AUSTIN, Texas - Natera, Inc. (NASDAQ: NTRA), a healthcare diagnostics company with impressive revenue growth of 57% over the last twelve months and a market capitalization of $19 billion, has initiated the HEROES clinical trial to investigate the de-escalation of therapy in metastatic HER2+ breast cancer patients. According to InvestingPro analysis, the company maintains a strong gross profit margin of 60%, despite operating in a competitive healthcare sector. The trial, which started enrolling participants this week, is funded by the French Ministry of Health and is sponsored by Unicancer, a French oncology hospital network.
HEROES is a phase II trial that will include approximately 170 participants across up to 35 sites in France. The study aims to explore the potential for ceasing or reducing anti-HER2 targeted therapy in patients who have been on such treatments for at least two years. While the company’s stock has shown strong momentum with a 58% return over the past year, InvestingPro subscribers have access to 13 additional key insights about Natera’s financial health and market position.
Patients who test negative for circulating tumor DNA (ctDNA) using Natera’s Signatera test at the start of the trial will halt treatment and undergo regular monitoring. If these patients exhibit disease progression or become Signatera-positive during the trial, they will resume prior therapy or begin new treatments.
The primary goal of the HEROES trial is to measure 1-year progression-free survival in the Signatera-negative cohort. Researchers will also evaluate ctDNA dynamics and quality-of-life metrics to understand the feasibility of ctDNA-guided treatment de-escalation in patients without detectable molecular disease.
Dr. Thibault de la Motte Rouge, the principal investigator of the trial, noted that the study could significantly impact oncologists’ approach to treating metastatic HER2+ breast cancer and potentially lead to further ctDNA-guided research in breast cancer treatment.
Angel Rodriguez, M.D., Natera’s senior medical director of oncology, expressed optimism about the trial’s potential to help oncologists identify patients who could safely discontinue therapy, thereby avoiding the costs and side effects associated with prolonged treatment.
Signatera, a personalized molecular residual disease test, is designed to detect and quantify cancer remnants in the body using ctDNA, enabling earlier identification of recurrence and aiding in treatment decision-making. The test is Medicare-covered for several cancer types and has been validated across multiple cancer types with over 100 peer-reviewed publications. Natera’s strong financial position is reflected in its current ratio of 4.0, indicating robust liquidity to support ongoing research and development. For detailed analysis of Natera’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
The information in this article is based on a press release statement from Natera, Inc.
In other recent news, Natera has reported strong financial results for the fourth quarter of 2024, with earnings surpassing Wall Street expectations. The company achieved a revenue of $476 million, marking a 53% increase year-over-year, and posted an earnings per share (EPS) of -$0.41, which was better than the forecasted -$0.49. Natera’s gross margins also improved significantly to 63%, up from 51% the previous year. Canaccord Genuity responded to these results by maintaining a Buy rating and raising the company’s price target to $195, citing optimism about Natera’s revenue growth prospects for 2025.
TD Cowen also reaffirmed their Buy rating on Natera, maintaining a price target of $195, driven by the company’s promising 2025 sales guidance. Analysts from both firms highlighted the company’s strategic operational expenditures and potential benefits from improved Medicare Advantage rates as factors supporting their positive outlook. Additionally, Natera’s consistent positive operating cash flows for four consecutive quarters have been noted as a sign of strong financial performance.
The company has set its 2025 revenue guidance between $1.87 billion and $1.95 billion, indicating a 24% growth at the midpoint. Natera plans to continue investing in research and development, focusing on molecular residual disease (MRD) and early cancer detection. These recent developments underscore the company’s strong position in the market and its potential for continued growth.
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