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Veracyte Q2 Earnings Jump 32 Percent

NEW YORK – Veracyte reported after the close of the market Tuesday that its second quarter 2019 revenues grew 32 percent year over year. 

For the three months ended June 30, the genomic testing firm reported total revenues of $30.1 million compared to $22.8 million in Q2 2018, beating analysts' average estimate of $28.9 million. 

In addition, the firm's genomic testing volumes grew 26 percent year over year to 9,663 tests. Veracyte said revenues from its Percepta bronchial genomic classifier, which it had launched an updated version of in June, rose to more than $1 million and volume of 744 tests. 

"Our strong second quarter performance was fueled by the growth of our products in three clinical indications, biopharmaceutical services revenue from milestone achievements, and operational and financial discipline," Veracyte CEO and Chairman Bonnie Anderson said in a statement. 

In a conference call with investors Tuesday afternoon, Anderson noted that the number of sites using Veracyte's Percepta and Envisia genomic classifiers more than doubled from the first to second quarter. 

According to Veracyte, total revenue included $3.5 million in biopharmaceutical revenue. 

Veracyte also achieved in-network status with four Blue Cross Blue Shield plans in New Jersey, North Carolina, South Carolina, and Vermont, covering about 8.5 million members. 

The company's net loss shrunk to $2.5 million, or $0.05 per share, from $6.2 million, or $.18 per share, in the year ago quarter. It beat Wall Street's consensus estimate for a loss per share of $.27.

Veracyte's R&D expenses totaled $3.3 million in Q2 2019, down 28 percent from $4.6 million in Q2 2018. The firm's SG&A expenses, meantime, jumped 33 percent to $20.8 million from $15.6 million. As previously noted, Veracyte expects to be cash-flow breakeven by the end of the year. 

As a result of its Q2 2019 performance, the company raised its full-year revenue guidance to between $119 million and $122 million, up from a previous estimate of $117 million to $121 million. 

The company ended the quarter with $192.6 million in cash and cash equivalents. 

In May, Veracyte raised $137.9 million in a public offering, selling more than 6.3 million shares of common stock.

"Over the course of the next 12 to 24 months … we'll begin to move the needle meaningfully for coverage of Percepta and Envisia at the commercial level, and that will start to march the average reimbursement price up the ladder," Anderson said.

In Wednesday morning trade on the Nasdaq, shares of Veracyte were down a fraction of 1 percent at $29.43.