Paramount stock rises after FCC approves Skydance merger
PALO ALTO, Calif. - Guardant Health, Inc. (NASDAQ:GH), a precision oncology company with a market capitalization of $5.37 billion and impressive year-over-year revenue growth of 31%, has announced a partnership with Bayshore HealthCare to offer its suite of cancer diagnostic tests in Canada. This collaboration is set to improve access to advanced cancer screening and treatment selection tools for Bayshore’s patients outside of Quebec, who number over 350,000 annually. According to InvestingPro data, the company’s stock has delivered a remarkable 120% return over the past year.
Bayshore will integrate Guardant Health’s tests, including Guardant360® for therapy selection in advanced cancer cases, Guardant Reveal™ for minimal residual disease detection and recurrence monitoring, and Shield™ for colorectal cancer screening, into its network of clinics.
Helmy Eltoukhy, Guardant chairman and co-CEO, expressed confidence in the partnership’s potential to enhance patient outcomes and reduce cancer mortality by equipping physicians with state-of-the-art molecular profiling technology. Karl Frank, Divisional Director at Bayshore Specialty Rx, echoed this sentiment, highlighting the expected benefits of personalized treatment plans and improved monitoring facilitated by Guardant’s tests.
Guardant Health, founded in 2012, specializes in blood and tissue tests, real-world data, and AI analytics to guide patient care and accelerate the development of new cancer therapies. The company maintains a strong financial position with a current ratio of 4.68, indicating robust liquidity to meet short-term obligations. Based on InvestingPro Fair Value analysis, the stock appears to be trading near its fair value. Bayshore HealthCare, a prominent Canadian home and community healthcare service provider, focuses on improving the quality of life and independence of Canadians across various ages and has been recognized as one of Canada’s Best Managed Companies since 2006.
This partnership is based on a press release statement and contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ from those anticipated. With a gross profit margin of 61% but currently operating at a loss, Guardant Health cautions that these statements are based on current expectations and assumptions, and future outcomes may vary due to several factors. The company has disclaimed any obligation to update forward-looking statements to reflect changes in expectations or circumstances.
In other recent news, Guardant Health has announced significant developments regarding its Shield blood test for colorectal cancer screening. The U.S. Department of Veterans Affairs (VA) has extended coverage for the Shield test to eligible veterans, marking the first time such coverage has been provided to non-Medicare beneficiaries aged 45 to 64. This VA decision follows the FDA’s approval of the Shield test in July 2024, making it the first blood test approved for primary colorectal cancer screening. Additionally, the Centers for Medicare & Medicaid Services (CMS) granted the Shield test Advanced Diagnostic Laboratory Test (ADLT) status, allowing a higher reimbursement rate of $1,495 compared to the previous $920 under Medicare.
Analysts have responded positively to these developments. TD Cowen reiterated a Buy rating with a $56 price target, highlighting the revenue potential from the new ADLT rate. Citi also maintained a Buy rating with a $60 price target, noting the expected improvement in revenue and gross margins due to the increased reimbursement rate. Raymond James reiterated an Outperform rating with a $59 target, emphasizing the earlier-than-expected ADLT status as a boost to Guardant Health’s financial outlook. These recent developments reflect a broader opportunity for Guardant Health to enhance early cancer detection and expand its market impact.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.