Natera Stock Climbs on Positive Colorectal Cancer Trial Data
Study shows Natera's Signatera test, combined with therapy, significantly extends disease-free survival, boosting prospects for broader clinical adoption.
Shares of Natera Inc. (NTRA) advanced on Tuesday after the diagnostics company presented compelling new data for its flagship cancer test, Signatera, reinforcing its utility in treating colorectal cancer (CRC).
The Austin-based company’s stock rose 3.75% to close at $237.42, trading near its 52-week high. The gains came after Natera announced that its ALTAIR clinical trial met its primary endpoint, demonstrating a significant benefit for patients whose cancer was detected by Signatera.
According to the company's announcement at the American Society of Clinical Oncology Gastrointestinal Cancers Symposium (ASCO GI), the data showed a statistically significant improvement in disease-free survival (DFS). In the study, Signatera-positive CRC patients treated with a combination of Trifluridine and Tipiracil saw a median DFS of 9.23 months, compared to just 5.55 months for those who received a placebo. The results carried a hazard ratio of 0.75 and a p-value of 0.0406, indicating a high degree of statistical significance.
This outcome provides crucial validation for Natera’s core product, Signatera, a highly sensitive molecular residual disease (MRD) test. The test works by detecting minute amounts of circulating tumor DNA (ctDNA) in a patient's blood, allowing oncologists to identify cancer recurrence much earlier than traditional imaging methods and tailor treatment accordingly. The ALTAIR trial results suggest that using Signatera to guide intervention can lead to materially better patient outcomes.
The positive data reinforces Natera's position as a leader in the rapidly growing field of personalized oncology and liquid biopsies. With a market capitalization now exceeding $31 billion, the company has seen strong momentum, including year-over-year quarterly revenue growth of nearly 35%. This latest clinical success is expected to help drive further adoption of the Signatera test among clinicians and improve its case for reimbursement from insurance payers, a critical driver for long-term growth.
Wall Street has maintained a largely bullish outlook on the company. Of the 19 analysts covering the stock, 17 rate it as either a 'Buy' or 'Strong Buy'. The consensus analyst price target sits at approximately $248, suggesting further upside from its current level. The stock has been a strong performer, trading near its 52-week high of $246.90.
As reported by several outlets, the successful outcome of the ALTAIR study is a significant milestone. It not only supports the specific drug combination used in the trial but, more importantly, enhances the credibility and clinical utility of the Signatera MRD test as a critical tool in the management of post-surgical colorectal cancer. For Natera, this clinical validation is a key step in its strategy to embed its technology as the standard of care in oncology.