What Happened?
Shares of genetic testing company Natera (NASDAQ: NTRA). fell 4.1% in the afternoon session after a key competitor, Exact Sciences, announced the launch of a new multi-cancer early detection blood test.
Exact Sciences, a leader in cancer diagnostics, launched its Cancerguard™ test, which is now available as a laboratory-developed test in the United States. This move introduces significant competition in the early cancer detection market, a key area for Natera, likely raising investor concerns about market share and future growth.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Natera? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Natera’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock dropped 0.9% on the news that the company announced an unfavorable court ruling in its ongoing patent litigation with competitor NeoGenomics.
The U.S. District Court for the Middle District of North Carolina invalidated certain claims in two patents that Natera had asserted against NeoGenomics' v1.1 RaDaR test. This legal setback was seen as a victory for NeoGenomics, whose own stock surged on the news. Natera stated that it is evaluating its options, which include a potential appeal. The company also clarified that the ruling does not impact a separate patent that was previously used to secure an injunction against an earlier version of the NeoGenomics product. Nevertheless, the invalidation of these patent claims represents a significant headwind in Natera's efforts to protect its intellectual property.
Natera is up 4.6% since the beginning of the year, and at $167.92 per share, it is trading close to its 52-week high of $177 from February 2025. Investors who bought $1,000 worth of Natera’s shares 5 years ago would now be looking at an investment worth $2,720.
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