The shares of CareDx (CDNA) rose 1.4% to $88.59 on June 8 after it acquired Transplant Hero, a New York-based app provider that focuses on helping transplant patients manage their medications. The financial terms of the deal have not been disclosed so far.
CareDx is a molecular diagnostics company that is into the discovery, development and commercialization of clinically differentiated diagnostic surveillance solutions for transplant patients.
The acquisition is expected to enhance CareDx’s digital portfolio, which includes a comprehensive suite of cloud-based solutions, as well as software for transplant centers and dialysis providers.
The acquisition is also expected to aid CDNA’s mobile health app — AlloCare — which manages patients’ wellness routine before and after transplant. (See CDNA stock analysis on TipRanks)
CDNA CEO Reg Seeto said, “CareDx and Transplant Hero are both dedicated to improving outcomes for transplant patients. We will be able to leverage Transplant Hero’s social media presence to augment AlloCare.”
On June 3, Goldman Sachs analyst Matthew Sykes initiated coverage on CDNA with a Buy rating and the price target of $95 (7.2% upside potential).
Sykes believes CareDx has sustainable revenue growth with a robust range of services across the transplant ecosystem.
Overall, the stock has a Strong Buy consensus rating based on 4 Buys and 1 Hold. CDNA average analyst price target of $100 implies a 12.9% upside potential. Shares of CDNA have jumped 152.9% over the past year.
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