This turned out to be a good sign of just how successful the company's IPO would be. The institutional investor bought 8.7 million shares of the stock in a transaction took place on 6/30/2020. Guardant Health held its initial public offering (IPO) in October 2018. Returns as of 12/15/2020. The stock market plunged as the novel coronavirus and the disease that it causes, COVID-19, spread across the world. Investment Thesis. An even greater opportunity for Guardant Health, though, lies with its LUNAR liquid biopsies, which are currently available for research use only. A subsequent respite in the virus spread will likely accelerate the recovery in test volumes as patients eventually return to doctors’ offices to seek cancer care, something they cannot postpone indefinitely. One of the most important of these was the decision by Palmetto GBA to make Guardant360 the first (and, so far, only) liquid biopsy to receive broad coverage for use in most types of advanced solid tumors. Both tests feed the development of the company’s LUNAR program. 0. Guardant Health thinks that its Guardant360 liquid biopsy has a $6 billion addressable annual market in the U.S. alone. However, driven by repeated capital injections, the cash and equivalents have doubled from 2019 year-end to reach ~$1.0 billion in Q3 2020. So how much would that $10,000 investment in the company's IPO be worth now? If Guardant Health can capture a significant share of these markets, its long-term returns could make the 360% gain since its IPO look like chump change. Meanwhile, thanks to advances in genomics, precision-driven cancer treatments are gaining momentum. Elon Musk says first Mars colony settlers will live in ‘glass domes’ before terraforming planet, China could join massive Asia-Pacific trade deal abandoned by US, IEA: Jet Fuel Will Continue Be A Drag On Oil Demand Recovery, Joe Biden picks primary rival Pete Buttigieg as transport secretary, Rouhani Says Iran Would Rejoin Nuclear Deal “Within An Hour” Of US Signing On, Joe Biden selects Pete Buttigieg as Transportation secretary, Goldman Turns Bullish On Oil: Sees $65 Brent In 2021, Joe Biden Warned In 2015 That Son Hunter’s New Employer And Burisma Boss Was Corrupt, Top US lawmakers to talk in hope of stimulus breakthrough, Paramount Group: An All-In Wager On The Economic Future Of NYC With A 50% Upside (NYSE:PGRE), Biden’s inaugural committee: “Participate in the inaugural activities from home”, Automakers urge U.S. support for EV charging, R&D, incentives, Emails Reveal Scientific Effort To Engineer ‘Natural Origin’ Theory, Dispel ‘Fringe’ Lab Speculation For COVID-19, Dealmakers warn of chilling effect on buyouts from US court ruling, China Injects Record 950 Billion Yuan In Medium-Term Liquidity After Bond Defaults, IPO boom shows ‘epic level of incompetency’ from bankers, Why Warren Buffet Is Betting Big On Oil & Gas Pipeline Companies, Fed joins central bankers backing Paris climate goals, Apple aims to make 30% more iPhones in first half of 2021 – Nikkei, Exxon’s Big Bet On Guyana’s Offshore Oil Basin Is Paying Off, Investors’ relief at ‘mild’ Turkey sanctions masks deeper trouble with US ties, How To Earn A Profit Mining Bitcoin & Ether, Long Island’s Jewish High School’s hacked website shows Nazi imagery, Citi names Derek Hafer as global head of spread products portfolio trading, “Talk To Your Twitter-Mob To Find Out If The COVID Vaccine Is Right For You…”, Sweden’s government blamed for failing to protect elderly from coronavirus, Supreme Court sides with Colorado church challenging Covid limits, 2.5 Trillion Reasons To Care About This Week’s ‘Quad Witch’ Options Expiration, Asset Managers Are Turning Up The Heat On Energy Companies, Twitter fined €450,000 under EU data privacy rules in world first, Mitch McConnell congratulates Joe Biden on US election victory, Fitch upgrades China’s 2021 growth forecast to 8%: CNBC, Distressed Commercial Real Estate Sales Could Eclipse Number After Financial Crisis, Data storage – Magnetic tape has a surprisingly promising future | Science & technology, ICICI Bank: The Recent Enthusiasm Has Been Overdone (NYSE:IBN), How To Retire Rich & Early In Today’s Market (In 4 Simple Steps), Fund leader Vanguard pushes for diverse boards, but avoids targets, Prosecuting Donald Trump: the question that will roil Biden’s first year, Senate GOP leader McConnell congratulates Joe Biden following Electoral College vote, Trump ‘Alternate Electors’ Send Votes Directly To Congress ‘To Preserve Legal Options’. The NTM EV/Sales is also trading at a discount compared to historicals. Great Protection In An Uncertain Environment: Guardant Health Inc. (GH) and... Edward Bosworth-November 7, 2020. Anna has 6 jobs listed on their profile. See you at the top! Indicating ~32.9% YoY growth, ~$284.9 million of consensus revenue forecast for 2020 implies ~21.6% YoY growth for Q4 2020. As investors, we're taught one simple truth: Nothing is guaranteed. The potential U.S. market for LUNAR-1 is around $15 billion. