Shares in Grail, the company developing a blood test aimed at detecting many different types of cancer early, when they can be treated more effectively, surged 33% Monday after the Food and Drug Administration posted documents ahead of an advisory committee meeting that suggest the agency may take a favorable view of the test.
The meeting, scheduled for Wednesday, will bring together key experts to discuss the test, known as Galleri. The FDA is not obliged to follow the advice of these panels, but it often does.
Investors had already been bidding up Grail’s stock in anticipation of the meeting. The test is already available as a laboratory-based diagnostic, but FDA approval would be expected to help lead to reimbursement from Medicare and other insurance payors.
