
The final quarter of 2024 proved to be a turbulent period for the healthcare sector, marked by both exciting advancements and unforeseen challenges. While liquid biopsy companies demonstrated robust performance with their innovative cancer detection methods, the U.S. presidential election introduced a wave of volatility. The appointment of Robert F. Kennedy Jr. to the helm of the Department of Health and Human Services brought with it policy uncertainties, particularly impacting companies involved in vaccine development.
This piece looks at the top and bottom performers in VettaFi’s ROBO Global Healthcare Technology and Innovation Index during this dynamic period, examining the factors that fueled their success or contributed to their struggles
VettaFi’s ROBO Global Healthcare Technology and Innovation Index provides investors with a comprehensive, transparent, and diversified benchmark representing the global value chain of disruptive and emerging technologies in the healthcare sector. The index holds companies that derive a distinct portion of their business and revenue from the field of healthcare technologies and have the potential to grow within this space through innovation and/or market adoption of their products and/or services.
Top Contributors (Return/Contribution)
NovoCure, Medical Instruments +90.6%, +1.14%
NovoCure is a global oncology company specializing in the development and commercialization of tumor treating fields (TTFields), a non-invasive therapy that utilizes electric fields to disrupt cancer cell division and inhibit tumor growth. The technology is currently approved for treating aggressive cancers such as glioblastoma and mesothelioma, with ongoing clinical trials investigating its potential applications for other solid tumors, including pancreatic and lung cancers.
Despite a challenging start to the year, following the failure of their ovarian cancer clinical trial, NovoCure ended the year on a strong note. In December, the company announced that its experimental therapy met the primary endpoint in a late-stage trial, demonstrating extended survival in patients with advanced pancreatic cancer when combined with chemotherapy.
Guardant Health, Genomics +33.17%, +0.56%
Guardant Health is a genomics pioneer and market leader in liquid biopsy testing. The company was first known for Guardant 360, the first FDA-approved comprehensive liquid biopsy test that helps determine which therapy to use to treat late-stage cancer patients across 50 different cancer types. Guardant continues to strengthen its market and technology leading positions with more testing applications.
In 2021, it launched Guardant Reveal, the first blood-only test for detection of residual disease after surgery or recurrence, for patients with colorectal cancer. Over time, the company seeks to provide testing capabilities that range every stage of cancer, for both liquid and tissue samples.
In 2024, Guardant Health received approval for its Shield blood test as a primary non-invasive screening option for colorectal cancer. This quarter, the company successfully launched Shield IVD, secured Medicare pricing approvals for both Shield and TissueNext, and saw the removal of cost-sharing for follow-up colonoscopies after blood-based screenings for Medicare beneficiaries. Additionally, Guardant Health raised its full-year guidance to a new range of $720 to $725 million, reflecting anticipated growth of 28% to 29%.
Masimo Corporation, Diagnostics, +29.98%, +0.35%
Masimo Corporation is a global medical technology company that develops innovative noninvasive monitoring solutions. They specialize in advanced sensors and algorithms used to measure vital health parameters such as oxygen saturation, pulse rate, and other critical metrics in patients.
The company announced strong Q4 2024 revenue and earnings growth, driven by continued demand for its healthcare products. Masimo remains focused on improving operational efficiency and margins, while also prioritizing strategic initiatives such as the separation of its consumer business and the search for a new CEO with medtech expertise. Looking ahead for 2025–2026, their healthcare margins are expected to reach at least 26% due to cost initiatives and operating margin improvements.
Bottom Contributors (Return/Contribution)
Moderna, Precision Medicine, -12.96%, -0.75%
Moderna, a leading mRNA vaccine developer, faced challenges in the recent quarter, following lowered guidance from the previous period and concerns about its ability to execute an aggressive R&D cost restructuring plan. The company’s outlook was further complicated by the appointment of Robert F. Kennedy Jr. to lead the Department of Health and Human Services, given his widely perceived skepticism toward vaccines.
While Moderna received approval for its RSV vaccine, the late-season timing limited its impact, as many clients had already finalized their orders. Despite these headwinds, Moderna retains one of the most promising mRNA product pipelines across various therapeutic areas.
Tempus AI, Data Analytics, -40.35%, -0.61%
Tempus operates in two primary segments: genomics and data services. Its genomics division specializes in optimizing cancer treatment by analyzing tumor DNA and RNA. This data, combined with AI-driven insights, helps physicians identify the most effective therapies for individual patients.
Notably, Tempus requires access to patient data, which it leverages to refine its AI algorithms and potentially monetize through data sales. This data-centric model presents significant growth opportunities, particularly if its data & services segment and its suite of apps gain significant traction.
Following its recent IPO, Tempus experienced increased stock volatility, exacerbated by the expiration of the lock-up period, allowing early investors to sell their shares and realize profits. However, the company announced positive developments during its latest earnings call: securing Medicare coverage for some of its cardiac dysfunction algorithms and becoming an in-network provider for Blue Cross Blue Shield in California and Illinois.
CareDX, Genomics, -31.43%, -0.45%
CareDx is a leading provider of genomic-based solutions that address the healthcare needs of transplant patients. With a vertically integrated approach, the company offers services across the entire transplant continuum, from identifying suitable transplant candidates to matching recipients with donors.
During the recent quarter, CareDx demonstrated growth across all business segments, including testing services, digital solutions, and laboratory products. This growth resulted in a 23% year-over-year increase in revenue and a 16% rise in testing volume.
Despite a pullback in its stock price following a strong year with a 75.8% return, CareDx remains focused on its strategic initiatives. These include reducing customer acquisition costs, expanding revenue through cross-selling to existing clients, and improving operational leverage to drive further growth and efficiency.
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VettaFi LLC (“VettaFi”) is the index provider for HTEC, for which it receives an index licensing fee. However, HTEC is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of HTEC.