Guardant Health Inc (NASDAQ:GH) stock plunged on Friday after the firm released results from a study of its colon cancer blood test that showed disappointing accuracy rates.
Although the test accurately identified the presence of cancer or precancer 83% of the time, investors were hoping to see at least an 85% accuracy rate, Bloomberg reported.
Guardant’s shares plummeted to US$28.65 on Friday in New York, representing a 38% decline as of midmorning.
In contrast, shares of Exact Sciences (NASDAQ:EXAS) Corp, which is advancing its own colorectal cancer detection test, were up over 20%. Exact’s test looks for signs of colorectal cancer in stool samples and over 90% accurate, according to reports.
Guardant’s co-CEO AmirAli Talasaz remained confident in the blood test’s ability to accurately detect cancer.
“Over 49 million eligible people in the US remain unscreened for colorectal cancer. We are confident that a high-sensitivity blood test can play a critical role in improving screening adherence rates by offering an accurate and convenient blood test to those reluctant to get screened,” Talasz said in a statement.
Guardant Health plans to complete its premarket approval submission to the US Food and Drug Administration in the first quarter of 2023.
Contact Angela at angela@proactiveinvestors.com
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