Guardant’s Growth Strategy Remains Sound With Potential Liquid Biopsy Test Approval on the Horizon

Guardant Health is taking a slightly different approach than liquid biopsy peers Illumina and Exact Sciences by initially targeting the early-stage detection and screening niche through individualized cancer tests. We expect Guardant will be a first mover in colorectal cancer liquid biopsy with the Lunar-2 test currently awaiting U.S. Food and Drug Administration approval, and we estimate the U.S. market opportunity at $18 billion for colorectal cancer screening alone. We believe Guardant is ahead of peers in single-cancer screening, which could lead to FDA approval by early 2024. If this occurs, we would expect the company to rapidly pursue other indications, such as lung, breast, and ovarian cancer, and a possible combination multi-cancer test in the long run.