Stock of the Day

February 25, 2021

Natera (NTRA)

$264.69
+$0.47 (+0.2%)
Market Cap: $37.84B

About Natera

Natera, Inc., a diagnostics company, develops and commercializes molecular testing services worldwide. Its products include Panorama, a non-invasive prenatal test that screens for chromosomal abnormalities of a fetus, as well as in twin pregnancies; Horizon carrier screening test for individuals and couples determine if they are carriers of genetic variations that cause certain genetic conditions; Vistara single-gene NIPT screens for 25 single-gene disorders that cause severe skeletal, cardiac, and neurological conditions; Spectrum, preimplantation genetic tests for couples undergoing IVF; Anora that analyzes miscarriage tissue from women; Empower, a hereditary cancer screening test; and non-invasive prenatal paternity product, which allows a couple to establish paternity without waiting for the child to be born. The company also provides Signatera, a ctDNA blood test for molecular residual disease assessment and surveillance of disease recurrence in patients previously diagnosed with cancer; Altera, a tissue based comprehensive genomic profiling test; Prospera to assess active rejection in patients who have undergone kidney, heart, and lung transplantation; and Renasight, a kidney gene panel test. In addition, it offers Constellation, a cloud-based software product that enables laboratory customers to gain access through the cloud to the company's algorithms and bioinformatics to validate and launch tests. The company offers products through its direct sales force, as well as through a network of laboratory and distribution partners. It has a partnership agreement with BGI Genomics Co., Ltd. to develop, manufacture, and commercialize NGS-based genetic testing assays; and Foundation Medicine, Inc. to develop and commercialize personalized circulating tumor DNA monitoring assays. The company was founded in 2003 and is headquartered in Austin, Texas.

Today's Trend

Natera, Inc. (NASDAQ: NTRA) shares have been rising on news that could expand the company’s international reach and transplant-testing pipeline, with sentiment also supported by strong trading activity. The biggest catalyst was regulatory approval in Japan for Signatera in colorectal cancer, which makes it the first PMDA-approved MRD test in the country.

  • Japan’s Ministry of Health, Labour and Welfare approved Natera’s Signatera MRD test for colorectal cancer in the adjuvant setting, marking the first PMDA-approved MRD test in Japan and potentially opening a meaningful new market for the company. Article Title
  • Natera announced a strategic partnership with Eledon for Prospera monitoring in a planned Phase 3 kidney transplant trial, adding to the company’s transplant diagnostics opportunities. Article Title
  • Natera also teamed with Pirche to connect transplant risk assessment with Prospera monitoring, another development that could support adoption of its transplant-testing platform. Article Title
  • Barclays lowered its price target on Natera while keeping an overweight rating, which may temper some enthusiasm but does not indicate a bearish change in outlook. Article Title
  • A report noted increased short-interest activity in June, but the reported figures were effectively zero, so the data does not appear to have much practical impact on the stock.

Overall, NTRA appears to be moving higher on optimism around Signatera’s Japan approval and other business-development wins, while the brokerage target cut and short-interest note look secondary.

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