Personalis to receive $36M investment from Tempus AI

Personalis and Tempus AI (TEM) announced that the companies have expanded their commercial relationship. The companies agreed in November 2023 to collaborate and bring ultra-sensitive MRD testing to market and launched their efforts at the recent ASCO meeting. Tempus is serving as exclusive commercial partner for Personalis’ ultra-sensitive tumor-informed MRD product for broad patient adoption in breast and lung cancers, and for immunotherapy monitoring across all solid tumors. Following positive reaction and exceptionally strong demand, the companies have agreed to accelerate their efforts, expanding under the following key terms: Tempus to accelerate its commercialization efforts over the first two years; Personalis to increase the quantity of patient samples it will accept over the corresponding period; Tempus to invest approximately $36M into Personalis. Under the agreement, Tempus agreed to exercise its existing warrants to purchase 9.2M shares of common stock in accordance with their terms at an average purchase price of $2.00 and to purchase an additional 3.5M shares of common stock at a price per share of $5.07, which was the last reported closing price of Personalis’ common stock as reported on Nasdaq on August 15 for a total investment of approximately $36M in Personalis. As a result, Tempus will own approximately 19.3% of Personalis’ outstanding common stock following the closing of the transactions.