CHICAGO - Tempus AI, Inc. (NASDAQ: TEM), a leader in artificial intelligence applications for precision medicine with a market capitalization of $5.9 billion and impressive revenue growth of 32% year-over-year, has announced the development of a whole-genome sequencing test, named xH, aimed at enhancing personalized treatment for hematological cancer patients. According to InvestingPro data, the company maintains a healthy gross profit margin of 53%. This new diagnostic tool represents the company's latest advancement in employing comprehensive genomic profiling to support clinicians and researchers in the field of oncology.
The xH test is currently available for research purposes only, with clinical availability expected within the next year. It is designed to detect all clinically-relevant genetic variations, which could lead to more effective individualized therapy options, particularly in hematological oncology. The test is also intended to provide valuable insights for Tempus' biopharmaceutical partners, aiding in the discovery and development of new treatments.
Eric Lefkofsky, Founder and CEO of Tempus, stated that xH leverages the full genome to provide meaningful insights into complex diseases and has the potential to transform patient care by integrating whole-genome sequencing into their diagnostic platform.
A pilot study involving 135 patients demonstrated the xH assay's high sensitivity in identifying genetic alterations across various myeloid malignancies, including Acute Myeloid Leukemia (AML) and Myelodysplastic Syndromes (MDS). The whole-genome sequencing assay showed over 98.9% concordance with traditional molecular methods and was notably effective in detecting structural variants and large copy number alterations recommended by guidelines.
Tempus is well-known for its AI-driven precision medicine solutions that help physicians provide personalized patient care. The company possesses one of the world's largest libraries of multimodal data and an operating system to make this data accessible and useful for healthcare professionals. While currently operating at a loss, InvestingPro analysis suggests the stock is trading below its Fair Value, with a strong current ratio of 2.69 indicating solid short-term financial stability. Get access to 6 more exclusive InvestingPro Tips and comprehensive financial metrics to make informed investment decisions.
The company's forward-looking statements indicate a vision for the potential impact of xH and other tests on clinical practices and the timing of their availability. These statements are based on Tempus' current expectations and projections about future events and trends that may affect its business and industry. With the next earnings report expected on February 26, 2025, investors can access detailed financial analysis and Fair Value estimates through InvestingPro's comprehensive suite of tools.
This article is based on a press release statement from Tempus AI, Inc. and does not include any speculative or promotional content. The factual information provided aims to give an overview of the company's new diagnostic development and its implications for precision medicine in oncology.
In other recent news, Tempus AI reported a 30% annual revenue growth in 2024, with a total revenue of approximately $693 million. The fourth quarter alone saw revenues of about $200 million, a 35% rise year-over-year. Notably, Piper Sandler raised the price target for Tempus AI from $40 to $70, maintaining a neutral rating. This adjustment followed Tempus AI's recent earnings report.
In contrast, Stifel downgraded Tempus AI's stock from Buy to Hold but increased the price target to $65. Needham raised its stock price target to $56 and maintained a Buy rating. These changes in ratings and price targets are among the recent developments for Tempus AI.
Tempus AI's acquisition of genetics firm Ambry was also highlighted, although its impact on Tempus AI's financials was not factored into the revised estimates. The company's recent FDA clearance of its Tempus ECG-AF device, an AI tool for identifying patients at higher risk of atrial fibrillation/flutter, and a strategic partnership with Avacta Therapeutics were other significant developments. The collaboration with Avacta aims to utilize AI for the advancement of oncology drug development.
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