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Tempus will present six abstracts, including three oral presentations, at the Connective Tissue Oncology Society meeting in November. The research focuses on rare mesenchymal tumors, which are cancers that develop in tissues like bone or muscle. This matters because it showcases the company's data library in action. By using its collection of patient records and genetic tests to better classify rare diseases, Tempus helps doctors find treatment options that might otherwise be missed. While conference presentations are routine for biotech firms, they help prove the clinical value of the platform to the doctors and drugmakers who pay for it.
Source: Business Wire
Tempus is partnering with the SOTERIA Precision Medicine Foundation to bring its genomic profiling to the U.S. military and veteran populations. The collaboration will use the company's AI tools to help doctors navigate treatment options for service members battling cancer.
This is a useful expansion of the company's reach into the public health sector. By integrating its tests into the SOTERIA Cancer Hunt initiative, Tempus adds more clinical data to its library, which is the core asset it licenses to pharmaceutical firms to help them develop new drugs.
Source: PRNewsWire
Jefferies raised its rating on the stock to hold and set a price target of $70. This move follows the company's recent earnings report, which showed it reached adjusted profitability earlier than many expected.
While the new target is still below the current stock price of about $79, the upgrade suggests the firm sees less risk in the business now that it has proven it can make money while growing its data library. Three other analysts also nudged their targets up this week, bringing the average across Wall Street to $78.
Source: Jefferies
After Tempus AI reported its November results, we updated our revenue and profit projections for the next three years. We moved our rating from Buy to Watch. We have added the value of investments the company holds to what we track, as swings in these securities contributed most of the reported profit this quarter. We also added two new areas to our thesis: the expansion into heart-related AI tools and the share of revenue coming from companies with close ties to management.
Tempus AI reported its first quarterly profit this period, earning 7 cents per share when analysts expected a loss. Revenue reached about 412 million dollars, driven by a 33 percent jump in its data and applications business. This segment is critical because it sells access to the company's massive library of medical records to drug companies, a high-profit activity that helps offset the costs of its laboratory testing.
The company also saw a massive 300 percent increase in volume for its newer cancer-monitoring tests, which look for tiny amounts of remaining tumor DNA in a patient's blood. This growth suggests the company is successfully expanding beyond its original genetic sequencing business. As more doctors use these tests, the company's data library grows larger and more valuable to the biotech firms that pay to research it.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Management consistently sets a bar they can clear, but this latest quarter was a breakout. Turning a profit well ahead of expectations shows the business is scaling faster than even they predicted.
| Expectation | |
|---|---|
| EPS | $0.06 |
| Revenue | $459M |