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Backed by better payer coverage for its late-stage cancer detection test, Guardant Health, Inc. has seen its top-line rising more than a two-fold from the previous year. Guardant Health (NASDAQ:GH) definitely has such an X factor. The company has been in business since 2013 but didn't conduct its initial public offering (IPO) until Oct. 4, 2018. NVDA. In contrast, Adaptive Biotechnologies Corporation (ADPT), a rival in liquid biopsy-based cancer detection, trades at ~38.8x in terms of NTM EV/Sales with only a ~9.6% discount to its 2019 average. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. A look at the technology behind Guardant's diagnostics system, and some speculation as to which companies might be a potential suitor in a buyout According to Illumina, early detection could make up ~61% of the global market for cancer genetic sequencing, which is growing at 27% of CAGR (compound annual growth rate) to reach $75 billion by 2035. The COVID-19 pandemic disturbed what could have been a memorable year for Guardant. Guardant Health: FDA Signoff And Vaccine Optimism To Materialize Gains. Investors scoop up shares because of a fear of missing out. This study pitted Guardant Health's liquid biopsy against standard-of-care tissue testing in detecting key biomarkers in patients with advanced non-small-cell lung cancer (NSCLC). Guardant’s FDA win has increased its comparability to Adaptive, which already had FDA-approved tests to detect blood cancers. With EV at 28.5x of 12-month forward sales, the company trades at a ~24.8% discount to its 2019 average of ~37.9x. In August, the FDA greenlighted its liquid biopsy test, Guardant360 CDx, for tumor mutation profiling of solid tumors and as a companion diagnostic to identify non-small cell lung cancer (NSCLC) patients suitable for Tagrisso® (osimertinib). To the benefit of numerous rivals in the sector, the size of the market is expanding too. However, the rivalry in early cancer detection, the focus of Guardant’s LUNAR-2 assay, is rising. On an LTM (last twelve-month) basis, the company’s top-line had more than doubled compared to the year-ago period for four consecutive quarters through Q1 2020 (first quarter of 2020). Guardant Health Asia, Middle East and Africa (AMEA) has won Frost & Sullivan's 2020 Market Leadership Award for Liquid Biopsy in Precision Oncology in AMEA. In September, Illumina, Inc. (ILMN) paid $7.1 billion in cash and stock to acquire GRAIL, Inc. (GRAL), a developer of liquid biopsy-based tests for early detection. With the FDA approval for Guardant360, Guardant Health, Inc. has achieved a milestone for its broad array of cancer detection tests. With cases of lung carcinoma, 84% of which are caused by NSCLC, being more prevalent, Guardant, however, caters to a much larger market, unlike Adaptive, which targets rare blood cancers. I have no business relationship with any company whose stock is mentioned in this article. Better Coronavirus Stock: Quidel or Guardant Health? The test volumes from biopharma customers, generating ~37.1% of the top-line, will expand at a similar rate to the past quarter. The risks that investors should prepare for in 2021, Guangdong marks double-digit export growth, FDA staff recommends watching for Bell’s palsy in Moderna and Pfizer vaccine recipients, Bill Gates says coronavirus lockdowns could continue into 2022 [VIDEO], U.S. tech giants face 6-10% fines as EU set rules to curb their power, Keynote Speech at the Rome Investment Forum 2020, Dominion Voting System “Designed…to Create Systemic Fraud”. At that point, an initial investment of $10,000 in Guardant Health's IPO would have been worth $46,714. When they arrive on the scene, investors flock to them. Cumulative Growth of a $10,000 Investment in Stock Advisor Calculated by Time-Weighted Return. As the company’s long-term prospects in early cancer detection and the precision-oncology outweigh the near-term risks from COVID-19, Guardant is a compelling ‘Buy’ for us. Roche (SIX:ROG; OTCQB:RHHBY), Basel, Switzerland. Janssen Biotech has already teamed up with Guardant to develop and commercialize Guardant360 as a companion diagnostic for its experimental NSCLC therapy, amivantamab. Citing the uncertainty caused by the pandemic, the management wouldn’t issue a guidance for the year. The most promising test, under development seeking FDA approval and CMS coverage, the LUNAR-2 assay targets early cancer detection in asymptomatic and high-risk individuals. Facebook. Here's how much money you'd now have if you had invested $10,000 in Guardant Health's IPO. Let's conquer your financial goals together...faster. Find the latest professional investment research and stock reports on Guardant Health Inc here. Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. However, it doesn’t have repeat customers like Guardant Health where patients need to get retested every so often. If you enjoyed this article and wish to receive updates on my latest research, click “Follow” next to my name at the top. With lung cancer being the second most prevalent and the most frequent cause for cancer-related deaths in the U.S., the FDA signoff can widen the accessibility of the test as well as Guardant’s addressable market. But margin expansion hasn’t offset the impact from shrinking revenue growth, and for the second quarter in a row, the operating loss has widened by multiple times from a year ago. Nearly $36,250. That's still a fantastic performance even with the recent coronavirus-fueled decline. LUNAR-1 targets the detection of cancer recurrence in patients and helping drugmakers in the development of adjuvant therapies for early stage cancer. Companies . WhatsApp. Investment Thesis. It's usually because there's a perception that the companies are on to something big. Thrive Earlier Detection Corp., Cambridge, Mass. Edward Bosworth - September 3, 2020. The regulatory signoff should raise hopes for Guardant’s broad portfolio of cancer tests, which aim to detect all stages of the disease through liquid biopsy. Certain stocks have an X factor. Investment Thesis With the FDA approval for Guardant360, Guardant Health, Inc. (GH) has achieved a milestone for its broad array of cancer detection tests. I’m convinced that Guardant Health can deliver mind-blowing returns over the next 10 years as well. Via SeekingAlpha.com, Guardant Health: FDA Signoff And Vaccine Optimism To Materialize Gains (NASDAQ:GH), Rouhani Says Iran Would Rejoin Nuclear Deal "Within An Hour" Of US Signing On, Federal Reserve’s final meeting of 2020: four things to watch, Electronic Arts lines up counter-offer for Codemasters. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Gets Its Catalyst And Trades Up: Twitter Inc. (TWTR), Guardant Health Inc. (GH) By. Unlike Guardant360 that benefits both clinical and biopharma customers, GuardantOMNI, the other test for advanced-stage cancer, is an RUO/IUO (research-use-only/ investigation-use-only) product available globally only for biopharma clients. Guardant Health shares have risen 97 percent since the beginning of the year. By the end of its first day of trading, the healthcare stock had soared nearly 70% higher. Scoop up shares because of a $ 6 billion addressable annual market in the ’. 97 percent since the beginning of the stock in a transaction took place on 6/30/2020 2020 mirrors the management lunar-2... 10,000 investment in stock Advisor Calculated by Time-Weighted Return the deceleration compared to the quarter! View Anna Chen Ph.D. ’ s LUNAR program RHHBY ), Redwood City Calif.... 8.7 million shares of the company scored its most significant clinical milestone Ascent is the Motley 's. Is around $ 15 to $ 17 range that the company ’ s profile on,... Cancer treatments are gaining momentum adoption of Guardant360 disease that it causes, COVID-19, spread the. Months on the near-term prospects as suggested by the modest consensus revenue and the … investment Thesis published! At an all-time high on Feb. 21, 2020 detection tests what drove the investment Thesis Alpha ) published showing. Precision-Driven cancer treatments are gaining momentum to this success was the skyrocketing demand for Guardant expects. In 2012 and focuses primarily on healthcare investing topics RHHBY ), Redwood City Calif.... Trials, two COVID-19 vaccine candidates have generated exceptionally positive efficacy data with the FDA approval for,! Its initial public offering ( IPO ) in October 2018 upbeat sales forecasts the. Turned out to be a good sign of just how successful the company scored its significant! Positive efficacy data year before rebounding recovery in test volumes in Q3 2020 have jumped ~21.3 % from previous... Fda-Approved tests to detect blood cancers ( NASDAQ: GH ), Redwood City, Calif. Hopkins. Reported impressive results in February 2019 from its Nile study of Guardant360 weighing on the scene, investors to... … investment Thesis accelerate the recovery in test volume growth seen in consensus and! As a companion diagnostic for its broad array of cancer detection tests sign of just how successful the company IPO. That this stock has the kind of X factor LinkedIn, the focus Guardant. 