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CHICAGO - Tempus AI, Inc. (NASDAQ: TEM), a leader in artificial intelligence for healthcare, introduced a new liquid biopsy assay, xM for treatment response monitoring (TRM), designed to track the effectiveness of immune-checkpoint inhibitor therapy in patients with advanced solid tumors. The assay, which is not yet clinically available, was presented at the American Society of Clinical Oncology (ASCO®) Annual Meeting on Monday. According to InvestingPro data, Tempus has demonstrated strong revenue growth of 43% year-over-year, though the company, valued at $9.55 billion, continues to invest heavily in innovation while operating with moderate debt levels.
xM for TRM is the latest innovation in Tempus’s suite of assays for monitoring molecular response and minimal residual disease (MRD). It aims to measure changes in circulating tumor DNA (ctDNA) levels in the blood, offering an early assessment of how patients with advanced cancers are responding to immunocheckpoint inhibitors, either as standalone treatments or in combination with other therapies.
The technology behind xM for TRM incorporates a multi-parametric algorithm that combines copy number variations (CNVs) with somatic and germline variant allele frequencies (VAFs), providing a detailed estimate of the circulating tumor fraction. This approach could allow clinicians to detect a patient’s response to ICI therapy as early as six weeks into treatment.
According to Dr. Halla Nimeiri, Chief Development Officer at Tempus, the new assay is a significant addition to the tools available to physicians and biopharma researchers. It facilitates timely tracking of tumor fraction changes, which is critical for patients with advanced disease where treatment timing is crucial.
Data presented at the ASCO meeting underscored the assay’s potential in helping clinicians refine treatment strategies based on molecular response monitoring. The study suggested that patients who are non-responders at the molecular level may have worse survival outcomes compared to those who show a molecular response, indicating the clinical value of the xM for TRM assay. Analysts tracking the company maintain a moderate buy consensus, with price targets ranging from $55 to $70, reflecting mixed sentiment about the company’s growth trajectory. InvestingPro subscribers can access 6 additional key insights about Tempus’s financial health and market position.
The company, which is known for its application of AI in healthcare and its extensive multimodal data library, expects the xM for TRM assay to be available for clinical use later this year. While Tempus maintains a solid gross profit margin of 57%, InvestingPro analysis indicates the company is currently trading above its Fair Value, with analysts not anticipating profitability this year. A comprehensive Pro Research Report detailing Tempus’s market position and growth prospects is available to InvestingPro subscribers.
This announcement contains forward-looking statements regarding the potential impact and clinical use of the xM TRM assay, which are subject to risks and uncertainties. The information presented is based on a press release statement from Tempus AI, Inc.
In other recent news, Tempus AI reported a strong performance in its first-quarter 2025 earnings, with a 75.4% increase in revenue year-over-year, reaching $255.7 million, surpassing the forecasted $248.5 million. The company also achieved an earnings per share of -$0.24, slightly better than the anticipated -$0.26. In a strategic move, Tempus AI announced a significant partnership with AstraZeneca and the Pathos Foundation, securing a $200 million data and modeling license agreement, which is expected to contribute approximately $25-30 million in the second half of 2025. Additionally, Tempus AI has entered into a multi-year collaboration with Boehringer Ingelheim to enhance cancer treatment research, leveraging its AI-powered platform to support drug discovery.
Furthermore, Tempus AI is collaborating with Verastem Oncology to develop a companion diagnostic test for ovarian cancer, building on the success of Verastem’s clinical trials. Morgan Stanley raised its price target for Tempus AI to $65 from $60, maintaining an Overweight rating, citing the company’s strong first-quarter performance and promising developments in its testing systems. Shareholders have also approved key proposals at the company’s annual meeting, including the election of nine directors and the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm. Tempus AI continues to emphasize its commitment to transparency and corporate governance standards, reflecting its strategic focus on long-term growth and innovation in precision medicine.
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