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Veracyte Q3 Revenues Flat but Beat Analyst Estimates

NEW YORK – Genomic testing firm Veracyte reported after the close of the market Monday flat year-over-year revenues for the third quarter of 2020.

For the three months ended Sept. 30, the South San Francisco, California-based firm reported total revenues of $31.1 million compared to $31.0 million in Q3 2019 and beating analysts' average estimate of $23.9 million.

Total revenue included $30.3 million in testing and product revenue and $800,000 in biopharmaceutical revenue.

Veracyte reported that testing volume for its genomic tests, the Afirma, Percepta, and Envisia assays, reached 10,242, an increase of 3 percent over Q3 2019.

On a conference call with investors Monday afternoon, Veracyte Chief Operating Officer and CFO Keith Kennedy elaborated further, noting that the firm expanded its Envisia Genomic Classifier volume to 303 tests, an increase of about 36 percent from 223 in the prior year quarter. In September, the Centers for Medicare and Medicaid Services approved new Advanced Diagnostic Laboratory Test status for Envisia.

In addition, Veracyte said its Afirma test volume grew to 9,437, an increase of about 6 percent from 8,925 in Q3 2019. However, the company's Percepta test volume fell to 502 tests, which was down about 37 percent from 793 in the same period last year.

"We are pleased with the strong rebound in our business during the third quarter, with revenues returning to pre-pandemic levels, led by our Afirma franchise," Veracyte CEO Bonnie Anderson said in a statement. "We also achieved important reimbursement and clinical-evidence milestones for our tests … [and] also remain on track to launch four new clinical products in 2021."

Veracyte's net loss widened to $4.1 million, or $.08 per share, from a loss of $730,000, or $.02 per share, in the year-ago quarter. The firm beat Wall Street's consensus estimate for a loss per share of $.21.

Veracyte's R&D expenses totaled $4.1 million in Q3 2020, up about 14 percent from $3.6 million in Q3 2019. The firm's sales, marketing, general, and administrative expenses, meanwhile dropped about 1 percent to $19.5 million from $19.7 million.

The company ended the quarter with $345.1 million in cash and cash equivalents.

Veracyte said it is declining to give guidance due to the uncertainty of the COVID-19 pandemic impact and the impending flu season.

In August, Veracyte priced a public offering of 6.9 million shares of its common stock at $30 per share, with net proceeds of about $194 million.

In Tuesday morning trading on the Nasdaq, shares of Veracyte were up 9 percent at $38.17