Tempus AI, Inc. (NASDAQ: TEM) announced it has received 510(k) clearance from the U.S. Food and Drug Administration for its RNA-based Tempus xR IVD device on September 22, 2025. The device will be offered as a life sciences tool to support drug development programs for biopharma partners.
Advanced RNA Sequencing Technology
The Tempus xR IVD assay represents a qualitative next-generation sequencing-based in vitro diagnostic device that uses targeted high-throughput hybridization-based capture technology. The device detects rearrangements in two genes using RNA isolated from formalin-fixed paraffin embedded (FFPE) tumor tissue specimens from patients with solid malignant neoplasms.
RNA sequencing captures a large array of biological information and offers deeper insights into the mechanisms of diseases, including enhanced fusion detection. According to the company, RNA analysis is increasingly an important tool in research and development because it can identify molecular pathways and networks that are directly involved in disease progression.
Clinical Applications and Therapeutic Development
"We have long known that RNA sequencing offers additional insights beyond DNA alone, but only now are we beginning to unlock its full value in supporting therapeutic development," said Kate Sasser, PhD, Chief Scientific Officer at Tempus. "This FDA clearance further demonstrates the promise of RNA sequencing and opens up new opportunities for us with our biopharma customers."
The diagnostic information provided by xR IVD is intended for use by qualified healthcare professionals in accordance with professional guidelines in oncology for patients with previously diagnosed solid malignant neoplasms. However, results from xR IVD are not intended to be prescriptive or conclusive for labeled use of any specific therapeutic product.
Strategic Positioning in Precision Medicine
Sasser emphasized that life science partners can now leverage the RNA assay to more precisely identify which patients are most likely to respond to specific therapies and to design more efficient clinical trials. "As new therapeutics tied to RNA biomarkers enter the market, we believe that this assay will become even more critical for personalized treatments for patients with cancer," she added.
The FDA authorization further solidifies Tempus as a one-stop-shop for precision medicine solutions. Collaborators can leverage Tempus's comprehensive collection of intelligent diagnostics and growing multimodal dataset that supports therapeutic innovation. The xR IVD represents one of many solutions Tempus is applying to advance oncology therapeutic research and development.
Market Performance and Competitive Landscape
Tempus AI shares have demonstrated strong performance, rallying 55.1% in the past year, significantly outperforming the industry's 22.7% growth and the S&P 500 composite's 18.7% improvement. However, the stock currently trades at a forward 12-month Price-to-Sales ratio of 10.16X compared with the industry average of 5.59X.
The company operates in a competitive landscape alongside other genomics leaders. Illumina continues to expand its NGS oncology portfolio with its market-leading TruSight Oncology assay TSO 500, while QIAGEN sees significant opportunities for NGS to deliver on precision medicine through its QDI business and AI-integrated solutions.
