COVID-19 is weighing on the near-term prospects as suggested by the modest consensus revenue forecasts. Great Protection In An Uncertain Environment: Guardant Health Inc. (GH) and... Edward Bosworth-November 7, 2020. Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. Nearly $36,250. Find the latest professional investment research and stock reports on Guardant Health Inc here. With the FDA approval for Guardant360, Guardant Health, Inc. (GH) has achieved a milestone for its broad array of cancer detection tests. LUNAR-2 could enable the detection of cancer at early stages. Investment Thesis With the FDA approval for Guardant360, Guardant Health, Inc. (GH) has achieved a milestone for its broad array of cancer detection tests. Yet, the vaccine hopes could reverse the pandemic-related slowdown. The stock market plunged as the novel coronavirus and the disease that it causes, COVID-19, spread across the world. Guardant Health (NASDAQ:GH) definitely has such an X factor. Assuming the historical average of trading multiple, our more sanguine revenue forecast for the next 12-months indicates an attractive premium offsetting the near-term concerns over growth. Pinterest. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Gets Its Catalyst And Trades Up: Twitter Inc. (TWTR), Guardant Health Inc. (GH) By. Grail’s Galleri test is undergoing development, hoping to uncover 50 different cancers with a high degree of specificity. The key to this success was the skyrocketing demand for Guardant Health's two liquid biopsy products, Guardant360 and GuardantOMNI. Both tests feed the development of the company’s LUNAR program. View Anna Chen Ph.D.’s profile on LinkedIn, the world's largest professional community. The burst in test volume growth seen in 2019 has come to a grinding halt. The total Institutional investors and hedge funds own 84.80% of … With the FDA approval for Guardant360, Guardant Health, Inc. has achieved a milestone for its broad array of cancer detection tests. Exact Sciences Corp. said it will acquire Thrive Earlier Detection Corp. to gain technology for cancer screening in a deal worth as much as $2.15 billion. Pending the FDA approval, the frontline workers and the vulnerable groups are likely to receive the first shots before the wider availability expected in mid-2021. Cumulative Growth of a $10,000 Investment in Stock Advisor Calculated by Time-Weighted Return. Guardant Health's shares sank as much as 34% off the highs from earlier in the year before rebounding. So how much would that $10,000 investment in the company's IPO be worth now? In September, Illumina, Inc. (ILMN) paid $7.1 billion in cash and stock to acquire GRAIL, Inc. (GRAL), a developer of liquid biopsy-based tests for early detection. User Sign In. The regulatory signoff should raise hopes for Guardant’s broad portfolio of cancer tests, which aim to detect all stages of the disease through liquid biopsy. Investors scoop up shares because of a fear of missing out. Guardant Health. With the FDA approval for Guardant360, Guardant Health, Inc. has achieved a milestone for its broad array of cancer detection tests. I have no business relationship with any company whose stock is mentioned in this article. Since its IPO in 2018, the company scored its most significant clinical milestone. * Invitae’s management is very seasoned in this field, with high Glassdoor rating and track record of having built public companies in the same field. The COVID-19 case counts are rising in record numbers in the U.S., and according to health experts, the worst has yet to come as winter approaches. As the company’s long-term prospects in early cancer detection and the precision-oncology outweigh the near-term risks from COVID-19, Guardant is a compelling ‘Buy’ for us. With the FDA approval for Guardant360, Guardant Health, Inc. (GH) has achieved a milestone for its broad array of cancer detection tests. In August, the FDA greenlighted its liquid biopsy test, Guardant360 CDx, for tumor mutation profiling of solid tumors and as a companion diagnostic to identify non-small cell lung cancer (NSCLC) patients suitable for Tagrisso® (osimertinib). The deceleration compared to ~22.5% YoY growth in Q3 2020 mirrors the management comments. The lukewarm growth forecasts seen in consensus revenue and the discount in trading multiple compared to the historical average underscore the concerns. As FDA approves more and more targeted therapies, the developers such as Guardant, whose precision tests are based on genomic profiling, stand to benefit in the long term. Guardant Health thinks that its Guardant360 liquid biopsy has a $6 billion addressable annual market in the U.S. alone. That's still a fantastic performance even with the recent coronavirus-fueled decline. A subsequent respite in the virus spread will likely accelerate the recovery in test volumes as patients eventually return to doctors’ offices to seek cancer care, something they cannot postpone indefinitely. I’m convinced that Guardant Health can deliver mind-blowing returns over the next 10 years as well. But with COVID-19 making a resurgence in the U.S., the clinical test volumes, generating ~47.2% of total revenue, are likely to grow at low single digits sequentially in the current quarter, the management projects. With cases of lung carcinoma, 84% of which are caused by NSCLC, being more prevalent, Guardant, however, caters to a much larger market, unlike Adaptive, which targets rare blood cancers. Edward Bosworth - September 3, 2020. Assuming a faster pickup in test volumes than suggested by the consensus, we project ~42.1 – 47.2% YoY growth in LTM revenue for the company, leading to ~$385.5 – ~$399.3 million in revenue. The test volumes from biopharma customers, generating ~37.1% of the top-line, will expand at a similar rate to the past quarter. The recent FDA signoff for Guardant360 hasn’t fueled the expected share price rally in Guardant. Investment Thesis. Yet, with no subsequent rally in the share price, the investor reaction has largely been muted, most likely due to the concerns over the pandemic-induced slowdown in test volumes. See you at the top! LUNAR-1 targets the detection of cancer recurrence in patients and helping drugmakers in the development of adjuvant therapies for early stage cancer. Then the pandemic spread across the U.S., where Guardant sources ~90.6% of its revenue. 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The institutional investor bought 8.7 million shares of the stock in a transaction took place on 6/30/2020. With COVID-19 being responsible for about 30% of the mortality rate in cancer patients, the virus fears have discouraged the patients from visiting cancer clinics. This study pitted Guardant Health's liquid biopsy against standard-of-care tissue testing in detecting key biomarkers in patients with advanced non-small-cell lung cancer (NSCLC). According to Illumina, early detection could make up ~61% of the global market for cancer genetic sequencing, which is growing at 27% of CAGR (compound annual growth rate) to reach $75 billion by 2035. Guardant Health: FDA Signoff And Vaccine Optimism To Materialize Gains (NASDAQ:GH) Investment Thesis With the FDA approval for Guardant360, Guardant Health, Inc. (GH) has achieved a milestone for its broad array of cancer detection …. 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