Tempus AI stock pared back a massive gain Monday after the Food and Drug Administration cleared its new device to help drugmakers analyze RNA.
RNA analysis is helpful in determining the mechanisms of diseases and finding molecular pathways to target specific conditions. Tempus AI says its new device will be especially helpful in discovering new ways of treating cancer.
"We have long known that RNA sequencing offers additional insights beyond DNA alone, but only now are we beginning to unlock is full value in supporting therapeutic development," Tempus AI Chief Scientific Officer Kate Sasser said in a written statement. "This FDA clearance further demonstrates the promise of RNA sequencing and opens up new opportunities for us with our biopharma customers."
On the stock market today, Tempus AI stock closed down 2.7% at 85.87, after earlier running up as much as 11% to a record intraday high at 97.79. Shares briefly topped a profit-taking zone after breaking out of a cup base with buy point at 74.83 on Aug. 15.
Tempus AI stock ranks No. 33 on the IBD 50 list of elite growth stocks.
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The company says the FDA's clearance solidifies Tempus AI "as a one-stop-shot for precision medicine solutions."
"Now, our life science partners can leverage our RNA assay to more precisely identify which patients are most likely to respond to specific therapies and to design more efficient clinical trials," Sasser said. "As new therapeutics tied to RNA biomarkers enter the market, we believe that this assay will become even more critical for personalized treatments for patients with cancer."
Tempus AI stock has a strong IBD Digital Relative Strength Rating of 94, putting its performance over the past 12 months in the leading 6% of all stocks.
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