U.S.-based Tempus AI (TEM) stock is up in early trading on Monday. Yesterday, the company received FDA clearance for its RNA-based Tempus xR IVD device. Following the news, TEM stock hit an all-time high of $97.39 but gave back gains, closing the day down 2.7%. Shares are climbing again in pre-market hours, up 2% as investors continue to cheer the news.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Tempus AI specializes in data-driven solutions for the healthcare industry with a focus on oncology and genomics.
What It Means for Tempus AI
The Tempus xR IVD device, which got 510(k) clearance from the FDA, is designed for tumor analysis. The diagnostic tool uses next-generation sequencing to analyze RNA from tumor samples. This helps identify the molecular pathways that drive disease progression.
Importantly, the tool helps drugmakers identify patients most likely to respond to cancer treatments. This patient-selection capability can make clinical trials more efficient, allowing drug companies to focus on patients with the highest likelihood of positive outcomes. Therefore, the FDA clearance could open new commercial opportunities for Tempus AI with biopharma partners.
Tempus’ Chief Scientific Officer Kate Sasser emphasized the potential of RNA sequencing technology, noting that while the scientific community has long recognized RNA’s value, its full therapeutic potential is only now being realized.
For context, RNA is like a messenger copy of DNA. Scientists study RNA to understand how cells function, detect diseases such as cancer, and develop new treatments.
Is Tempus a Good Stock to Buy?
On TipRanks, TEM stock has received a Moderate Buy rating based on six Buys and five Holds assigned over the last three months. The Tempus AI share price forecast is $73.30, which implies a decline of 14.64% from the current level.
