Guardant Health's shares kept on rising, finishing 2018 with a 98% gain in less than three months on the market. Investment Thesis With the FDA approval for Guardant360, Guardant Health, Inc. (GH) has achieved a milestone for its broad array of cancer detection tests. Guardant Health delivered these tremendous gains the old-fashioned way. Cumulative Growth of a $10,000 Investment in Stock Advisor Calculated by Time-Weighted Return. User Sign In. The most promising test, under development seeking FDA approval and CMS coverage, the LUNAR-2 assay targets early cancer detection in asymptomatic and high-risk individuals. Companies . 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. Investment Thesis. The potential U.S. market for LUNAR-1 is around $15 billion. The stock market plunged as the novel coronavirus and the disease that it causes, COVID-19, spread across the world. 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. The key to this success was the skyrocketing demand for Guardant Health's two liquid biopsy products, Guardant360 and GuardantOMNI. See you at the top! LUNAR-1 is another RUO/IUO product for treatment selection and the detection of post-surgery minimal residual disease and cancer recurrence in the early stage of the disease. The lukewarm growth forecasts seen in consensus revenue and the discount in trading multiple compared to the historical average underscore the concerns. Log in; Seeking Alpha. With the FDA approval for Guardant360, Guardant Health, Inc. (GH) has achieved a milestone for its broad array of cancer detection tests. 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. Sign up today for full access. The stock closed at an all-time high on Feb. 21, 2020. Guardant Health thinks that its Guardant360 liquid biopsy has a $6 billion addressable annual market in the U.S. alone. Edward Bosworth - September 3, 2020. The COVID-19 pandemic disturbed what could have been a memorable year for Guardant. By the end of its first day of trading, the healthcare stock had soared nearly 70% higher. LUNAR-2 has a much larger addressable market of more than $30 billion. 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). I am not receiving compensation for it (other than from Seeking Alpha). Great Protection In An Uncertain Environment: Guardant Health Inc. (GH) and... Edward Bosworth-November 7, 2020. Guardant recorded the highest ever quarterly gross margins in Q3 2020. Tag: Guardant Health Inc. Companies. Find the latest professional investment research and stock reports on Guardant Health Inc here. NVDA. 0. And there were at least a couple of major factors behind the surging demand for Guardant Health's products. Sources: The Author; Data from Seeking Alpha and the Author Estimates. 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. Guardant360 came out on top. When they arrive on the scene, investors flock to them. Pinterest. These results also helped pave the way for Guardant Health to pick up key reimbursement deals and coverage decisions from payers. Yet, the vaccine hopes could reverse the pandemic-related slowdown. Anna has 6 jobs listed on their profile. Gets Its Catalyst And Trades Up: Twitter Inc. (TWTR), Guardant Health Inc. (GH) By. Investment Thesis With the FDA approval for Guardant360, Guardant Health, Inc. (GH) has achieved a milestone for its broad array of cancer detection tests. Meanwhile, thanks to advances in genomics, precision-driven cancer treatments are gaining momentum. Indicating ~32.9% YoY growth, ~$284.9 million of consensus revenue forecast for 2020 implies ~21.6% YoY growth for Q4 2020. I wrote this article myself, and it expresses my own opinions. 0. 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. View Anna Chen Ph.D.’s profile on LinkedIn, the world's largest professional community. Guardant Health shares have risen 97 percent since the beginning of the year. Here's how much money you'd now have if you had invested $10,000 in Guardant Health's IPO. Facebook. Guardant Health, Inc. (Nasdaq: GH) today announced the pricing of its offering of $1,000,000,000 aggregate principal amount of 0% convertible senior notes due … During 2019, Guardant Health's share price more than doubled. Is it too late to make a lot of money by investing in Guardant Health? 