CareDx Stock (CDNA): Why The Price Surged Today

By Amit Chowdhry ● Jan 10, 2022
  • The stock price of CareDx, Inc. (Nasdaq: CDNA) increased by 18.48% in the most recent trading session. This is why it happened.

The stock price of CareDx, Inc. (Nasdaq: CDNA) – The Transplant Company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers – increased by 18.48% in the most recent trading session. Investors are responding positively to the company’s preliminary financial results for the fourth quarter and full-year ended December 31, 2021.

Q4 Highlights

— Revenue is expected to be between $78.6 million to $79.0 million, representing year-over-year growth of 34% to 35%

— Testing volume greater than 41,900, including approximately 700 tests for AlloSure® Lung

— Achieved CLIA validation of AlloMap® Kidney

— Acquired MedActionPlan and The Transplant Pharmacy

— Record testing volume and revenues despite lower sequential transplant procedure volumes

Full Year 2021 Highlights

— Revenue is expected to be in the range of $295.7 million to $296.1 million, representing a year-over-growth of 54%

— Preliminary revenue for the three months ended December 31, 2021, is expected to be between $78.6 million and $79.0 million, an increase of approximately 34% to 35% compared with $58.6 million in the fourth quarter of 2020.

— Testing services revenue for the quarter is expected to be between $68.2 million to $68.6 million, compared with $50.3 million in the same period in 2020. Total AlloSure and AlloMap patient results provided in the quarter were greater than 41,900, which includes approximately 700 AlloSure Lung patient results. — Product revenue in the three months ended December 31, 2021, is expected to be $7.7 million, compared to $5.9 million in the same period in 2020.

— Digital and other revenue in the fourth quarter of 2021 is expected to be $2.7 million, compared to $2.4 million in the same period in 2020. Digital revenues include approximately $0.3 million revenue contribution from newly acquired businesses, MedActionPlan and The Transplant Pharmacy.

— Preliminary revenue for the full year ended December 31, 2021, is expected to be between $295.7 million and $296.1 million, an increase of approximately 54% compared with $192.2 million in 2020.

— Testing services revenue for the year ended December 31, 2021, is expected to be between $258.9 million to $259.3 million, compared with $163.6 million in 2020. Product revenue for the full year 2021 is expected to be $26.8 million, compared to $19.3 million in 2020.

— Digital and other revenue for the full year 2021 is expected to be $10.0 million, compared to $9.3 million in 2020.

— Preliminary cash, cash equivalents, and marketable securities were approximately $348 million as of December 31, 2021.

The preliminary financial information presented in this press release is based on CareDx’s current expectations and may be adjusted as a result of, among other things, the completion of customary annual audit procedures. And CareDx will report fourth-quarter and full-year 2021 financial results and anticipates providing 2022 financial guidance on its February 2022 earnings call.

KEY QUOTE:

“2021 was a record year for CareDx – with greater than 50% revenue growth driven by AlloSure Kidney adoption and greater than 90% attachment rate in HeartCare. A strong foundation for long-term growth strategy has been laid over the last 12 months with the commercial launch of AlloSure Lung, AlloMap Kidney CLIA validation, demonstrated clinical utility of AlloSure with long-term data, and 5 acquisitions connecting the patient journey.”

— Reg Seeto, CEO and President of CareDx

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.