Precision oncology company Guardant Health (NASDAQ:GH) revealed that its pivotal ECLIPSE study evaluating a blood test for detecting colorectal cancer showed 83% sensitivity. The test showed 13% sensitivity in detecting advanced adenomas. Nonetheless, Guardant Health stock tanked nearly 35% in Thursday’s extended trading as investors were disappointed that the test results lagged the performance of rival Exact Sciences’ (EXAS) Cologuard test.
Exact Sciences stock surged over 23% in Thursday’s after-hours trading. Exact Sciences’ Cologuard is a stool-based DNA test that identifies 92% of colorectal cancers and 42% of pre-cancerous polyps.
Guardant remains optimistic about its product and intends to expand this test to detect other cancer types, including lung cancer. AmirAli Talasaz, Guardant Health’s co-CEO, stated, “Over 49 million eligible people in the U.S. remain unscreened for colorectal cancer. We are confident that a high-sensitivity blood test can play a critical role in improving screening adherence rates by offering an accurate and convenient blood test to those reluctant to get screened.”
Guardant Health intends to complete its premarket approval submission to the U.S. Food and Drug Administration in the first quarter of 2023. The company also stated that the results of its blood test exceed the Centers for Medicare & Medicaid Services’ performance criteria for reimbursement.
Is Guardant Health a Good Stock to Buy?
Wall Street’s Strong Buy consensus rating for Guardant Health is based on 11 Buys versus one Hold. The average GH stock price target of $79.58 suggests nearly 93% upside potential from current levels. Shares have plunged 59% year-to-date.
