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Tempus AI Stock Falls Despite Collaboration Announcement With Genialis
TEMTempus Ai,Inc.(TEM) ZACKS·2025-01-09 15:01

Collaboration Between Tempus and Genialis - Tempus AI Inc (TEM) announced a multi-year collaboration with Genialis to leverage Tempus' multimodal dataset for developing RNA-based algorithms across cancer types [1] - The partnership combines Tempus' expertise in clinical and molecular data with Genialis' AI-driven analytics to improve diagnostics and personalized treatments in precision medicine [2] - The collaboration enhances Tempus' offerings in precision medicine through AI-driven RNA biomarker development, potentially attracting more partnerships and increasing revenue potential [3] Impact on TEM Stock and Financials - Following the announcement, TEM shares declined 3.5% to close at 37.49,witha6.937.49, with a 6.9% loss over the past year compared to the industry's 10.5% decline [2] - TEM currently has a market capitalization of 6.12 billion, with Zacks Consensus Estimate projecting fiscal 2024 revenues of 698.5million,indicating117.8698.5 million, indicating 117.8% growth from fiscal 2023 [4] Genialis' AI-Powered Model and Clinical Algorithms - Genialis developed an AI-powered model using data from around 1 million RNA-sequencing samples to generate precise biomarker algorithms for improving drug development [5][6] - The collaboration allows Genialis to use Tempus' de-identified patient data to validate biomarkers, speeding up the development of clinical algorithms [7] - Tempus' multimodal dataset played a key role in developing Genialis krasID, the first commercially available algorithm for identifying cancer patients who benefit from KRAS inhibition [8] Industry Prospects for AI in Healthcare - The global AI in healthcare market was estimated at 19.27 billion in 2023 and is expected to grow at a CAGR of 38.5% from 2024 to 2030 [9] - The adoption of digital technologies in healthcare is driven by the need to reduce costs and enhance patient-care services, boosting the growth of AI in the healthcare market [10] TEM's Zacks Rank and Peer Comparison - TEM carries a Zacks Rank 2 (Buy) at present [11] - Masimo (MASI) has an estimated growth rate of 11.8% for 2025, with shares rising 31.7% against the industry's 1% decline in the past six months [11][12] - Accuray (ARAY) has an estimated growth rate of 1200% for 2025, with shares gaining 8.8% against the industry's 1% decline in the past six months [12][13] - Abbott Laboratories (ABT) has an estimated earnings growth rate of 10% for 2025, with shares rising 8.5% in the past six months compared to the industry's 7.2% growth [13]