Guardant Health (GH) FY Conference Transcript

Summary of Guardant Health (GH) FY Conference Call - August 13, 2025 Company Overview - Company: Guardant Health - Industry: Oncology diagnostics, specializing in liquid and tissue-based testing for cancer screening, therapy selection, and minimal residual disease (MRD) monitoring [2][3] Key Financial Highlights - Clinical Volumes: 30% year-over-year growth in oncology clinical volumes [3] - Overall Revenue: 31% year-over-year increase in total revenue [3] - Average Selling Price (ASP): Tissue ASP increased from approximately $1,700 to $2,000, three years ahead of schedule [4][5] - Gross Margin for Shield: Achieved a gross margin of 48% in Q2, with a target cost per test of around $200 to potentially increase margins above 60% [15][17] Product Performance - Tissue Testing: Introduction of RNA features in tissue tests, contributing to ASP improvements and reimbursement from Medicare [6][7] - Shield Product: Expected to generate over $50 million in revenue with approximately 70,000 tests for the year; strong market pull and adoption exceeding internal expectations [11][12] - Cost Reduction: Significant reduction in cost per test for Shield from over $1,000 to below $500, with ongoing efforts to further decrease costs [14][15] Market Dynamics - Colorectal Cancer (CRC) Screening: Approximately 50 million people in the U.S. are unscreened; Guardant Health aims to convert a significant portion of this population through convenient blood tests [37][38] - Market Share Potential: The blood-based CRC screening market is substantial, with a doubling of screening rates observed when Shield tests are included in screening options [38][39] Future Developments - Expansion Plans: Plans to hire 250 sales representatives for Shield, increasing from a previous target of 200, with a long-term goal of 600-700 reps [19][20] - Multi-Cancer Detection: Shield is expected to evolve into a multi-cancer detection test, expanding beyond CRC to at least 10 different cancer types [24][36] - Investor Day: Upcoming Investor Day in late September 2025, anticipated to reveal new financial targets and updates on product performance [57][62] Competitive Landscape - Market Position: Guardant Health is positioned as a leader in the liquid biopsy market, with competitors showing lower sensitivity in their tests compared to Shield [34][35] - Regulatory Engagement: Positive discussions with ACS stakeholders regarding guideline inclusion for Shield, expected by the end of the year [40][46] Additional Insights - AI Integration: Guardant Health is leveraging AI in its applications, with a large dataset to enhance diagnostic capabilities [55][56] - MRD Business Growth: The Reveal MRD test is experiencing rapid growth, with significant demand in breast cancer monitoring [47][50] This summary encapsulates the key points discussed during the conference call, highlighting Guardant Health's strong performance, market opportunities, and future growth strategies.