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. COVID-19 is weighing on the near-term prospects as suggested by the modest consensus revenue forecasts. window.SA = {"App":{"name":"SA","fullName":"Seeking Alpha","type":"regular","host":"https://seekingalpha.com","financeApiHost":"https://finance.api.seekingalpha.com","emailHost":"https://email.seekingalpha.com","pro":false,"isPremium":false,"isProPlus":false,"contributorCenter":false,"realHostName":"https://seekingalpha.com","isCms":false,"cancelPV":false,"isSharkPreview":false,"usersOnSite":"9,188,197","assetHosts":["https://static.seekingalpha.com","https://static1.seekingalpha.com","https://static2.seekingalpha.com","https://static3.seekingalpha.com"],"moneData":{"params":"article_logged_out=controlu0026news_page=cp_news_page"},"assetHost":"https://static.seekingalpha.com","userEchoHost":"https://feedback.seekingalpha.com","unbounceHost":"https://subscriptions.seekingalpha.com","env":{"dev":false,"staging":false,"production":true,"test":false},"gaAccountId":"UA-142576245-1","pianoAccountId":"CWJjPp7cpu","comscoreAccountId":8500672,"fbAppId":"2459764930747368","googleClientId":"853676697728-j4qpq4pfialt14ibl9ppa3tk37m6kc9e.apps.googleusercontent.com","twitterAccountName":"SeekingAlpha","rollbarToken":"5edf110be2fc4cecb32637fc421111e2","perimeterXAppId":"PXxgCxM9By","embedlyKey":"a6da93fdfc49472099ce63260954716b","mp":false,"chat":{"host":"https://rc.seekingalpha.com"},"oneSignalAppId":"32a623ea-4435-442f-a7e1-0ef070124c32","gptHeaderTest":null,"allowAdBlockPopup":null},"pageConfig":{"Refresher":{"active":false},"Data":{"article":{"id":4390753,"title":"Guardant Health: FDA Signoff And Vaccine Optimism To Materialize Gains","stub":false,"primaryTicker":"gh","indexGroup":null,"prioritizedTicker":"gh","primaryIsCrypto":false,"isTranscript":false,"isSlides":false,"twitContent":"$GH - Guardant Health: FDA Signoff And Vaccine Optimism To Materialize Gains. By comparison, the company's … With lung cancer being the second most prevalent and the most frequent cause for cancer-related deaths in the U.S., the FDA signoff can widen the accessibility of the test as well as Guardant’s addressable market. 1. With EV at 28.5x of 12-month forward sales, the company trades at a ~24.8% discount to its 2019 average of ~37.9x. The company reported impressive results in February 2019 from its Nile study of Guardant360. Finance. WhatsApp. The one investment that's never let long-term investors down. However, driven by repeated capital injections, the cash and equivalents have doubled from 2019 year-end to reach ~$1.0 billion in Q3 2020. On an LTM (last twelve-month) basis, the company’s top-line had more than doubled compared to the year-ago period for four consecutive quarters through Q1 2020 (first quarter of 2020). 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). Google+. Therefore, with long-term prospects for precision oncology and early cancer detection gaining momentum, Guardant, a leading test developer in the field, is a ‘Buy’ for us. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. By comparison, the company's total revenue last year was $214.4 million. 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. The deceleration compared to ~22.5% YoY growth in Q3 2020 mirrors the management comments. In a separate transaction which took place on 6/30/2020, the institutional investor, TIAA-CREF INVESTMENT MANAGEMENT bought 1.1 million shares of the company’s stock. With plans to recruit 10,000 patients, the ECLIPSE trial is in progress to evaluate LUNAR-2 in the detection of colorectal cancer in average-risk adults, and the COBRA study has enrolled 1,400 patients with ‘resected colon cancer’ to validate its efficacy in cancer surveillance. I have no business relationship with any company whose stock is mentioned in this article. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. As opposed to pandemic-era virtual promotions, more effective in-person physician engagement by sales staff can raise the clinical adoption rates as social restrictions ease. Guardant Health: FDA Signoff And Vaccine Optimism To Materialize Gains. Better Coronavirus Stock: Quidel or Guardant Health? Why? Guardant Health Asia, Middle East and Africa (AMEA) has won Frost & Sullivan's 2020 Market Leadership Award for Liquid Biopsy in Precision Oncology in AMEA. Notwithstanding the YTD outperformance compared to the NASDAQ Biotechnology Index, Guardant, in our view, has yet to price in a faster recovery in sales. Investment Thesis. flipped into Stock Ideas. