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Tempus AI Boosts R&D Efforts Through Wide-Ranging Product Launches

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Key Takeaways

  • TEM launched xM liquid biopsy to monitor ICI therapy response in solid tumors.
  • Tempus AI introduced Loop, an AI platform combining RWD and CRISPR screens.
  • Development of xH signals TEM's move into WGS to guide hematologic cancer treatment choice.

Tempus AI (TEM - Free Report) continues to push the boundaries of precision medicine through a robust pipeline of research and development (R&D) initiatives. In June, the company introduced xM, a liquid biopsy assay to detect molecular response to immune-checkpoint inhibitor therapy in advanced solid tumors. It is currently available for research use only, with clinical availability expected later this year. In May, TEM launched its Fuses program to generate valuable insights for both patient care and research. Fuses will accelerate the company’s comprehensive testing portfolio, expanding its suite of AI-enabled diagnostics. In April, Tempus AI announced Tempus Loop, a new oncology-focused platform for target discovery and validation. Loop is its proprietary approach to novel target identification that integrates real-world patient data (RWD) with human-derived biological models and CRISPR screens, all leveraging AI to rapidly uncover insights for preclinical therapeutic development.

In January, Tempus AI launched olivia, an AI-enabled personal health concierge app designed to empower patients by bringing their health-related data into one central location and leveraging advanced AI to provide actionable insights. The company also launched an FDA-approved, next-generation sequencing (NGS)-based in vitro diagnostic device, xT CDx. xT CDx is a 648-gene NGS test for solid tumor profiling, which includes microsatellite instability status and companion diagnostic claims for colorectal cancer patients.

In terms of product in the pipeline, Tempus AI is developing its first whole-genome sequencing test, xH. This test marks the company’s first foray into adopting whole-genome sequencing (WGS) as a platform, supporting clinicians with the detection of all clinically relevant variants and advancing the landscape of personalized therapy, specifically in hematological oncology.

Tempus AI’s Peers Making Significant Strides With Product Innovation

Veracyte (VCYT - Free Report) significantly advanced its product pipeline, positioning itself as a strong player in the precision diagnostics and AI-driven testing space. The company launched its Decipher Prostate metastatic test in a limited capacity in April, with a full rollout planned for June. This launch expands Decipher’s reach to the entire spectrum of prostate cancer, providing actionable insights for metastatic patients to guide treatment decisions and avoid unnecessary chemotherapy. Additionally, Veracyte plans to launch an updated version of its Afirma test in summer 2025, incorporating its v2 transcriptome. It also aims to launch the Prosigna lab-developed test for breast cancer in the United States in 2026. Finally, Veracyte is progressing toward the launch of its Percepta Nasal Swab test for lung cancer risk assessment.

Myriad Genetics (MYGN - Free Report) invests in the development of new innovative testing products and enhances its existing portfolio of testing products. Last year, it launched the new Prequel Prenatal Screen, which delivers critical insights at eight weeks of gestational age as compared to 10 or 12 weeks. Myriad Genetics introduced the Foresight Carrier Screening test with a new Universal Plus Panel featuring an expanded panel of genes and more efficient workflows. Additionally, Myriad Genetics announced early access to the FirstGene — a combined carrier screening and noninvasive prenatal testing assay — and its first AI-enabled Prolaris test to support clinical divisions at the time of biopsy in partnership with OMIC.

TEM’s Price Performance & Expensive Valuation

In the past year, Tempus AI shares have surged 83.6%, outperforming the industry’s 38% growth and the S&P 500 composite’s 12.3% improvement.

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TEM currently trades at a forward 12-month Price-to-Sales (P/S) of 7.50X compared with the industry average of 5.88X.

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TEM Stock Estimate Trend

Earnings estimates for Tempus AI in 2025 and 2026 are showing a mixed picture.

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Image Source: Zacks Investment Research

TEM’s Zacks Rank

TEM stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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