Microvast Holdings announces departure of chief financial officer
On Monday, Raymond (NSE:RYMD) James reaffirmed its Outperform rating and $175.00 price target for Natera (NASDAQ:NTRA), following updates to oncology guidelines that could impact the company’s cancer testing product, Signatera. The company’s stock has shown remarkable momentum, delivering a 147.81% return over the past year and trading near its 52-week high of $183. According to InvestingPro data, Natera maintains a "Good" financial health score, with 13 key insights available for subscribers looking to dive deeper into the company’s fundamentals. The National Comprehensive Cancer Network (NCCN) recently updated its colon cancer treatment guidelines, which now acknowledge the prognostic value of circulating tumor DNA (ctDNA) minimal residual disease (MRD) tests like Signatera. The guidelines encourage the use of these tests in clinical trials but stop short of recommending them for routine surveillance.
The NCCN’s updated guidance, published last Friday, represents a nuanced yet positive step for MRD tests, suggesting that while there is progress, the journey towards widespread adoption and evidence generation is ongoing. This progress is reflected in Natera’s impressive 54.94% revenue growth over the last twelve months, with the company generating over $1.5 billion in revenue during this period. Although purely prognostic tools have sometimes gained clinical traction without being linked to significant treatment benefits, proving such links would be more impactful.
In contrast to the cautious stance on ctDNA for colon cancer surveillance, January’s updates for merkel cell carcinoma (MCC) guidelines were more supportive. The guidelines stated that ctDNA can assess disease burden and detect recurrence, often before it is clinically evident, and recommended surveillance typically every three months. Despite this stronger endorsement, the MCC market remains relatively small in the U.S., with only a few thousand new cases diagnosed annually.
The recent guideline changes, while incremental, are seen as a sign of progress for Natera. The analyst pointed out that forthcoming study results, such as those from the 702 study which showed Signatera’s potential to predict the benefit of adding celecoxib to standard adjuvant care, along with other studies like the IMVIGOR 011 in muscle invasive bladder cancer, are expected to further validate the clinical utility of Signatera and support its inclusion in treatment guidelines for various cancers over time. With the company’s next earnings report due on February 26, InvestingPro subscribers can access comprehensive analysis and detailed financial metrics to better understand Natera’s growth trajectory and market position through the exclusive Pro Research Report, available for over 1,400 US stocks.
In other recent news, genetic testing company Natera has been in the spotlight for several developments. Canaccord Genuity maintained a Buy rating for Natera, following positive study results related to the company’s Signatera test. Similarly, Barclays (LON:BARC) initiated coverage on Natera shares with an Overweight rating, highlighting the company’s expansion into new markets and its first-mover advantage in the minimal residual disease (MRD) space.
Natera has also broadened its patent infringement litigation against NeoGenomics (NASDAQ:NEO), Inc., involving the RaDaR assay, a test for molecular residual disease. This is a recent development in the ongoing lawsuit, with the inclusion of an additional patent.
TD Cowen reiterated a Buy rating on Natera shares, increasing the company’s price target from $175.00 to $195.00. Despite the anticipation of new market entrants in the MRD space in 2025, the firm expressed confidence in Natera’s growth trajectory.
Lastly, Natera announced an updated employment agreement with its Executive Chairman and Co-Founder, Dr. Matthew Rabinowitz. The new contract revises the terms of the prior agreement, setting his annual base salary at half of the company’s CEO’s base salary, among other changes.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.