.
| Expectation | |
|---|---|
| EPS | $-0.07 |
| Revenue | $410M |
