Tempus AI Sees Pricing, Data Growth Fueling Long-Term Expansion
Article excerpt
Tempus AI TEM Founder and CEO Eric Lefkofsky said the company’s second-quarter performance was supported by continued demand for comprehensive genomic profiling and growth in its data-licensing business. Speaking at Morgan Stanley’s Global Healthcare Conference, Lefkofsky said the diagnostics business, particularly solid-tumor profiling and liquid biopsy testing used for therapy selection, remained the company’s largest business line. He said demand has been durable while average selling prices have increased. Tempus’ data-licensing business also continued to expand, according to Lefkofsky. He said the business grew about 36% in the most recent quarter and recorded roughly $200 million in total contract value additions. Lefkofsky attributed demand in part to biopharmaceutical companies’ increasing investments in artificial intelligence and related computing infrastructure. Growth outlook tied to diagnostics pricing and data demand Lefkofsky reiterated Tempus’ expectation for at least 25% growth over the next several years, saying the company was designed to pursue sustained long-term growth rather than a shorter period of faster expansion. In diagnostics, he highlighted expected pricing changes for Tempus’ core oncology assays. The company’s solid-tumor test received FDA approval for both tumor-normal and tumor-only testing, which Lefkofsky said will allow the platform to...
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Tempus’ planned acquisition of Personalis is centered on what Lefkofsky described as a best-in-class, whole-genome-based MRD assay with strong sensitivity and specificity.
