Precision Oncology's New Frontier: Why Tempus AI's Collaboration with Verastem Signals a Breakthrough in Rare Cancer Care

The convergence of genomics, AI, and companion diagnostics (CDx) is rewriting the rules of oncology, and Tempus AI’s collaboration with Verastem Oncology marks a pivotal moment in this evolution. Announced today, May 20, 2025, this partnership aims to redefine treatment for a historically underserved population: patients with low-grade serous ovarian cancer (LGSOC), a rare subtype with limited therapeutic options. At its core lies Tempus’ FDA-approved xT CDx, an NGS-based diagnostic platform that could unlock billions in untapped commercial potential—and position TEM as a leader in the diagnostics-driven precision medicine race.

The Underserved LGSOC Market: A Goldmine for Precision Medicine

LGSOC, affecting just 6–10% of ovarian cancer patients, has long been a clinical afterthought. With high recurrence rates and poor response to chemotherapy, patients often face a grim prognosis. Yet this rarity is precisely why Tempus and Verastem’s collaboration is so compelling: the FDA’s accelerated approval of Verastem’s avutometinib-defactinib combination for KRAS-mutated LGSOC in 2024 created a clear pathway for targeted therapies. The problem? Only 15–20% of LGSOC patients carry KRAS mutations, and until now, there was no scalable, standardized method to identify them upfront.

Enter the xT CDx. This assay’s ability to screen 648 genes—including KRAS—for mutations and microsatellite instability (MSI) status in formalin-fixed tumor samples is a game-changer. By enabling real-world, prospective stratification of LGSOC patients in Verastem’s Phase 3 RAMP-301 trial, Tempus is not just improving clinical trial efficiency—it’s building a data moat. Every tumor analyzed feeds Tempus’ proprietary database, which already contains genomic and clinical data from over 400,000 patients. This creates a flywheel effect: more data refines AI models, which in turn improve diagnostic accuracy and therapeutic recommendations.

Regulatory Synergy and Commercial Scalability: A Recipe for Value Creation

The FDA’s accelerated approval of Verastem’s drug combination was conditional on post-marketing studies to confirm clinical benefit—a burden Verastem now shares with Tempus. But this isn’t a regulatory hurdle; it’s a revenue lever. Tempus earns fees for every xT CDx test performed, and the exclusivity of its Chicago lab’s role in the trial positions it as the go-to partner for CDx development in rare cancers. Beyond LGSOC, the xT CDx’s broad gene panel opens doors to other RAS/MAPK-driven cancers, such as certain colorectal and lung tumors.

Consider the math: The global CDx market is projected to hit $7.2 billion by 2030, with oncology diagnostics alone accounting for 60% of growth. Tempus’ early move into this space—with a validated, FDA-approved tool—gives it a head start. Meanwhile, Verastem’s post-marketing obligations ensure recurring revenue streams for Tempus, while the data generated could accelerate new drug partnerships.

Risks, But the Upside Outweighs Them

Critics may cite the risks: regulatory delays, competition from giants like Illumina, or the unpredictability of clinical trial outcomes. Yet Tempus’ AI-driven data platform mitigates these risks. By analyzing real-world evidence from xT CDx tests, Tempus can identify biomarkers for drug response faster than traditional methods. Moreover, the partnership with Verastem demonstrates a clear path to commercialization—a rarity in the diagnostics space.

Why Act Now?

The precision oncology market is at an inflection point. Companies that control the data and diagnostics will dominate. Tempus is already ahead, with a pipeline of 15+ pharmaceutical collaborations and a CDx platform that’s both FDA-approved and AI-enhanced. For investors, this is a buy signal: Tempus is not just a diagnostics player—it’s a data-driven drug development enabler. With LGSOC as its beachhead, the company is primed to capitalize on a $200 billion global oncology market hungry for precision solutions.

The time to act is now. Tempus’ collaboration with Verastem isn’t just about a single drug or cancer type—it’s a blueprint for the future of medicine.