BTIG notes that shares of Tempus AI (TEM) are up on news that the company signed a $200M expanded strategic agreement with AstraZeneca (AZN) and Pathos AI, where the three companies will collaborate to build/use a multimodal foundation model in oncology for therapeutic development, leveraging Tempus’ de-identified oncology data. The firm spoke to Tempus management today, who confirmed that the $200M deal value is on top of its existing $320M partnership with AstraZeneca. Tempus feels good about its data and licensing business, and the company indicated to BTIG that recent pressures in biopharma could even serve as a tailwind for the company as biopharma companies seek ways to invest more efficiently, and the firm thinks leveraging AI models is one way to do that. BTIG believes Tempus’ AI applications and data business represent a significant free call option for investors. The firm reiterates a Buy rating on the shares with a price target of $60.
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