Back to top

Image: Bigstock

Tempus AI Fuels Growth Through Strategic Biotech Collaborations

Read MoreHide Full Article

Key Takeaways

  • Tempus AI forms new biotech partnerships to drive inorganic growth and align with its financial strategy.
  • TEM's collaboration with Whitehawk Therapeutics enhances ADC cancer treatment research using AI insights.
  • Tempus AI partners with Northwestern and Verastem to apply AI in Alzheimer's and oncology diagnostics.

Tempus AI Inc. (TEM - Free Report) maintains a solid pipeline of collaborations that align with its financial strategy and are expected to enhance its inorganic growth. Recently, Tempus has entered a multi-year partnership with Whitehawk Therapeutics, Inc. (WHWK - Free Report) , an oncology therapeutics company focused on developing improved antibody-drug conjugate (ADC) cancer treatments using advanced technologies rooted in established tumor biology. This collaboration comes amid robust growth in the global ADC market.

According to MarketsandMarkets, the market, valued at $7.6 million in 2022 and $9.7 million in 2023, is projected to witness a strong CAGR of 15.2% from 2025 to 2028. Through this collaboration, Tempus aims to help biotech partners derive actionable insights from its AI platform, enabling smarter and faster decision-making across the drug development process.

Additionally, Tempus entered into a collaboration with The Abrams Research Center on Neurogenomics at Northwestern University Feinberg School of Medicine. This multi-year collaboration aims at harnessing AI for rapid discovery and innovation in Alzheimer’s disease research. The collaboration leverages Tempus’ AI-powered data analytics platform, Lens, to analyze and restructure the center’s repository of genomic data. 

In May, Tempus entered into a collaboration to develop a companion diagnostic (CDx) test with Verastem Oncology, a biopharmaceutical company committed to advancing new medicines for patients with RAS/MAPK pathway-driven cancers. The collaboration is aimed at developing CDx for first-ever FDA-approved KRAS-mutant recurrent low-grade serous ovarian cancer combination treatment. Tempus’ FDA-approved xT CDx assay is being leveraged as an investigational assay in Verastem’s global Phase 3 RAMP-301 clinical trial. 

Partnerships by TEM’s Peers in the Oncology Field 

Recently, Guardant Health, Inc. (GH - Free Report) and Quest Diagnostics (DGX - Free Report) have announced a strategic multi-year collaboration to make Guardant’s FDA-approved Shield blood test for colorectal cancer screening available through Quest’s nationwide network starting in first-quarter 2026. 

Shield is the first FDA-approved blood test for colorectal cancer screening in average-risk adults aged 45 and older. Shield offers a simple blood-draw alternative to colonoscopy and stool tests and is covered by Medicare and the VA Community Care Network. Currently, one-third of eligible U.S. adults skip screening despite colorectal cancer being the second leading cause of cancer deaths. The collaboration aims to boost early cancer detection and improve screening rates. 

TEM Stock Outperforms Industry & Benchmark

In the past year, Tempus AI shares have rallied 90.2%, outperforming the industry’s 27.4% growth and the S&P 500 composite’s 16.6% improvement.

Zacks Investment Research

Image Source: Zacks Investment Research

Expensive Valuation

TEM currently trades at a forward 12-month Price-to-Sales (P/S) of 10.52X compared with the industry average of 5.90X.

Zacks Investment Research

Image Source: Zacks Investment Research

TEM Stock Estimate Trend

In the past 30 days, Tempus AI's loss per share estimate for 2025 has remained unchanged. 

Zacks Investment Research

Image Source: Zacks Investment Research

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.

Published in