Guardant Health shares drop 9% after data release for Shield colorectal cancer screening test.

Guardant Health's stock dropped around 9% in premarket trading after the company shared data from a clinical trial for its latest colorectal cancer screening algorithm, Shield blood test. The study is an extension of Guardant's registrational trial and aims to evaluate the test's effectiveness in detecting colorectal cancer in a population of 50,000 asymptomatic individuals. The results showed that Shield had a sensitivity of 92.3% and a specificity of 90.2% for detecting stage I to III colorectal cancer.

Guardant Health's stock (GH) dropped around 9% in premarket trading after the company shared data from a clinical trial for its latest colorectal cancer screening algorithm, Shield blood test. The study, an extension of Guardant's registrational trial, aimed to evaluate the test's effectiveness in detecting colorectal cancer in a population of 50,000 asymptomatic individuals.

The results showed that Shield had a sensitivity of 92.3% and a specificity of 90.2% for detecting stage I to III colorectal cancer. Sensitivity, which measures the test's ability to correctly identify those with the disease, was notably higher than the first iteration of the test, which had a sensitivity of 83% [1]. Specificity, which measures the test's ability to correctly identify those without the disease, remained consistent at 90%.

The clinical validation results are a significant step forward for Guardant Health, which is competing with Exact Sciences (EXAS) in the blood-based colorectal cancer screening market. Exact Sciences' Cologuard test has a sensitivity of 73% for detecting colorectal cancer, while its sensitivity for advanced precancerous polyps is 14% [2]. Guardant's Shield test, with its improved sensitivity, could provide a more accurate and reliable screening option.

Guardant Health's stock has been on a rollercoaster ride in recent months. It surged over 167% in the past year and reached a 52-week high of $68 in August. However, the company's stock has been volatile, dropping to a three-year low in July before rebounding [1].

Despite the recent drop in stock price, analysts remain optimistic about Guardant Health's long-term prospects. Evercore ISI analyst Vijay Kumar maintained an outperform rating on Guardant Health stock, noting that the company's work on tests for targeted cancer treatments and monitoring cancer relapse is worth $7 billion [1].

References:
[1] https://www.investors.com/news/technology/guardant-health-stock-colorectal-cancer-screening-shield-v2/?mod=newsviewer_click&refcode=aflMarketWatch&src=A00619
[2] https://www.investing.com/news/company-news/guardant-healths-shield-blood-test-shows-84-sensitivity-for-colorectal-cancer-93CH-4224238