Why Grail (GRAL) Is Falling Today

Grail’s (GRAL) stock is dropping 6% after the company reported fourth-quarter revenue above analysts’ average estimate and noted that Tricare, a large health insurance provider, had decided to provide coverage of Grail’s Galleri test for a portion of its members. However, the company’s 2024 screening revenue growth came in at the midpoint of its previous guidance range, and some investors may have expected the firm to report screening sales above that level.

Galleri is a multi-cancer early detection test.

Coverage of Grail’s Test by Tricare

Tricare agreed to cover the Galleri test for its members who are 50 years old or older and who have an elevated risk of contracting cancer, Grail stated. Tricare covers active duty service members, retired service members, and their families. It also covers certain former spouses and survivors of service members.

A Look at Grail’s Q4 Results

The company’s Q4 revenue jumped 26% versus the same period a year earlier to $38.3 million, well above analysts’ average estimate of $34.4 million. Moreover, the company’s gross profit, excluding some items, climbed 17% year-over-year to $17.9 million.

But GRAL’s 2024 screening revenue climbed 45%, coming in only at the midpoint of the company’s previous guidance of 40%-50% growth.

Grail’s Comments

“We grew U.S. Galleri revenue 45% year-over-year (in 2024), selling more than 137,000 Galleri tests,” CEO Bob Ragusa said on the company’s earnings call.