Grail Stock Hit a 12-Month High After Its FDA Panel Win. But Here's the Risk Investors Shouldn't Ignore.
FDA approval will help, as will insurer adoption of Galleri, but the price that they might be willing to pay for the test is also critical.
Overview
It always makes sense to look at the downside risk as well as the upside potential in a stock, and that's particularly the case with a speculative growth stock like a multi-cancer early detection (MCED) test company, Grail (NASDAQ: GRAL). While most of the debate, quite correctly, centers on a binary event (FDA approval of its Galleri test) and then on whether medical insurers cover the test, there's another huge consideration: its pricing.
The company received a boost recently with news that the FDA's Medical Devices Advisory Committee's Molecular and Clinical Genetics Devices Panel voted in favor of Galleri's safety, benefit, and effectiveness, paving the way for FDA marketing approval.
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Originally published at www.fool.com.
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