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On Monday, H.C. Wainwright adjusted its outlook on Personalis (NASDAQ:PSNL), increasing the price target to $9.00 from the previous $7.50 while maintaining a Buy rating. The firm's decision follows the announcement on Thursday that Personalis and its partner Tempus have decided to extend their partnership for the commercialization of NeXT Personal, an ultra-sensitive minimal residual disease (MRD) liquid biopsy test.
Tempus will intensify its commercialization initiatives, and Personalis is anticipated to boost the volume of patient samples analyzed in the first two years of the product's introduction, projected to be in 2025 and 2026.
Additionally, on Thursday, Tempus fully exercised its existing warrants, contributing approximately $18.4 million to Personalis and purchasing 3.5 million shares of Personalis common stock at $5.07 per share, resulting in about $17.7 million in gross proceeds. In total, Personalis received approximately $36 million from these transactions.
The financial boost is expected to extend Personalis's cash runway and is seen as further endorsement of NeXT Personal's market potential. Since its introduction less than a year ago, NeXT Personal has experienced robust demand through its early access program and has shown promising clinical evidence of its capability to detect early disease recurrence in various cancers.
Personalis plans to submit applications for reimbursement approval for NeXT Personal products to the Centers for Medicare & Medicaid Services (CMS) towards the end of 2024 or the beginning of 2025.
This strategic move, combined with the recent financial investments, could position Personalis and Tempus to potentially achieve a first-mover advantage in the highly competitive diagnostic market, which could lead to rapid and sustainable market share growth upon receiving reimbursement approval.
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