Veracyte

Veracyte is a global molecular diagnostics company engaged in developing and commercializing genetic tests across the patient care continuum, which includes early detection, disease diagnosis, prognosis, and treatment of various cancers. Its genomic tests are developed using clinical science, next-generation RNA sequencing, and machine learning. The company has exclusive global diagnostics rights to deliver its genomic tests to physicians and their patients from local laboratories worldwide through its nCounter FLEX Analysis System, a diagnostic instrument platform.

By August 2021, the company had four commercialized genetic tests: 1) Afirma Genomic Sequencing Classifier and Xpression Atlas, which are used to identify patients with benign thyroid nodules, ruling out unnecessary thyroid surgery; 2) Percepta Genomic Sequencing Classifier for lung cancer diagnosis; 3) Envisia Genomic Classifier that differentiates idiopathic pulmonary fibrosis from other lung diseases without surgery; and 4) Prosigna Breast Cancer Prognostic Gene Signature Assay test that informs next steps for patients with early-stage breast cancer, as well as provides cancer subtype classification information. It is also developing a nasal swab test for early lung cancer detection and a lymphoma subtyping test. 

In 2021, it acquired commercial-stage precision oncology company Decipher Biosciences (to offer genetic testing in urologic cancers) and HalioDx (to expand its companion diagnostic capabilities). Veracyte has biopharmaceutical collaborations with Johnson & Johnson, Acerta Pharma, Loxo Oncology, and Bayer AG. 

In November 2023 Veracyte and Illumina entered into a long-term collaboration aiming at developing decentralized in vitro diagnostic (IVD) tests. The collaboration targeted to develop and offer these IVD tests via Illumina’s advanced NextSeq 550Dx next-generation sequencing instrument. The tests devised were expected to be majorly used to diagnose and devise treatment plans for specific ailments, such as cancerous lung nodules and early-stage breast cancer.

In January 2024, Veracyte reached a definitive agreement to buy C2i Genomics, an Israeli company that detects minimal residual disease (MRD). The acquisition deal involved an initial payment of USD 70 million in Veracyte shares, with an additional USD 25 million tied to future performance milestones over the next two years.

In February 2024, Veracyte completed its acquisition of genetic testing company C2i Genomics at a consideration of USD 70 million (subject to customary purchase price adjustments) paid through 2.7 million shares of Veracyte. An additional amount of up to USD 25 million was payable in cash or Veracyte shares at the buyer’s election contingent on future performance relating to milestones over the next two years.

Funding and Financials     

The company began trading on Nasdaq in October 2013 under the ticker symbol “VCYT". For the year ended 2022 , net loss amounted to USD 36.6 million, up by 52% YoY  while revenue for the year grew 35% YoY to USD 296.5 million. Its Q1 2023 net loss amounted to USD 8.1 million, up 44% YoY, and revenue grew 22% YoY to USD 82.4 million. The company is expecting to achieve revenue of USD 330 million–340 million, implying a growth rate of 11%–15%, as the company anticipates mid-to-high teens YoY growth of testing and product revenue to be offset by a decline in biopharmaceutical and other revenue for 2023.