What Happened?
Shares of genetic testing company Natera (NASDAQ: NTRA). jumped 7.2% in the afternoon session after the company announced promising results from its phase 3 IMvigor011 clinical trial for its Signatera test.
The study focused on patients with muscle-invasive bladder cancer. The findings showed that using the Signatera test to guide treatment with the drug atezolizumab led to better outcomes. Patients who tested positive for residual disease with Signatera and received the drug saw their median disease-free survival more than double to 9.9 months, compared to 4.8 months for those on a placebo. Furthermore, these patients experienced a meaningful improvement in overall survival, with a median of 32.8 months versus 21.1 months for the placebo group. These positive results were expected to bolster Natera's application to the FDA for Signatera as a companion diagnostic tool, potentially strengthening its position in the market.
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What Is The Market Telling Us
Natera’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 26 days ago when the stock dropped 4.5% on the news that Wells Fargo & Company initiated coverage on the stock with a neutral "equal weight" rating and set a price target of $175.00. The new coverage highlighted the company's recent earnings report, which missed analyst estimates for earnings per share by $0.14, though revenue did beat expectations. In other news, it was reported that Natera settled a patent dispute with Laboratory Corp. of America Holdings concerning cancer-detection technology. The two companies reached a settlement mid-trial, and while the specific terms were not made public, the agreement resolved the ongoing litigation.
Natera is up 20.7% since the beginning of the year, and at $193.88 per share, has set a new 52-week high. Investors who bought $1,000 worth of Natera’s shares 5 years ago would now be looking at an investment worth $2,755.
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