UPDATE-2 8/17…Small cap biotechs from our trading list are on fire plus healthcare stocks are having a great week with the XLV up 4.65% and the IBB up 5.09%! Our next update is coming on Monday.
Update-1 8/12 10:34a EDT— Small cap biotechs are rallying with strong momentum ; Update at 3P. ARKG and XBI are up above 1%. Looking for green screen day!:
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Here is our previous post on small cap biotechs and MOLECULAR DIAGNOSTICS on JULY 7:
“Innovation has impacted cancer diagnosis and therapy and data was presented at ASCO are three advanced molecular diagnostic companies utilizing DNA analysis and AI : Adaptive Biotechnologies (ADPT) up 96.83% YTD for MRD assessment I Lymphoid cancers. Guardant Health (GH)up 66% YTD presenting ctDNA data (“liquid biopsy”) for colon cancer, and Natera (NTRA) don 2.19% YTD, with their SIgnatera cell free DNA assays across 10 different cancer types. We spotted this MRD trend in 2024 and these stocks have been huge winners for us particularly ADPT and GH.”
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8/12…later after 12N EDT:
Momentum rally in our small caps trading list and picks:
Next-GEN Oncology diagnostic stocks are all up %: ADPT 4.24, GH 0.87, PSNL 2.46, NTRA 2.65.
OTHER favorites up: CRMD 14.31% ( after a down day because of acquisition );COGT 5.49%, SUPN 2.06%.
Two so called AI biotech plays: CAI up 8% ,TEM up 9%.
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Precision Medicine Stocks for Oncology
- Biotech Momentum: best plays are in small cap growth- Diagnostics and Pharma.
- Precision oncology is an emerging niche market enabled by genomics and AI.
- We have outlined four high growth companies in oncology diagnostics with MRDs and Liquid Biopsy platforms.
Next Generation Molecular Diagnostics:-liquid biopsy, MRDs. All of these stocks have been big winners on our trading list since early 2024, except Personalis which was added last week. All of our previous picks have reiterated growth for 2025, so the market potential or TAM for early detection of cancer looks strong so the question is competition and M&A pontential longer term. All of the picks have positive analyst ratings.
Adaptive Biotechnologies (ADPT): P $12,20, up !09% YTD, MCAP 1.86B, PCASH 9.39. Achieved 42% revenue growth to $48.9M for Q2 in MRD immune medicine high sensitivity diagnostics. Full year guidance to $190-200M.
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The MRD business achieved profitability in the second quarter of 2025 with Adjusted EBITDA of $1.9 million.
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clonoSEQ test volume in the second quarter of 2025 grew 37% to 25,321 tests delivered versus the second quarter of 2024.
Guardant Health (GH): P $54.23 up 77.51% YTD. MCAP $6.76B, Pcash 10.79, Achieved 31% revenue growth to $231M in Q2. Raised guidance to $915-925M an increase of 24-26%.i
- Introduced 11 groundbreaking Smart Liquid Biopsy applications for Guardant360 Liquid that greatly expands the differentiated clinical utility for therapy selection.
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Expanded Oncology offerings with launches of Guardant Hereditary Cancer Testing and a suite of immunohistochemistry tests.
Natera (NTRA): P $151.95, down 4.05% YTD.MCAP $20.65B, PCASH 20.42. Generated revenues of $546.6M for Q2 an increase of 32.2%. Raised outlook for 2025 by $80M to $2.02-2.10B.
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Performed approximately 188,800 oncology tests in the second quarter of 2025, compared to approximately 125,400 in the second quarter of 2024, an increase of 50.6%; this included record sequential growth of approximately 20,000 Signatera clinical units compared to the first quarter of 2025.
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Achieved positive cash flow of approximately $24.3 million1 in the second quarter of 2025.
Personalis (PSNL) P $4.51. MCAP $399M, PCASH 2.31. Revenue for Q2 was $17.2 M compared to previous year Q $22.6 a decline of 24%.beacause of ad decline in sales to Natera and this sock was a new pick last week at about $5.
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Population sequencing of $3.3 million for the second quarter of 2025 compared with $1.3 million, an increase of 158%
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Cash, cash equivalents, and short-term investments of $173.2 million as of June 30, 2025; cash usage of $13.2 million from operations and capital equipment additions in the second quarter of 2025
- The company has strategic collaboration with Tempus AI to bring AI powered ultra-sensitive cancer recurrence testing to colorectal cancer patients.
A number of molecular diagnostic companies have seen competition from these companies e.g. Eaact Sciences (EXAS),Vericyte (VCYT).
Disclosure: long in order of portfolio weighing: ADPT, GH, PSNL, NTRA.