Personalis secures investment from Merck, extends Moderna deal

Published 19/12/2024, 15:06
Personalis secures investment from Merck, extends Moderna deal
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This press release contains forward-looking statements regarding the anticipated benefits of the investment and collaboration, the potential for individualized therapies to transform cancer care, and the extension of the collaboration to routine patient treatment. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including the potential for FDA approval and market acceptance of INTs. Based on InvestingPro analysis, Personalis (NASDAQ:PSNL) appears undervalued at current levels, with 8 additional ProTips and comprehensive financial metrics available to subscribers, including detailed analysis of the company's growth trajectory and market position. Get access to the full Pro Research Report, part of InvestingPro's coverage of over 1,400 US equities, for in-depth analysis and actionable insights. Based on InvestingPro analysis, Personalis appears undervalued at current levels, with 8 additional ProTips and comprehensive financial metrics available to subscribers, including detailed analysis of the company's growth trajectory and market position. Get access to the full Pro Research Report, part of InvestingPro's coverage of over 1,400 US equities, for in-depth analysis and actionable insights.

The extended collaboration with Moderna (NASDAQ:MRNA) involves the use of Personalis’ ImmunoID NeXT Platform® in the ongoing development of an investigational individualized neoantigen therapy (INT), V940/mRNA-4157, a joint project between Merck (NS:PROR) and Moderna. INTs are a new approach to cancer treatment, leveraging the patient's immune system to fight the disease.

Chris Hall, CEO of Personalis, expressed enthusiasm about the continued partnership with Merck and Moderna, highlighting the potential impact of individualized therapies in routine cancer care. The company’s technology has been instrumental since the beginning of the clinical development program for V940/mRNA-4157.

The investment by Merck is seen as a reinforcement of Personalis' strategic role in precision oncology, a field that aims to tailor cancer treatment to the individual characteristics of each patient's cancer. Personalis’ assays are designed to provide sensitive detection of minimal residual disease (MRD) and to inform the selection of targeted therapies through comprehensive genomic profiling.

This press release contains forward-looking statements regarding the anticipated benefits of the investment and collaboration, the potential for individualized therapies to transform cancer care, and the extension of the collaboration to routine patient treatment. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including the potential for FDA approval and market acceptance of INTs.

The information provided is based on the current expectations of Personalis and is subject to change. The financial transaction is expected to close following standard regulatory approvals. The collaboration with Moderna is set to continue for multiple years, contributing to the advancement of Personalis’ business strategy and its role in precision oncology. This news article is based on a press release statement from Personalis, Inc.

In other recent news, Personalis, Inc. reported a substantial 41% increase in year-over-year revenue for the third quarter of 2024, amounting to $25.7 million. This growth was primarily driven by a 96% surge in biopharma sector revenue, attributed to the demand for their tumor profiling products and the NeXT Personal MRD assay. The company also raised its full-year revenue guidance to between $83 million and $84 million.

Despite these positive developments, Personalis expects a decline in Q4 revenue to between $15 million and $16 million, mainly due to a decrease in revenue from Moderna and Natera (NASDAQ:NTRA). The net loss for Q3 was reported at $39.1 million, influenced by a $26 million non-cash expense related to warrant accounting.

However, the company saw an improvement in gross margin to 34% in Q3, up from 19.1% year-over-year. Personalis also received a new $7.5 million task order from the VA MVP, effective from October 2024 to September 2025. The company's NeXT Personal product has gained positive traction, leading to an expansion of the Tempus agreement to increase patient sample volume. These are the latest developments in the company's recent performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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