Tempus AI Outlines Growth Strategy Fueled by Pricing Increases and Data Licensing Expansion
Eric Lefkofsky, CEO of Tempus AI (NASDAQ:TEM), highlighted the company's strong second-quarter performance driven by durable demand for genomic profiling and growth in its data-licensing business. The diagnostics segment remains Tempus' largest revenue source, with solid-tumor testing and liquid biopsy services seeing increased average selling prices due to recent FDA approvals that could transition these tests into higher-revenue Advanced Diagnostic Laboratory Test (ADLT) pricing. The company's data licensing division grew by approximately 36% in the latest quarter, adding around $200 million in contract value. Tempus anticipates annual oncology-data growth of about 30%, supported by a repository covering roughly 50 million patients. The planned acquisition of Personalis is expected to enhance its molecular residual disease testing and reimbursement capabilities. Additionally, potential involvement with Merck (MRK) and Moderna's personalized melanoma vaccine rollout could generate additional sequencing revenue for Tempus.
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Topics: acquisition plans data licensing FDA approvals genomic profiling