Q4 Insights: Guardant Health is seeking to recover from clinical trial data on its colorectal cancer blood test that disappointed analysts and investors. In preliminary fourth-quarter results released on Monday, the oncology diagnostics company reported a double-digit increase in revenue as a result of rising testing volumes.
Guardant reported 36,000 tests to its clinical customers in the fourth quarter as well as 8,200 tests to its biopharma customers. The clinical and biopharma figures represent year-on-year increases of 41% and 24%, respectively. The preliminary revenue results exceeded estimates by analysts at Goldman Sachs.
“The preliminary revenue beat was largely driven by better than expected clinical test volumes of 36,000 tests vs our estimate of ~34,000 tests sold in 4Q22,” Goldman Sachs analysts wrote in a note to investors.
Growth of the clinical business in the fourth quarter puts Guardant on track to beat full-year analyst estimates.
Guardant ‘thrilled’ by feedback on pivotal data
The preliminary financial results arrived one month after Guardant released data from ECLIPSE, the 20,000-subject pivotal clinical trial of its colorectal cancer blood test.
AmirAli Talasaz, co-founder and co-CEO of Guardant, called the readout “positive” in a statement to disclose the preliminary results, adding that the company was “thrilled with the strong and positive feedback expressed by guideline members, key opinion leaders and patient advocacy leaders.”
Still, the results disappointed investors and the stock plunged 27% on the news.
Guardant shares rose 7%, or $1.84, to $27.79 in trading on Nasdaq after the release of the preliminary results on Monday. Even after that gain, the stock is down from the level it traded at prior to the release of the ECLIPSE data, when the shares were selling for about $45.
