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CareDx, Inc. (NASDAQ:CDNA), a medical laboratory services provider with a market capitalization of nearly $1 billion, has amended the severance agreement for its Chief Financial Officer, Abhishek Jain, as disclosed in a recent SEC filing. The company, which InvestingPro analysis shows is currently trading below its Fair Value, has demonstrated strong financial health with a current ratio of 3.94 and impressive revenue growth of 19% over the last twelve months. The new terms, effective as of March 27, 2025, outline enhanced benefits in the event of a change of control at the company or if Jain’s employment is terminated under certain conditions.
According to the amended agreement, if a change of control occurs and Jain is let go without cause or resigns for a good reason within a specified period around the change, he will receive a lump sum payment equal to a year’s salary at the highest recent rate. Additionally, all of his unvested equity awards will vest immediately, with performance criteria considered met at target levels. Jain is also set to receive a payment equal to his annual target bonus and up to a year’s worth of COBRA premium reimbursements for himself and his dependents.
If Jain’s departure does not coincide with a change of control, he is still entitled to a year’s severance based on his annual salary and COBRA premium reimbursements, under similar terms. These benefits are contingent upon Jain signing a separation agreement and releasing any claims against CareDx.
The specifics of this revised severance agreement are detailed in the full text of the document, which is filed as Exhibit 10.1 with the SEC. The information is based on the company’s latest Form 8-K filing.
Investors and market watchers often scrutinize executive compensation and severance agreements as they can impact a company’s financial obligations and management stability, especially in the context of potential mergers or acquisitions. CareDx’s move to secure Jain’s position with this amended agreement comes as part of standard corporate governance practices. According to InvestingPro, the company maintains a strong financial position with more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. Subscribers to InvestingPro can access 8 additional key insights and a comprehensive Pro Research Report that provides deep-dive analysis of CareDx’s financial health and market position.
In other recent news, CareDx reported its financial earnings for the fourth quarter and full-year 2024, revealing significant growth. The company posted a total revenue of $86.6 million for Q4 2024, a 32% year-over-year increase, exceeding analysts’ expectations of $85.5 million. CareDx also reported an earnings per share (EPS) of $0.18, surpassing the forecasted loss of $0.23. This was a notable turnaround, partly due to a $96.3 million reversal of litigation accrual following a District Court ruling. For the full year 2024, CareDx’s revenue reached $333.8 million, marking a 19% increase, with testing revenue contributing $249.4 million. The company ended the year with $261 million in cash and no debt, highlighting its strong financial position. Looking forward, CareDx has forecasted 2025 revenue between $365 million and $375 million, anticipating mid-teens growth in test volume. Meanwhile, H.C. Wainwright adjusted its price target for CareDx to $25, down from $26, while maintaining a Neutral rating, reflecting the company’s recent financial performance and market dynamics.
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