Insurance will cover the oncological test of Guardant Health
Biotech company Guardant Health Inc. (GH) has announced insurance will cover that one of its tests. The news supported the company’s quotes, which were worth $60.29 at the auction on March 11.
Earlier this week, Guardant Health announced that its Guardant360 TissueNext test for cancer detection will in the number of diagnostic tests that are covered by at least one Medicare insurance provider.
The peculiarity of the Guardant360 TissueNext test from Guardant Health is that it allows even patients with severe forms of cancer to diagnose the condition.
Because of such testing, doctors will better choose the treatment for a particular patient and increase the effectiveness of therapy. According to the information provided by Guardant Health, Palmetto GBA insurance company, which is a partner of the federal medical program Medicare, will reimburse the costs of testing Guardant360 TissueNext.
Palmetto is not a nationwide supplier, but operates only in a few states in the southern United States, so you should not expect a significant increase in sales in the short term. However, inclusion even in such a program is a good omen for Guardant Health.
That in the last reporting quarter, Guardant Health’s revenue increased by 38% year-on-year, which was higher than analysts’ expectations. Sales growth in 2022 may amount to 23-26%. Guardant Health performs tests to determine oncological diseases using liquid biopsy (mainly from blood samples). This method of investigation is not invasive, simpler and safer for the patient, but it has high accuracy (the minimum number of false-positive results).
The total targeted market for Guardant Health solutions is about $35 billion, and the company is the leader in this market. A positive factor is the stable financial position of the company: the stock of cash and short-term investments currently amount to more than $1 billion.
