Tempus AI has agreed to buy Personalis, a maker of molecular residual disease tests for cancer, for $1.5 billion. This acquisition will help Tempus better support patients in cancer diagnostics, treatment selection, recurrence, and monitoring.
Recent interest in blood-based cancer tests across the medtech industry has led companies like Abbott and Guardant to make significant investments in the field.
Background on Personalis
Personalis, based in Fremont, California, makes a molecular residual disease test for cancer. The company’s test uses information from a patient’s tumor sample to screen for residual disease.
Tempus plans to buy Personalis’ outstanding shares at $16.25 per share, a roughly 6% premium to the company’s Friday closing price.
The companies expect the purchase to close in late 2026 or early 2027, subject to shareholder and regulatory approvals.
Partnership and Investment
Tempus and Personalis have a partnership dating back to 2023, when Tempus agreed to co-commercialize Personalis’ molecular residual disease test.
Since then, Personalis has started to garner broad insurance coverage for its test, including Medicare coverage in three indications.
Tempus CEO Eric Lefkofsky said that Personalis’ test will complement Tempus’ own MRD offerings, which include a tumor-naive MRD test.
Lefkofsky noted that the market has shifted pretty dramatically to tumor-informed assays in terms of volume.
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Personalis reported preliminary second-quarter revenue of $22.4 million, with 10,384 tests delivered in the quarter, a 33% increase from the previous quarter.
Tempus sold about 5,500 of Personalis’ tests in the first quarter and about 9,000 in the second quarter.
As the deal is expected to close, it’s likely that the acquisition will have a significant impact on patients who rely on these tests, as it may lead to more accurate cancer diagnostics and treatment options, ultimately affecting their care and cancer treatment plans.
The acquisition is subject to shareholder and regulatory approvals.
Tempus’ investment in Personalis will further establish the company as a leader in the field of cancer diagnostics and treatment.
Future Outlook
With the acquisition, Tempus is poised to expand its offerings in the cancer diagnostics market.
The company’s plans to invest in its tumor-naive tests, while also offering Personalis’ tumor-informed MRD test, will likely provide patients and healthcare providers with more options for cancer screening and treatment.
As the market continues to shift towards tumor-informed assays, Tempus’ acquisition of Personalis is a strategic move to stay ahead in the industry.
Eric Lefkofsky has stated that Tempus still plans to invest in its tumor-naive tests, indicating a commitment to providing a range of options for cancer diagnostics and treatment.