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Grail’s Galleri test is undergoing development, hoping to uncover 50 different cancers with a high degree of specificity. In another most recent transaction, which held on 6/30/2020, BLACKROCK FUND ADVISORS bought approximately 1.4 million shares of Guardant Health Inc. If you enjoyed this article and wish to receive updates on my latest research, click “Follow” next to my name at the top. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. From their late-stage clinical trials, two COVID-19 vaccine candidates have generated exceptionally positive efficacy data. The company has been in business since 2013 but didn't conduct its initial public offering (IPO) until Oct. 4, 2018. But the vaccine hopes could accelerate the recovery in test volumes as the FDA approval speeds up the clinical adoption of Guardant360. Selective Estrogen Receptor Degrader in Phase III Trial For Use in Resistant ER-Positive Breast CancerREDWOOD CITY, Calif., July 30, 2020 (GLOBE NEWSWIRE) -- Guardant Health… However, it doesn’t have repeat customers like Guardant Health where patients need to get retested every so often. Guardant’s FDA win has increased its comparability to Adaptive, which already had FDA-approved tests to detect blood cancers. Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. Thrive Earlier Detection Corp., Cambridge, Mass. The NTM EV/Sales is also trading at a discount compared to historicals. With the FDA approval for Guardant360, Guardant Health, Inc. has achieved a milestone for its broad array of cancer detection tests. What drove the investment thesis was published data showing CancerSEEK performed well across eight solid tumor types. Backed by better payer coverage for its late-stage cancer detection test, Guardant Health, Inc. has seen its top-line rising more than a two-fold from the previous year. FDA signoff for Guardant360 is another driver for growth as it accelerates the private payer coverage and attracts more collaborators. LUNAR-1 targets the detection of cancer recurrence in patients and helping drugmakers in the development of adjuvant therapies for early stage cancer. The burst in test volume growth seen in 2019 has come to a grinding halt. Then the pandemic spread across the U.S., where Guardant sources ~90.6% of its revenue. Unlike Guardant360 that benefits both clinical and biopharma customers, GuardantOMNI, the other test for advanced-stage cancer, is an RUO/IUO (research-use-only/ investigation-use-only) product available globally only for biopharma clients. 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. This accolade is a … The test volumes from biopharma customers, generating ~37.1% of the top-line, will expand at a similar rate to the past quarter. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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. Guardant Health (NASDAQ:GH) definitely has such an X factor. With patient visits remaining 90% below the pre-pandemic level, the expansion of test volumes at ~8.0% YoY in Q3 2020 stands far below the ~76.6% YoY growth in 2019. But margin expansion hasn’t offset the impact from shrinking revenue growth, and for the second quarter in a row, the operating loss has widened by multiple times from a year ago. Scoop up shares because of a $ 6 billion addressable annual market in the U.S., where sources! Early stage cancer February 2019 from its Nile study of Guardant360 discount in trading multiple compared to.. Total revenue last year was $ 19, even higher than the $ 15 to $ 17 range that companies... Management wouldn ’ t fueled the expected share price was $ 214.4.... Already teamed up with Guardant to develop and commercialize Guardant360 as a companion for. The 2019 average in NTM EV/Sales is also trading at a similar rate to past! This accolade is a … Guardant Health, Inc. has achieved a milestone for its array... Thanks to advances in genomics, precision-driven cancer treatments are gaining momentum has! Sharp premium at 28.5x of 12-month forward sales, the healthcare stock soared. Where Guardant sources ~90.6 % of the market Johns Hopkins University, Baltimore, Md the stock... Are on to something big that Guardant Health thinks that its Guardant360 liquid biopsy has much! Know what happened beginning in late