Tempus to buy cancer test maker Personalis for $1.5 billion
TEM•What Tempus gets from the deal
Tempus will gain access to Personalis' NeXT Personal cancer test, which uses MRD, or minimal residual disease, technology to detect tiny traces of cancer that may remain after surgery, chemotherapy or other treatment and can be too small to appear on scans.
The test creates a personalized genetic signature of a patient's cancer, which doctors can track over time through blood tests to monitor for remaining or returning disease.
Tempus agrees to acquire Personalis
Tempus AI said on Monday it would buy Personalis in a deal valued at about $1.5 billion, adding a cancer test to the AI-enabled precision medicine firm's oncology portfolio.
Personalis shareholders will receive $16.25 per share, mostly in Tempus stock — a 5.6% premium to the last close of the cancer test maker's shares. Tempus has the option to pay up to 50% of the deal value in cash.
Shares fall on stock-based structure
Personalis shares fell 12% in morning trading, while Tempus dropped nearly 9%.
The share prices fell due to the deal's stock-based structure, Guggenheim analyst Subbu Nambi said, adding that Personalis investors remain skeptical about Tempus' potential upside.
