VA expands coverage to include CRC blood test for veterans

PALO ALTO, Calif. - Guardant Health, Inc. (NASDAQ: GH), a precision oncology company with a market capitalization of $5.7 billion, announced that its Shield blood test for colorectal cancer (CRC) screening is now covered by the U.S. Department of Veterans Affairs (VA) for eligible veterans. This coverage extends to U.S. veterans receiving community care authorized by the VA, offering the test as an in-network benefit with no copay for average-risk individuals aged 45 and older. The company has demonstrated impressive growth, with revenue increasing by 31% in the last twelve months, according to InvestingPro data.

The VA’s decision to cover the Shield blood test marks the first time such coverage has been extended to non-Medicare beneficiaries within the 45-64 age group. The VA Community Care Network, which provides healthcare services to veterans through community-based practitioners, caters to approximately 9.1 million beneficiaries. Guardant Health maintains a strong financial position with liquid assets exceeding short-term obligations and a healthy current ratio of 4.68, as revealed by InvestingPro analysis.

AmirAli Talasaz, co-CEO of Guardant Health, expressed pride in the potential lifesaving value of the Shield blood test for veterans and their families. The company views this development as an opportunity to detect more cases of colorectal cancer early when treatment options are more promising.

In July 2024, the U.S. Food and Drug Administration (FDA) approved Shield as the first blood test for primary CRC screening. Subsequently, the Centers for Medicare & Medicaid Services (CMS) granted the test Advanced Diagnostic Laboratory Test (ADLT) status for CRC screening.

The Shield blood test, which is FDA approved for non-invasive CRC screening in average-risk individuals aged 45 and older, can be ordered by any prescribing healthcare provider.

Guardant Health, founded in 2012, specializes in advanced blood and tissue tests, real-world data, and AI analytics, aiming to improve patient care and accelerate new cancer therapies. The company’s tests contribute to better outcomes across various stages of care, ranging from early cancer detection to monitoring and treatment selection for advanced cancer cases. Despite current operating losses, the stock has delivered an impressive 172% return over the past year. For deeper insights into Guardant Health’s financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.

The information for this article is based on a press release statement from Guardant Health, Inc.

In other recent news, Guardant Health has announced significant developments concerning its Shield blood test for colorectal cancer screening. The Shield test has been granted Advanced Diagnostic Laboratory Test (ADLT) status by the Centers for Medicare & Medicaid Services (CMS), allowing for a Medicare reimbursement rate increase to $1,495, up from the previous $920. This change is set to take effect on April 1, 2025, for a nine-month period, with future rates determined by private payer data. Additionally, the test will now be covered for U.S. veterans and eligible family members under the VA Community Care Network, expanding its reach beyond the Medicare population.

Analysts from several firms, including TD Cowen, Citi, and Raymond James, have maintained favorable ratings for Guardant Health, citing the ADLT status as a positive development. TD Cowen reiterated a Buy rating with a $56 price target, while Citi set a $60 target, and Raymond James maintained an Outperform rating with a $59 target. The analysts noted that the higher reimbursement rate is expected to enhance Guardant Health’s revenue and gross margins, with TD Cowen estimating a potential revenue increase of more than 2.5%.

Guardant Health’s management anticipates that the ADLT status will facilitate the expansion of its commercial infrastructure, making the Shield test more widely available. The company is poised to optimize its services for Medicare patients, potentially increasing the Medicare mix and further boosting revenues. This series of developments underscores the company’s efforts to broaden the impact of its screening test and improve early cancer detection.

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