Tempus AI, Inc. (NASDAQ:TEM) stock is trading higher on Friday after acquiring Paige, an AI company specializing in digital pathology.
Tempus is a technology company focused on adopting AI to advance precision medicine.
The acquisition allows Tempus to grow its dataset, expand its experienced technical team, and establish a strong footprint in digital pathology.
Also Read: Tempus AI Raises Outlook, CEO Cites Faster-Than-Expected Growth And Improved Margins
Deal consideration of $81.25 million is being paid predominantly in Tempus common stock, as well as Tempus’ assumption of Paige’s remaining commitment under its existing Microsoft Azure cloud services agreement.
Founded in 2017, Paige has developed and deployed several AI applications, including the first FDA-cleared AI application in pathology, allowing researchers and pathologists to better detect cancer.
Paige has developed and refined its products through a dataset of almost 7 million digitized pathology slide images and associated clinical and molecular data, stripped of patient identifiers to protect privacy.
Leveraging a dataset of de-identified data and images spanning 45 countries, Paige has also developed the first million-slide foundation model for cancer, empowering researchers and life sciences companies to better understand pathology data and enabling drug discovery and development.
Tempus AI reported a second-quarter adjusted loss of 22 cents per share, beating analyst estimates for a loss of 24 cents per share.
Tempus AI reported quarterly revenue of $314.64 million, beating the consensus estimates of $296.85 million. Revenue increased 89.6% year-over-year.
Genomics contributed $241.8 million in revenue in the quarter, growing 115.3% year over year.
Oncology testing (Tempus genomics) delivered $133.2 million of revenue, up 32.9%, with approximately 26% volume growth versus 20% last quarter.
TEM Stock Prediction For 2025
Equity research can be a valuable source of information for learning about a company’s fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.
Shares of Tempus AI have an average 1-year price target of $74.5, representing an expected downside of 9.49%.
Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Tempus AI, while 3 analysts have bullish ratings. The street high price target from BTIG is $85.0, while the street low from Morgan Stanley is $68.0.
Price Action: TEM stock is trading higher by 7.33% to $82.33 at last check Friday.
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This article Tempus AI Expands Into Digital Pathology With Paige Acquisition originally appeared on Benzinga.com
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