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  • Writer's pictureAbacus Research

Guardant Health

This may not be perfect timing for a high growth healthcare tech stock, however Guardant Health is a company we want to own, the size of the opportunity and positioning are too good to ignore. 

GH is a potentially dominant company within diagnostic tests for genotyping cancers as we think Guardant has a significant first mover advantage: more volume equals more data/intelligence equals higher accuracy. 

The August 2020 FDA approval, along with expanded Medicare coverage are likely to be major catalysts to volume, market growth and the adoption of liquid biopsy.

  • Liquid biopsy is a blood test that enables cancer genotyping. 

  • Comprehensive gene profiling offered by Guardant360 enables doctors to test for ‘all’ genes with one test.

Complexity in treating cancers is increasing, almost 40% of new cancer drugs coming into the market are for targeted gene therapies. This will require companion diagnostics or, a broad gene test such as Guardant 360.

We expect growth to return to high levels after a Covid-induced drop. 

Potential Upside:     $200 (+100 to 150%)

Sensible Downside: $56 (-38%)

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