Tempus AI Inc. (NASDAQ:TEM) shares are up on Thursday as Mizuho initiated coverage on the health care-focused artificial intelligence firm.

Analyst Bradley Bowers started coverage with an Outperform rating and a price forecast of $100.

On Wednesday, the company announced a new HRD-RNA algorithm, an AI-driven tool aimed at enhancing the detection of homologous recombination deficiency in tumors.

HRD-RNA Algorithm Boosts Tempus AI Shares

The HRD-RNA algorithm analyzes gene expression to identify patients who could benefit from platinum-based chemotherapy or PARP inhibitors. In a real-world validation study, patients with HRD-RNA-positive metastatic pancreatic cancer treated with first-line platinum-based regimens experienced a significant reduction in mortality risk compared to those receiving non-platinum therapies.

Tempus plans to make this test clinically available later this year, with Chief Development Officer Halla Nimeiri highlighting that the algorithm offers a more functional view of HRD status by examining the transcriptome rather than just the genome.

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