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Guardant Health adds oncology leader to board

EditorNatashya Angelica
Published 07/18/2024, 05:09 PM
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PALO ALTO, Calif. - Guardant Health , Inc. (NASDAQ:GH), known for its contributions to precision oncology, announced the latest addition to its board of directors, Dr. Manuel Hidalgo Medina.

Dr. Hidalgo, who is currently the Chief of the Division of Hematology and Medical Oncology at Weill Cornell Medicine and NewYork-Presbyterian/Weill Cornell Medical Center, brings a considerable background in clinical and translational research to the company, particularly in the realm of anticancer drug development.

Helmy Eltoukhy, chairman and co-CEO of Guardant Health, highlighted Dr. Hidalgo's extensive experience in precision oncology and his dedication to improving oncology care as key reasons for his appointment.

Dr. Hidalgo's career includes leadership roles at Beth Israel Deaconess Medical Center in Boston, the Spanish National Cancer Research Centre, and the Kimmel Comprehensive Cancer Center. He is also a board member at Bristol Myers (NYSE:BMY) Squibb.

Dr. Hidalgo expressed enthusiasm for Guardant Health's innovative methods in cancer detection and care, and his eagerness to further their mission of enhancing patient outcomes through advanced diagnostics.

Guardant Health, founded in 2012, is at the forefront of precision oncology, striving to extend lives by providing insights into disease drivers through its sophisticated blood and tissue tests, real-world data, and AI analytics. The company's tests play a significant role in improving care across various stages, from early cancer screening and monitoring to assisting physicians in selecting the most effective treatments for advanced cancer patients.

The appointment of Dr. Hidalgo to the board of Guardant Health is effective immediately, as the company continues to expand its leadership team and advance the field of precision oncology. This news is based on a press release statement from Guardant Health, Inc.

In other recent news, Guardant Health has seen a series of promising developments. The company's Shield blood-based test for colorectal cancer screening received favorable votes from the FDA Advisory Committee, marking a significant step towards less invasive cancer detection methods.

Canaccord Genuity, following a discussion with experts, increased its price target for the company to $38, reflecting growing confidence in the revenue prospects for the Shield test.

Simultaneously, Jefferies initiated coverage on Guardant Health with a Buy rating and a price target of $32, based on the company's strong position in the minimal residual disease market and positive free cash flow reported in the first quarter of 2024. BTIG also maintained its Buy rating on Guardant Health with a price target of $45, indicating the firm's confidence in the company's ability to handle higher leverage.

Furthermore, Cathie Wood's ARK ETFs showed growing interest in Guardant Health by purchasing additional shares of the company. These recent developments underscore the potential for future growth, especially with the Shield product in the multi-cancer early detection market. Analysts from Jefferies and BTIG, along with investors like ARK ETFs, continue to show confidence in Guardant Health's prospects.

InvestingPro Insights

Guardant Health, Inc. (NASDAQ:GH) has been making strides not only in the medical field but also in the financial markets. According to recent data from InvestingPro, the company has experienced a significant return over the last three months, with a 95.26% price total return, highlighting a strong investor confidence in its growth potential.

Despite not being profitable over the last twelve months, with a reported operating income margin of -73.68% for the same period, Guardant Health has demonstrated robust revenue growth of 25.21% in the last twelve months as of Q1 2024.

This growth is further accentuated by a substantial quarterly revenue growth of 30.9% in Q1 2024, suggesting an accelerating pace in the company's business activities. Moreover, the company's gross profit margin stands at a healthy 60.37%, underscoring its ability to maintain profitability at the core operational level.

InvestingPro Tips also reveal that Guardant Health operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, which may offer some financial stability and flexibility for the company. However, it is trading at a high Price / Book multiple of 55.82, which could indicate a premium market valuation relative to its book value.

For those looking to delve deeper into Guardant Health's financial health and future prospects, InvestingPro offers additional insights. There are currently 6 more InvestingPro Tips available for Guardant Health, which can be accessed by visiting: https://www.investing.com/pro/GH. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, allowing for a more comprehensive analysis and investment decision-making.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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