Grail Stock Jumps in August as FDA Schedules a Key Meeting for its Galleri Cancer Test
FDA approval for its multi-cancer early detection test, Galleri, would strengthen the case for the stock.
Overview
Multi-cancer early detection test company Grail (NASDAQ: GRAL) stock rose 15.8% in August, according to data from S&P Global Market Intelligence. However, the move was anything but linear. Instead, it was a tale of two halves: a decline in the first half of the month, followed by a strong reversal in the second, driven by pivotal regulatory news.
Grail's main aim is to convince medical insurers that its MCED test, Galleri, deserves adoption on a cost-benefit basis. In other words, will it detect cancers early enough to improve patient outcomes and enable less costly, less invasive treatments? It's not an easy calculation to make, as insurers need to factor in considerations such as the cost of confirmation testing for those patients that Galleri detects cancer in but do not turn out to have cancer.
Details
The healthcare stock's case wasn't helped by the failure to meet the primary endpoint of a statistically meaningful reduction in the incidence of combined late-stage (Stage III + IV) cancers in more than 50 cancer types tested in a 3-year 142,000-person population trial with England's National Health Service.
Source
Originally published at www.fool.com.