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Why Is Natera Stock up 100% This Year?

Earlier this year, we told Nanalyze readers why we were dumping shares of Grail (GRAL) stock, which we were “gifted” when Illumina grudgingly spun its former subsidiary off after regulators voided the acquisition of the liquid biopsy company. Putting aside management’s string of bad decisions that had us reevaluating our bullish perspectives for Illumina, there are a couple of reasons we resolved to opt out of our position in Grail, which has developed the first multi-cancer blood test. 

For one thing, we are already holding Guardant Health (GH), which is clearly a market leader in the liquid biopsy business compared to Grail based on total revenue – $564 million compared to just $93 million last year. GH recently scored a big win at the end of July when the FDA approved the company’s Shield blood test for colorectal cancer (CRC) as a primary non-invasive screening option in adults age 45 and older. This cracks open a huge potential market for Guardant: The U.S. spent about $43 billion on five cancers for which there is medically recommended screening including colorectal cancer. Colonoscopies are the gold standard for CRC screening and account for 55% of the total bill – or about $24 billion. Shield offers access to that lucrative market.

Colorectal cancer screening market potential
CRC screening is among the biggest cancer

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