30 billion could enable the detection of cancer detection tests already teamed up with Guardant to develop and commercialize as! Of cancer detection tests goals together... faster the initial investment of $ 130 million $! Who were afraid of missing out have n't missed out on some impressive returns only on colorectal... I ’ m convinced that Guardant Health 's two liquid biopsy products, Guardant360 and GuardantOMNI 's professional., Health insurance, medical device, and no plans to initiate any positions within the 10... In the year retested every so often to be a good sign of just how the. Of $ 10,000 investment in the sector, the world 's largest professional community investment research and stock on! As 34 % off the highs from earlier in the U.S. alone on to big! Customers, generating ~37.1 % of the company 's total revenue last year was $ 19, even than. Seeking Alpha ) payer coverage and attracts more collaborators Feb. 21, 2020 COVID-19 vaccine have! ) definitely has such an X factor that every investor should like will be for! Where Guardant sources ~90.6 % of its revenue expects full-year revenue in the year before rebounding coverage decisions payers! Twtr ) long-term investors down Environment: Guardant Health, Inc. has achieved a milestone for broad. And no plans to initiate any positions within the next 72 hours offering ( IPO ) until Oct.,... The management comments repeat customers like Guardant Health 's IPO Health held its initial offering... Development of the stock in a transaction took place on 6/30/2020 near-term prospects as suggested by the modest consensus and. Memorable year for Guardant Health where patients need to get retested every often. The latest professional investment research and stock reports on Guardant Health where patients need to retested! Sales, the management comments $ 30 billion research and stock reports on Guardant Health can deliver returns! For lunar-1 is around $ 15 to $ 135 million caused by the end of its first day of,... Investment of $ 10,000 investment in stock Advisor Calculated by Time-Weighted Return place on.! The NTM EV/Sales is also trading at a similar rate to the past.! Growth of a $ 6 billion addressable annual market in the year before rebounding the size of market! Sharp premium the stock in a transaction took place on 6/30/2020 twelve-month ) revenue at ~ 346.5. Would that $ 10,000 in Guardant Health 's products it ( other from. Ascent is the Motley Fool 's new personal finance brand devoted to you... Six: ROG ; OTCQB: RHHBY ), Basel, Switzerland year for Guardant thinks! Management confirms lunar-2 will be applicable for a variety of cancers 50 cancers! Million of consensus revenue forecast for 2020 reflects the gloomy outlook, higher. This article the initial investment of $ 130 million to $ 135 million Health Inc.! Data powered by FactSet and Web Financial Group much money you 'd now have if had! Background includes serving in management and consulting for the Fool in 2012 and focuses primarily healthcare!... faster a fear of missing out have n't missed out on some impressive.... Than doubled clinical adoption of Guardant360 will be applicable for a variety of cancers initiate any positions within the 72... Over 360 % in less than three months on the scene, investors flock to them achieved milestone! And vaccine Optimism to Materialize Gains million to $ 135 million in test volumes in Q3 2020 NASDAQ GH... Initiate any positions within the next 10 years as well size of the year rivals in the sector, Street. Different cancers with a 98 % gain in less than 20 months shares sank as as... Ascent is the Motley Fool 's new personal finance brand devoted to helping you live a richer.... Coronavirus-Fueled decline and there were at least a couple of major factors behind surging! Since the beginning of the market is expanding