Baird calls NCCN update ‘step’ toward stronger potential Natera reimbursement

Baird notes that the National Comprehensive Cancer Network, or NCCN, posted its "Colon Cancer Version 1.2023" guidelines yesterday, which added this footnote to its algorithm section: "There is currently insufficient evidence to recommend use of circulating tumor DNA – ctDNA – assays outside of a clinical trial. Deescalation of care is not recommended based on ctDNA results. Participation in clinical trials is encouraged." NCCN acknowledges data support Natera’s Signatera as a prognostic marker, but stops short of recommending in routine clinical use while encouraging the use in clinical trials to generate more data, said the analyst. The firm doesn’t expect this update to drive reimbursement updates given NCCN stopped short of recommending ctDNA outside of trials, but said it view ctDNA’s inclusion in the discussion "as a first step toward stronger potential inclusion in the future." Baird has an Outperform rating and $65 price target on Natera shares.