COMPANY PROFILE:
Founded In – 2011 | Current Market-Cap – USD 4.16B
Guardant Health, Inc., a precision oncology company,
provides non-invasive cancer diagnostics. It offers liquid biopsy tests for
advanced stage cancer, such as Guardant360, a molecular diagnostic test that
measures various cancer-related genes from circulating tumor DNA (ctDNA); and
GuardantOMNI, a broader panel measuring various genes from ctDNA. The company
also provides LUNAR-1 for recurrence detection in cancer survivors; and LUNAR-2
for early detection of cancer in higher risk individuals. Guardant Health
headquartered in Redwood City, California.
Stock performance since IPO:
IPO Date
|
04-Oct-2018
|
IPO Range
|
$15 - $17
|
IPO Debut Price
|
$27.75
|
High Made (07-Dec-2018)
|
49.53
|
Guardant Health seems
to be a good Long-Term Investment Stock for following reasons:
·
Incorporated in Delaware in 2011, Guardant
Health Inc. is a precision oncology company focused on advanced analytics of
molecular information throughout all stages of the disease. With two biopsy
tests, Guardant360 and GuardantOMNI, and two programs assessing recurrence and
early detection, LUNAR-1 and LUNAR-2, Guardant seems to be offering very
innovative solutions. Keep in mind that Guardant360, for instance, has been
used by more than 5,000 doctors in over 40 biopharmaceutical companies.
·
Guardant Health had a staggeringly impressive
IPO that saw shares trade upwards of almost 70 percent on its first day. The
market is still reeling after Guardant Health’s (NASDAQ:GH) roaring IPO took
everyone by surprise, with shares of the cancer-detecting company soaring
upwards by nearly 70 percent during its first day of trading. The company’s
blockbuster market debut was one of the largest on the market thus far this
year, wowing proponents and critics alike with its unexpected success. The
California-based company still has a stormy market to navigate soon, however,
and will need to prove to investors that it’s worth the pretty pennies it
earned during its market debut.
·
Those keeping an eye on the market instantly
noticed Guardant Health when the company made its debut, no doubt because it
immediately started soaring upwards at a breakneck pace. Though Guardant Health
originally intended to offer investors some 12.5 million shares at a
respectable $19 per share, it quickly saw trading skyrocketing, closing at a
whopping $32.20 per share. This rapid climb of almost 70 percent will
doubtlessly put some wind in the company’s sails as it plunges into the open
market for the first time.
·
Guardant Health has only been public for a few
weeks, but it is quickly attracting attention from Wall Street. The company has
received several "strong buy" ratings from analysts. In response, its
stock price is up by more than a third from the date of its IPO.
·
According to S-1 filings made with the SEC, the
company’s focus on precision oncology is what its executives believe will keep
it afloat in the market for years to come. Virtually all the capital it gleaned
from its market debut will be put forward towards further testing, marketing,
and administrative purposes, the company’s prospectus notes. Guardant isn’t
afraid to acquire other companies in the future, either, and could use some of
the extra cash it gleaned from its particularly vibrant IPO to scoop up any
competitors before they become a major threat.
·
The company’s expertise in the liquid biopsies
sector could prove to be an engine that propels its growth for some time. After
all, the market is currently in a liquid biopsies frenzy, with enthusiasm about
this exciting way to detect cancer earlier rapidly growing around the world.
Given that so many of the world’s wealthiest countries have aging populations
particularly vulnerable to diseases like cancer, it’s more than safe to say the
company won’t want for demand for its products anytime soon, either.
·
After its blockbuster IPO, Guardant Health
likely won’t need to worry about financial matters for some time. Even its
market debut was a small blip on its radar when it comes to accruing cash,
however. Guardant has already raised at least $550 million thus far, illustrating
that the company’s innovative approach to cancer treatments is clearly piquing
the interest of some major investors in its sector. Many aspiring health
ventures like Guardant’s struggle due to a lack of capital, making it a sizable
safer bet than many in the eyes of some investors.
·
Guardant certainly expects to be reaping in the
cash soon, too. According to the company’s prospectus, for instance, it’s
projecting that “the market opportunity for our current commercial and pipeline
products is over $35 billion in the U.S,” and this figure will likely continue
to inflate. Given that Guardant Health’s impressive Guardant360 solution option
is substantially cheaper than many leading alternatives, too, it will likely be
able to price out many competitors while building a positive reputation for
itself in the market.
·
Market watchers are excited about Guardant
because it has established itself as a leader in the up-and-coming field of
precision medicine . The company's Guardant360 technology can diagnose dozens
of different types of cancers from a simple blood test. That's a highly
appealing prospect considering that traditional diagnostic methods require
tissue biopsies (which are more expensive and often require surgery). Guardant
Health says its tests have a market opportunity of $35bn. investors are excited
about liquid biopsy technology is something of an understatement judging by the
69% increase in Guardant Health’s share price on its first day trading on
Nasdaq.
·
Recent results show that demand for Guardant's
services are taking off. The company's revenue jumped 95% last quarter to $21.7
million. Better yet, the increased volume caused the company's gross margin to
more than double to 53.7%. With lots of white space in front of this business,
investors have plenty of reasons to believe that its days of hypergrowth are
just getting started.
·
Guardant health expects its full-year 2018
revenue to land between $82 million and $84 million. Those are tiny numbers
compared with the company's current market cap of $3.8 billion, so Wall Street
is pricing this business for exceptionally strong growth. That fact will likely
amp up the stock's volatility for the foreseeable future.
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