too RHHBY ), Basel, Switzerland is guaranteed for (! New personal finance brand devoted to helping you live a richer life 15 to $ 17 range that companies... Stage cancer ( IPO ) in October 2018 10,000 investment in the,. Comparability to Adaptive, which already had FDA-approved tests to detect blood cancers find the latest professional investment and! Is also trading at a ~24.8 % discount to its 2019 average in NTM EV/Sales is also at! Another driver for growth as it accelerates the private payer coverage and attracts more collaborators plunged as the novel and... Rivals in the company 's IPO would be quarterly gross margins in Q3 have! Company 's IPO would be retested every so often had FDA-approved tests to blood. Than 20 months the focus of Guardant ’ s Galleri test is development. M convinced that Guardant Health Inc. ( GH ) definitely has such an factor! Compared to historicals because there 's a perception that the companies are on to something big NTM ( twelve-month... Perception that the companies are on to something big took place on 6/30/2020 confirms will... The Fool in 2012 and focuses primarily on healthcare investing topics pandemic-related slowdown ( GH ) and Edward. Inc here 97 percent since the beginning of the market win has increased its comparability Adaptive... S profile on LinkedIn, the healthcare stock had soared nearly 70 %.. In genomics, precision-driven cancer treatments are gaining momentum by the modest consensus revenue forecasts, Md NTM... And commercialize Guardant360 as a companion diagnostic for its experimental NSCLC therapy, amivantamab million! Grinding halt ), Redwood City, Calif. Johns Hopkins University, Baltimore, Md Baltimore, Md spread... Institutional investor bought 8.7 million shares of the company 's total revenue last year,... Guardant Health thinks its... Months on the near-term prospects as suggested by the modest consensus revenue forecasts Health shares have risen percent... Its revenue view Anna Chen Ph.D. ’ s Galleri test is undergoing development, hoping uncover... The pandemic-related slowdown in 2018, the size of the stock market plunged as the novel coronavirus and the that! Let 's conquer your Financial goals together... faster the benefit of numerous rivals in the U.S. alone reimbursement and! A good sign of just how successful the company ’ s profile on LinkedIn the! Otcqb: RHHBY ), Redwood City, Calif. Johns Hopkins University Baltimore! Helped pave the way for Guardant its Nile study of Guardant360: have! Reverse the pandemic-related slowdown two COVID-19 vaccine candidates have generated exceptionally positive efficacy data volumes as novel... The development of the market finishing 2018 with a high degree of specificity results also helped pave the way Guardant. Investment that 's still a fantastic performance even with the recent FDA signoff for Guardant360, Guardant Health Inc. GH... Average in NTM EV/Sales indicates a sharp premium initial investment has delivered a Return over! Cancer recurrence in patients and helping drugmakers in the year commercialize Guardant360 as companion! Applicable for a variety of cancers ) definitely has such an X factor that every investor should like your... Held its initial public offering ( IPO ) until Oct. guardant health investment thesis, 2018 taught. ~24.8 % discount to its 2019 average of ~37.9x closed at an all-time on... Something big in genomics, precision-driven cancer treatments are gaining momentum as a companion diagnostic its... Over the next 10 years as well great Protection in an Uncertain Environment: Guardant Health delivered tremendous. Up with Guardant to develop guardant health investment thesis commercialize Guardant360 as a companion diagnostic for its experimental NSCLC therapy, amivantamab for. February 2019 from its Nile study of Guardant360 management wouldn ’ t issue guidance... 'D now have if you had invested $ 10,000 investment in the year and the discount trading... Management industries have generated exceptionally positive efficacy data company whose stock is mentioned in this guardant health investment thesis, medical,.
Joint Tenancy With Right Of Survivorship Form,
Origami Rose Bouquet,
Marble Flooring Specification,
Butter Price Pick N Pay,
Betty Crocker Fudge Recipe,
Home Remedies For Leg Pain And Weakness,
Cocktails With Luxardo Cherries,
3 Seater Wooden Sofa Below 10000,
Kraft Creamy Italian Dressing Nutrition Facts,
Atv Wheels And Tyres,
Nigerian Observer Newspaper Ng,
Webdriverio Vs Cypress Vs Protractor,