Tempus Next Launches New Algorithm to Close Care Gaps in Guideline-Directed IHC Testing, Starting with HER2

Rhea-AI Summary

Tempus AI (NASDAQ: TEM) has launched a new program under its Tempus Next platform to identify care gaps in guideline-directed IHC testing, starting with HER2. The program uses a new RNA-based algorithm integrated into Tempus' xR RNA sequencing assay to predict HER2 positivity in tumor samples. This AI-driven approach aims to surface patients more likely to benefit from confirmatory IHC testing, aligning with clinical guidelines for select metastatic cancers.

The program is being piloted at select sites, where Tempus will notify physicians of patients identified as potentially HER2 positive, enabling them to consider ordering confirmatory IHC tests. This initiative leverages Tempus' genomics, AI applications, and data capabilities to provide real-time, guideline-directed care recommendations to physicians, demonstrating the practical application of AI in improving clinical care as treatment options become more complex.

Positive

• Launch of new AI-driven program to identify care gaps in guideline-directed IHC testing
• Integration of RNA-based algorithm into xR assay to predict HER2 positivity
• Potential to improve patient care by surfacing candidates for confirmatory IHC testing
• Demonstration of practical AI application in clinical care

Negative

• None.

Medical Research Analyst

Tempus AI's launch of a new algorithm within their Tempus Next platform represents a significant advancement in precision medicine, particularly for cancer care. This development has several important implications:

• Enhanced Biomarker Detection: The algorithm's ability to identify patients more likely to test positive for actionable biomarkers could lead to more targeted and efficient testing protocols. This is particularly important for HER2 testing in metastatic cancers, where timely identification can significantly impact treatment decisions.
• Guideline Adherence: By alerting physicians to patients who may benefit from confirmatory IHC testing, the system promotes adherence to clinical guidelines. This could help standardize care and ensure patients receive appropriate, evidence-based treatments.
• Integration of AI and Genomics: The program demonstrates the practical application of AI in clinical settings, leveraging RNA sequencing data to predict IHC/ISH positivity. This integration of advanced technologies could set a new standard for precision oncology.

However, it's important to note that while this algorithm shows promise, its real-world performance and impact on patient outcomes will need to be closely monitored. The involvement of life sciences company sponsors in funding the development also raises questions about potential biases or conflicts of interest that should be transparently addressed.

Overall, this development could potentially streamline the diagnostic process, leading to more timely and accurate treatment decisions in oncology. It's a step towards more personalized medicine, but its true value will be determined by its performance in clinical practice and its ability to improve patient outcomes.

Tech Expert

Tempus AI's new algorithm represents a significant technological leap in the application of AI to healthcare, particularly in oncology. Here are key points to consider:

• AI-Driven Precision Medicine: The algorithm's ability to predict IHC/ISH positivity from RNA data showcases the power of machine learning in interpreting complex biological data. This could potentially reduce the need for invasive testing procedures.
• Scalability and Integration: As part of the Tempus Next platform, this algorithm demonstrates how AI can be seamlessly integrated into existing clinical workflows. The ability to surface actionable insights at the point of care is a important step towards more efficient healthcare delivery.
• Data Utilization: The program leverages Tempus's vast genomic and clinical data resources, illustrating the value of big data in healthcare. This approach could pave the way for similar applications across other biomarkers and disease areas.

However, there are technical considerations to keep in mind:

• Algorithm Transparency: The exact workings of the algorithm are not detailed, which is common in proprietary AI systems. This 'black box' nature could pose challenges for clinical adoption and regulatory approval.
• Data Privacy and Security: As with any system handling sensitive patient data, robust security measures must be in place to protect patient privacy and comply with healthcare regulations.
• Interoperability: The success of this system will partly depend on its ability to integrate with various Electronic Health Record (EHR) systems and laboratory information systems.

While promising, the true test of this technology will be its performance in real-world clinical settings and its ability to improve patient outcomes while maintaining data security and clinical accuracy.

Financial Analyst

The launch of Tempus AI's new algorithm within the Tempus Next platform could have significant financial implications for the company and the broader healthcare sector:

• Market Positioning: This innovation strengthens Tempus's position in the precision medicine market, potentially leading to increased market share and revenue growth. The company's ability to offer a comprehensive solution combining genomics, AI and data analytics sets it apart from competitors.
• Revenue Streams: The new algorithm could create additional revenue streams through licensing to healthcare providers or partnerships with pharmaceutical companies for biomarker identification. However, the exact monetization strategy is not clear from the announcement.
• Cost Efficiency: By potentially reducing unnecessary testing, this algorithm could lead to cost savings for healthcare systems. This could make Tempus's offerings more attractive to healthcare providers and payers, driving adoption.
• Partnerships: The mention of life sciences company sponsors suggests potential for future collaborations or partnerships, which could lead to additional revenue opportunities.

