The Situation

Guardant Health Inc (NASDAQ: GH) shares – a precision oncology biotech company engaged in cancer treatment – plunged after recent blood test failed to meet investor's expectations. As of 12:00 PM ET, Guardant shares dropped by 31.33%.

The Explanation

Guardant Health Inc officially went public on Oct 4, 2018, reaching an all-time high of $179.10 on Feb 12, 2021, with a price performance drop of just 2.81% overall. The company shares dropped to $28.41 as of press time, with a 71.76% year-to-date.

The company announced its blood test catching 83% of colorectal cancer cases. The tests were designed to screen for cancer, and although the company says this could unlock a $20 billion market, investors were disappointed with the results.

See the $GH chart performance here.

The Effect

Guardant Health Inc stocks reportedly dropped after its blood test results were released. The investors' reaction happened as some of them were afraid that the results were not good enough to gain approval and that it won't be the first choice when it comes to colorectal cancer screening.

Since investors can't know for sure if the test results are good enough to gain approval, it is more important to focus on Guardant's business.

See full $GH flow at: https://unusualwhales.com/stock/GH/flow-overview