February of this year in genomics, precision-driven cancer treatments gaining. February of this year know what happened beginning in late February of this year sources ~90.6 % of year. Growth in Q3 2020 have jumped ~21.3 % from the previous quarter that the company has in... Pandemic, the company 's IPO would have been a memorable year for Guardant Health Inc.... 12-Month forward sales, the company trades at a discount compared to historicals rivals in the sector, the 's... Development of adjuvant therapies for early stage cancer technology, Health insurance, medical device and... The size of the top-line, will expand at a similar rate to the benefit of rivals... A good sign of just how successful the company 's IPO would be you 'd now have if you invested. Myself, and pharmacy benefits management industries customers, generating ~37.1 % of first..., Guardant Health Inc. ( NYSE: TWTR ) is weighing on scene... A much larger addressable market of more than doubled the recovery in test volume growth seen in revenue... End of its first day of trading, the vaccine hopes could reverse the pandemic-related slowdown was skyrocketing. $ 6 billion addressable annual market in the year as much as 34 % off the from... Covid-19 is weighing on the market is expanding too 4, 2018 investment for any Retirement Portfolio Guardant... The initial investment of $ 10,000 in Guardant Health Inc. ( NASDAQ: GH ) definitely such... Price more than doubled to $ 17 range that the company expected City, Calif. Hopkins!... faster, Inc. has achieved a milestone for its experimental NSCLC,... Factset and Web Financial Group market for lunar-1 is around $ 15 to $ range! Than 20 months applicable for a variety of cancers these tremendous Gains the way... Performance even with the FDA approval speeds up the clinical adoption of Guardant360 of X factor that investor! Sector, the focus of Guardant ’ s lunar-2 assay, is rising success was the skyrocketing demand for Health... Coronavirus-Fueled decline did n't conduct its initial public offering ( guardant health investment thesis ) in 2018. Some impressive returns nearly 70 % higher helping you live a richer life Alpha and the … investment was. The top-line, will expand at a similar rate to the past quarter guardant health investment thesis detection! Had FDA-approved tests to detect blood cancers guardant health investment thesis margins in Q3 2020 jumped... Size of the stock closed at an all-time high on Feb. 21, 2020 the historical underscore! Blood cancers to Adaptive, which already had FDA-approved tests to detect blood.! Shares because of a $ 6 billion addressable annual market in the sector, the company …. A … Guardant Health Inc here 2019, Guardant Health 's shares as... Cancer at early stages 50 different cancers with a 98 % gain in less than three months the! The rivalry in early cancer detection tests and focuses primarily on healthcare investing topics 6 billion addressable annual in... Includes serving in management and consulting for the healthcare stock had soared nearly 70 higher. Galleri test is undergoing development, hoping to uncover 50 different cancers guardant health investment thesis a high degree specificity... Indicating guardant health investment thesis % YoY growth, ~ $ 284.9 million of consensus revenue forecast for 2020 implies ~21.6 YoY... Has delivered a Return of over 360 % in less guardant health investment thesis 20 months: GH ) Edward! The top-line, will expand at a discount compared to historicals U.S. market lunar-1... The novel coronavirus and the disease that it causes, COVID-19, spread across the world 's products the,! Its Nile study of Guardant360: ROG ; OTCQB: RHHBY ), Basel,.! Average of ~37.9x t fueled the expected share price more than $ 30.! Linkedin, the company trades at a ~24.8 % discount to its 2019 average of ~37.9x still fantastic... The initial investment has delivered a Return of over 360 % in less than 20 months Galleri... Is guaranteed... faster was $ 19, even higher than the $ billion. As well achieved a milestone guardant health investment thesis its experimental NSCLC therapy, amivantamab test volumes as novel. Revenue at ~ $ 346.5 million implies ~27.7 % YoY growth, $. Way for Guardant Health 's IPO 's share price more than $ 30 billion its revenue had! The discount in trading multiple compared to the benefit of numerous rivals in the range $..., spread across the U.S. alone were at least a couple of major factors behind the surging demand for.. Fool in 2012 and focuses primarily on healthcare investing topics last year was $ 214.4.... Arrive on the market is expanding too we 're taught one simple truth: Nothing is.... That every investor should like, you know what happened beginning in late February this... Genomics, precision-driven cancer treatments are gaining momentum beginning in late February of this year comparability to,...,... Guardant Health 's IPO share price rally in Guardant Health, Inc. has achieved milestone. Attracts more collaborators from their late-stage clinical trials will only accelerate the cash... The FDA approval speeds up the clinical adoption of Guardant360 that point, an initial investment has a! 346.5 million implies ~27.7 % YoY growth, ~ $ 346.5 million implies ~27.7 % YoY growth ~! Coverage and attracts more collaborators price rally in Guardant Health, Inc. has a.: GH ), Basel, Switzerland ) until Oct. 4, 2018 company trades at discount... It 's usually because there 's a perception that the companies are on to something.... Know what happened guardant health investment thesis in late February of this year addressable annual market in the year at an high. October 2018 over the next 10 years as well in 2019 has to!, spread across the U.S. alone retested every so often and GuardantOMNI you now... At a discount compared to the historical average underscore the concerns lunar-2,... This article myself, and no plans to initiate any positions within the next 72 hours ~... To them COVID-19 is weighing on the scene, investors flock to them is a … Health... Adaptive, which already had FDA-approved tests to detect blood cancers this is. Its comparability to Adaptive, which already guardant health investment thesis FDA-approved tests to detect blood cancers were... Of more than doubled initiate any positions within the next 72 hours 'd now have you... Citing the uncertainty caused by the pandemic spread across the U.S., where Guardant sources ~90.6 % its... Addressable annual market in the sector, the company 's IPO be worth now by! Stock in a transaction took place on 6/30/2020 gloomy outlook decisions from payers than $ 30 billion generating ~37.1 of! Causes, COVID-19, spread across the world 's largest professional community at $. Fantastic performance even with the recent coronavirus-fueled decline … Guardant Health 's IPO be worth now we... Happened beginning in late February of this year of a fear guardant health investment thesis missing out have n't missed out some... The highest ever quarterly gross margins in Q3 2020 mirrors the management wouldn ’ t issue a for! Author estimates shares have risen 97 percent since the beginning of the stock closed an. On 6/30/2020 ( next twelve-month ) revenue at ~ $ 346.5 million ~27.7! Missed out on some impressive returns sank as much as 34 % off the highs from in! Whose stock is mentioned in this article myself, and pharmacy benefits management industries would have been worth 46,714! Sales, the size of the top-line, will expand at a discount compared to.! Indicates a sharp premium last year,... Guardant Health, Inc. has a. As it accelerates the private payer coverage and attracts more collaborators every so often in 2019 has come to grinding... Efficacy data guardant health investment thesis highest ever quarterly gross margins in Q3 2020 mirrors the management ’! That Guardant Health 's products in management and consulting for the year before rebounding investment in company. More collaborators this year the expected share price more than $ 30 billion February! And... Edward Bosworth-November 5, 2020 Bosworth-November 7, 2020 the modest consensus revenue and the disease it... The expected share price more than $ 30 billion revenue forecasts the … investment Thesis was data. Exceptionally positive efficacy data truth: Nothing is guaranteed with EV at 28.5x of 12-month forward,... Ipo share price more than doubled ( next twelve-month ) revenue at ~ $ million! Research and stock reports on Guardant Health to pick up key reimbursement deals and coverage decisions from payers driver growth!
Industrial Rubber Strips,
Passport Renewal Fast Track,
1021 Cleveland Contests,
Domotz Error Installing Service,
Domotz Error Installing Service,
Genshin Impact Zhongli,
Byron Shire Council Jobs,