Investors should consider:

• Regulatory Landscape: The regulatory approval process for AI in healthcare can be complex and time-consuming, potentially affecting the timeline for widespread adoption and revenue realization.
• Competition: While innovative, Tempus operates in a competitive field. The company's ability to maintain its technological edge will be important for long-term success.
• Scalability: The initial focus on HER2 testing is promising, but the platform's ability to expand to other biomarkers and disease areas will be key to its long-term value proposition.

While this development is promising, investors should closely monitor the real-world performance of the algorithm, its adoption rate and its impact on Tempus's financial performance in the coming quarters.

New RNA-based algorithm is now available with the xR assay

CHICAGO--(BUSINESS WIRE)-- Tempus AI, Inc. (NASDAQ: TEM), a leader in artificial intelligence and precision medicine, today announced the launch of a new program specifically geared towards using algorithms to surface patients who are more likely to test positive for actionable biomarkers, and who should receive confirmatory testing in accordance with clinical guidelines. This program is part of the larger Tempus Next platform, which is designed to identify care gaps and equip clinicians with actionable insights at the point of care. The new Next program is now available and initially focused on the identification of care gaps associated with the human epidermal growth factor receptor 2 (HER2) testing recommended under clinical guidelines for patients with select metastatic cancers.

As part of the initial launch, Tempus has built an algorithm that runs as part of xR, the company’s RNA sequencing assay, to help surface patients who are particularly likely to benefit from on-guideline immunohistochemistry (IHC) testing. The algorithm, which is run as part of Tempus’ xR CAP/CLIA Laboratory Developed Test, uses RNA data to predict IHC/ISH positivity in a tumor sample. Tempus is initially deploying the program at a set of pilot sites. Tempus will notify physicians of patients who are identified by the algorithm as more likely to be HER2 positive, so that they can consider ordering confirmatory IHC testing from their laboratory of choice. The development of this program was funded by Tempus and one or more life sciences company sponsors.

“This program is truly the intersection of all three of our business units – genomics, AI applications, and data – leveraging our deep connectivity with providers, comprehensive testing portfolio, and AI-enabled data analytics to deliver a tool that physicians can use in real-time to provide patients with the most up-to-date, guideline-directed care,” said Ezra Cohen, MD, Chief Medical Officer of Oncology at Tempus. “Next demonstrates how the practical application of AI can have a positive impact on everyday clinical care by meeting the needs of patients as treatment choices become increasingly complex.”

About Tempus

Tempus is a technology company advancing precision medicine through the practical application of artificial intelligence in healthcare. With one of the world’s largest libraries of multimodal data, and an operating system to make that data accessible and useful, Tempus provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. The goal is for each patient to benefit from the treatment of others who came before by providing physicians with tools that learn as the company gathers more data. For more information, visit tempus.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, about Tempus and Tempus’ industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including, but not limited to, statements regarding the potential impact of Next and the indicated use of the product. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. Tempus cautions you that the foregoing may not include all of the forward-looking statements made in this press release.

You should not rely on forward-looking statements as predictions of future events. Tempus has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that it believes may affect Tempus’ business, financial condition, results of operations and prospects. These forward-looking statements are subject to risks and uncertainties related to: changing Medicare rates; the intended use of Tempus’ products and services; Tempus’ financial performance; the ability to attract and retain customers and partners; managing Tempus’ growth and future expenses; competition and new market entrants; compliance with new laws, regulations and executive actions, including any evolving regulations in the artificial intelligence space; the ability to maintain, protect and enhance Tempus’ intellectual property; the ability to attract and retain qualified team members and key personnel; the ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures or investments; the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed conflict, as well as risks, uncertainties, and other factors described in the section titled “Risk Factors” in Tempus’ Final Prospectus filed with the Securities and Exchange Commission (“SEC”) on June 17, 2024, pursuant to Rule 424(b)(4) under the Securities Act, as well as in other filings Tempus may make with the SEC in the future. In addition, any forward-looking statements contained in this press release are based on assumptions that Tempus believes to be reasonable as of this date. Tempus undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801306537/en/

Erin Carron

erin.carron@tempus.com

Source: Tempus AI, Inc.

FAQ

What is Tempus Next's new algorithm designed to do for HER2 testing?

Tempus Next's new algorithm is designed to identify patients who are more likely to test positive for HER2 and should receive confirmatory IHC testing in accordance with clinical guidelines for select metastatic cancers.

How does Tempus AI (TEM) integrate the new algorithm into its existing services?

The new algorithm is integrated into Tempus' xR RNA sequencing assay, which is a CAP/CLIA Laboratory Developed Test. It uses RNA data to predict IHC/ISH positivity in tumor samples.

What action will Tempus take after identifying potential HER2 positive patients?

Tempus will notify physicians of patients identified by the algorithm as more likely to be HER2 positive, allowing them to consider ordering confirmatory IHC testing from their laboratory of choice.

How does this new program by Tempus AI (TEM) aim to improve patient care?

The program aims to improve patient care by helping to close care gaps in guideline-directed testing, potentially leading to more timely and appropriate treatment decisions for patients with select metastatic cancers.