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GH.US
id: 516

Guardant Health Inc. (GH) Cancer Test Results Disappointment Case

On December 15, 2022, Guardant Health Inc. (GH) reported that its blood test for colorectal cancer performed worse than expected in a recent study.

On this news, Guardant's shares dropped over 27% and the Company lost more than $1.1 billion of its capitalization, seriously damaging investors.

Guardant Health went public in 2018 at $19 a share. It hit its all-time high at $179 in February 2021. And now it trades at $30 for a common stock.
  • In a press release, the Company said its test accurately found the presence of cancer 83% of the time. But the screening also delivered false positive results 10% of the time, and it was only to detect the presence of benign tumors that can turn cancerous 13% of the time.
  • Investors were expecting better results, Citigroup Inc. analyst Patrick Donnelly told Bloomberg. In particular, they were looking for Guardant's test to detect cancer at least 85% of the time and to more frequently identify possibly pre-cancerous tumors, he told Bloomberg.
  • The results indicate Guardant's test won't be an adequate substitute for colonoscopies or Cologuard, a screening that looks for signs of cancer in patients' stool, Jeffries analyst Brandon Couillard told Bloomberg.
Investors have reasons to suspect that the Company and Management did not properly inform shareholders about the prospect of its candidate and now it led to the dramatic depreciation of their shareholdings.
Alleged Offence
Misleading Statements
Failure to Disclose
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Shareholder
Investment Bank
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
15 December 2022
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Guardant Health Inc

Guardant Health, Inc., a precision oncology company, provides blood and tissue tests, data sets, and analytics in the United States and internationally. The company provides Guardant360; Guardant36...

    Ticker
    GH.US
    ISIN
    US40131M1099
    CIK
    1576280
    Sector
    Healthcare
    Industry
    Diagnostics & Research
    Country
    USA
    Address
    3100 Hanover Street, Palo Alto, CA, United States, 94304