In this ROBO Global Healthcare Technology and Innovation Index spotlight, we take a look at Guardant Health (GH). The index underlies the $58.7 million ROBO Global Healthcare Technology and Innovation ETF. Here, we explore what makes Guardant Health unique within the genomics subsector and dive into its recent performance.
Guardant Health originated in California in 2012. It is a pioneering genomics company and market leader in liquid biopsy testing. Liquid biopsy is a noninvasive method that detects cancer by analyzing traces of tumor DNA in a patient’s blood sample. It offers a less intrusive alternative to traditional tissue biopsies.
Initially recognized for Guardant360 — the first FDA-approved comprehensive liquid biopsy test for late-stage cancer therapy across 50 different cancer types — GH has since expanded its testing applications to maintain its technological leadership. In 2021, it launched Guardant Reveal. That is the first blood-only test for detecting residual disease after surgery or recurrence in colorectal cancer patients.
This year, the company saw Shield become the first blood test approved by the FDA as a primary screening option for colorectal cancer that meets performance requirements for Medicare coverage. GH’s extraordinary global impact was further acknowledged this May by its inclusion in TIME’s list of the 100 most influential companies.
Starting 2024 with strong momentum, Guardant Health reported impressive Q1 results. It exceeded expectations and raised revenue guidance for the year. Q2 continued this strong momentum with total revenue growth of 29% YoY to $177.2 million, driven by robust precision oncology revenue. Clinical test volume increased 14% YoY, reaching 49,400 tests. It achieved a gross margin of 59%. The primary driver of this growth was Guardant360, with contributions from newer products like Guardant360 TissueNext and Guardant360 Response. TissueNext is an NGS-based pan-cancer tissue test analyzing 498 biomarkers. Response is a blood-only test for early detection of treatment efficacy.
Guardant Continues Leading in a Healthcare Emerging Sector
In the last week of August, the company announced plans to raise $400 million through a stock issuance. This led to a 12.5% dilution and a subsequent 10% drop in stock price. There is a substantial burn rate and the likelihood of further dilution. But Guardant continues to lead in an emerging sector of healthcare. We believe its products have strong potential to become part of the standard of care in the future.
Guardant Health recently surpassed 500 peer-reviewed publications, showcasing its innovative products and scientific credibility. The company has an expanding portfolio of cutting-edge diagnostic tools and improving financial metrics. We believe it is well-positioned to play a key role in the future of cancer detection and treatment.
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