Tempus and Verastem partner on ovarian cancer diagnostic test

Published 20/05/2025, 13:38
Tempus and Verastem partner on ovarian cancer diagnostic test

CHICAGO - Tempus AI, Inc. (NASDAQ: TEM), a leader in artificial intelligence applications for precision medicine with a market capitalization of $11 billion and impressive year-to-date returns of 89%, has announced a collaboration with Verastem Oncology (NASDAQ: VSTM) to develop a companion diagnostic (CDx) test aimed at improving treatment for patients with recurrent low-grade serous ovarian cancer (LGSOC), a rare and aggressive form of the disease. According to InvestingPro analysis, while Tempus is currently trading above its Fair Value, the company has demonstrated strong revenue growth of 43% over the last twelve months.

The partnership builds on the success of Verastem’s Phase 2 RAMP-201 clinical trial, which led to the U.S. Food and Drug Administration’s accelerated approval of a combination therapy for KRAS-mutated recurrent LGSOC. Tempus’s xT CDx assay, an FDA-approved qualitative Next Generation Sequencing-based in vitro diagnostic device, was instrumental in the confirmatory testing for this trial. InvestingPro data shows that despite operating with moderate debt levels, Tempus maintains a healthy current ratio of 1.71, indicating strong short-term liquidity to support its ongoing research and development initiatives.

The xT CDx assay is now being used in Verastem’s ongoing global Phase 3 RAMP-301 clinical trial as an investigational tool to determine KRAS mutation status in patients. This information will help stratify patients into appropriate cohorts for analysis of the study’s primary and secondary endpoints.

LGSOC typically affects younger women and is known for its high recurrence rate and poor response to chemotherapy, representing 6% to 10% of serous ovarian cancers. The Tempus xT CDx assay is designed to detect genetic alterations in 648 genes and assess microsatellite instability status, using DNA from tumor tissue and matched normal blood or saliva specimens.

Mike Yasiejko, Executive Vice President and General Manager, Genomics, at Tempus, expressed the company’s commitment to addressing the unmet needs of LGSOC patients, who have historically had limited treatment options. John Hayslip, MD, Chief Medical Officer of Verastem Oncology, highlighted the importance of the Tempus xT assay in the development of the CDx assay as part of their post-marketing commitment to the FDA.

This collaboration marks a significant step in providing targeted therapies to patients with recurrent KRAS-mutant LGSOC. The news is based on a press release statement and reflects the ongoing efforts by Tempus and Verastem Oncology to advance precision medicine and improve patient outcomes in oncology. For investors seeking deeper insights into Tempus AI’s financial health and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, one of 1,400+ detailed company analyses available to subscribers, including 8 additional ProTips and extensive financial metrics.

In other recent news, Tempus AI reported a significant increase in its first-quarter 2025 earnings, with revenue surging 75.4% year-over-year to $255.7 million, surpassing the forecast of $248.5 million. The company also improved its earnings per share to -$0.24, slightly better than the anticipated -$0.26. In a strategic move, Tempus AI has entered into a multi-year collaboration with Boehringer Ingelheim to enhance cancer treatment research using AI and real-world data. This partnership aims to speed up drug discovery processes by integrating Tempus’s data and analytical platform with Boehringer Ingelheim’s oncology pipeline.

Additionally, Morgan Stanley raised its price target for Tempus AI to $65 from $60, maintaining an Overweight rating due to the company’s strong first-quarter performance and promising developments in minimal residual disease testing. The confidence in Tempus AI is further supported by a $200 million contract with AstraZeneca and the Pathos foundation, expected to drive growth in the Data and Services business. Despite these positive developments, Tempus AI’s stock experienced a decline, which analysts attribute to broader market trends rather than company-specific issues.

Looking ahead, Tempus AI increased its full-year 2025 revenue guidance to $1.25 billion, projecting an 80% year-over-year growth. The company continues to focus on AI and data infrastructure investments to develop the largest foundation model in oncology. These recent developments underscore Tempus AI’s ongoing commitment to leveraging data and AI for advancements in cancer treatment and diagnostics.

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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