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Tempus AI Taps Growing ICI Market With New xM Assay

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Key Takeaways

  • TEM debuts xM for TRM, a liquid biopsy assay to monitor response to ICI therapy in solid tumors.
  • Tempus AI's xM uses ctDNA and a multi-parametric algorithm to assess molecular response in cancer patients.
  • TEM expands its precision oncology tools as demand for ICI therapies rises in advanced cancers.

Tempus AI, Inc. (TEM - Free Report) recently introduced xM for treatment response monitoring (TRM), a liquid biopsy assay. It is designed to detect molecular response to immune-checkpoint inhibitor (ICI) therapy in advanced solid tumors. xM for TRM is the newest addition to Tempus AI’s growing portfolio of sensitive assays for monitoring molecular response and minimal residual disease (MRD). This innovative offering marks a significant advancement in the precision oncology space, where real-time response monitoring is essential for optimizing cancer treatment.

The rising prevalence of cancers such as lung, breast, bladder, and cervical cancers, as well as melanomas and hodgkin lymphoma, has driven the adoption of immune checkpoint inhibitor therapies as a key component of modern cancer treatment. Per a Grand View Research analysis, the global immune checkpoint inhibitors market size is projected to reach $154.25 billion by 2030, at a compound annual growth rate (CAGR) of 17.9% from 2024 to 2030.

xM for TRM is designed to quantify changes in circulating tumor DNA (ctDNA) longitudinally from a blood sample, enabling early molecular response assessment in patients with advanced cancers receiving ICI alone or combination therapies. xM for TRM leverages a unique multi-parametric algorithm, integrating copy number variations (CNVs), along with somatic and germline variant allele frequencies (“VAFs”), for a comprehensive and robust estimation of circulating tumor fraction.

Recent Development by TEM’s Competitors

In March, Exact Sciences (EXAS - Free Report) launched the Cologuard Plus test, the company’s next-generation colon cancer screening test. The Cologuard Plus test detects cancers and precancerous polyps with even greater sensitivity than the Cologuard test while reducing false positives by nearly 40%. In April, it launched the Oncodetect test, its molecular residual disease and recurrence monitoring test. Furthermore, the company is on track for the launch of Cancerguard EX, a laboratory-developed multi-cancer screening test, in the second half of 2025.

Guardant Health (GH - Free Report) has enhanced its Guardant360 Liquid test by launching nearly a dozen new applications built on its Guardant Infinity multiomic platform and AI engine. Comprehensive biomarker testing through immunohistochemistry (using tumor tissue) has been the standard of care in oncology. The Guardant360 Liquid test now offers access to this extensive molecular profiling information through the blood by looking at the unique methylation signatures of specific tumor biomarkers. The company also announced the addition of a full suite of immunohistochemistry (IHC) testing to its portfolio of tumor molecular profiling tests. This new set of tests will help oncologists identify tumor subtypes and match cancer patients to the most effective targeted therapies.

TEM Stock Outperforms Industry & Benchmark

Year to date, Tempus AI shares have surged 91%, outperforming the industry’s 24.1% growth and the S&P 500 composite’s 8.2% improvement.

 

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Expensive Valuation

TEM currently trades at a forward 12-month Price-to-Sales (P/S) of 7.84X compared to the industry average of 5.90X.

 

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TEM Stock Estimate Trend

In the past 30 days, Tempus AI's projected loss per share has improved 2.8% for 2025 and 12% for 2026.

 

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TEM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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