According to a recent report, the global Precision Medicine Market is set to grow beyond $112 billion by 2027. Precision medicine helps doctors detect the onset of health aliments at their earliest stages. The growth in the market is expected to be driven by significant advancements in cancer biology, the availability of large-scale human genome databases, and the development of computational tools. Advanced genetic technologies examine the effects of genetic changes that are responsible for cancer and these tools are being used to study DNA repair and damage, changes related to cancer, and gene regulation in cancer cells that is boosting the growth of the industry. Redwood City-based Guardant (NASDAQ: GH) is a leading provider of precision oncology solutions that recently reported its second-quarter results.

Guardant’s Financials

Guardant’s Q2 revenues grew 39% over the year to $92.1 million, ahead of the Street’s forecast by 8.8%. On an adjusted basis, it reported a loss of $0.96 per share, falling below the Street’s estimates of a loss of $0.87 cents per share.

By segment, revenues from Precision oncology grew 42% to $72.6 million, and revenues from development services grew 27% to $19.5 million.

Among key metrics, tests to clinical customers grew 52% to 20,830, and tests to biopharmaceutical customers grew 30% to 3,653 during the quarter.

Guardant did not provide any outlook. The market is looking for revenues of $96.6 million for the quarter with a loss of $0.88 per share and revenues of $365.98 million for the year with a loss of $3.74 per share.

Guardant’s Expanding Product Line

During the quarter, Guardant released several new products and product upgrades. Guardant360 TissueNext and Guardant360 Response were released to expand the end-to-end testing solutions for oncologists. TissueNext supplements its blood first approach and provides an integrated solution for oncologists to use liquid first ahead of tissue, ensuring patients receive guideline complete testing with the fastest turnaround time. An oncologist will be able to order the Guardant360 liquid biopsy test, and if there is no biomarker detected, they can reflex the tissue with TissueNext that has a significantly higher biomarker detection rate than tissue alone.

The early response to TissueNext has been positive. Guardant believes that this offering will help transition those who continue to rely solely on tissue testing to move toward the blood first testing paradigm.

The second key product, Guardant360 Response, is the first commercially available blood-only liquid biopsy test that detects changes in DNA levels to provide oncologists an early indication of a patient’s response to treatment such as target or immunotherapies. Guardant does not expect either product to be a significant revenue contributor in the near term.

Within BioPharma, Guardant recently announced two new companion diagnostic approvals with Janssen and Amgen, both for use in advanced non-small-cell lung cancer. The FDA approved the Guardant360 CDx test as the first and only liquid biopsy companion diagnostic for comprehensive genomic profiling to identify patients with locally advanced or metastatic non-small cell lung cancer.

Guardant’s stock is currently trading at $105.03 with a market capitalization of $10.6 billion. It hit a 52-week high of $181.07 in February and a 52-week low of $79.21 in August last year.