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Veracyte's Q4 Revenues Increase 7 Percent

NEW YORK (GenomeWeb) – Veracyte reported after the close of the market on Tuesday that its fourth quarter 2017 revenues increased 7 percent compared to the fourth quarter 2016.

For the three months ended Dec. 31, 2017, the genomic testing firm reported total revenues of $19.6 million, compared to $18.3 million in Q4 2016, and just beating the analysts' average estimate of $19.0 million.

"We delivered a solid year of growth in 2017," Veracyte CEO Bonnie Anderson said in a statement. She noted that highlights included growing its Afirma testing franchise in thyroid cancer diagnosis and advancing its position in pulmonology with its Percepta Bronchial Genomic Classifier for lung cancer and Envisia Genomic Classifier for idiopathic pulmonary fibrosis.

"We enter 2018 with a stronger, more efficient operational structure and a robust, multi-product commercial team that we believe is poised to drive revenue growth across our endocrinology and pulmonology franchises," she said.

The firm reported 7,153 clinical tests in Q4 2017, a 13 percent increase over Q4 2016 with the vast majority, 7,053, Afirma tests. Percepta accounted for 80 tests.

Veracyte recognized a net loss of $8.4 million, or $.24 per share, in the recently completed quarter, compared to $4.4 million, or $.14 per share in Q4 2016. Wall Street, on average, anticipated a $.20 loss per share.

The firm's Q4 R&D expenses were $3.2 million, down 11 percent from $3.6 million in prior year period, while its SG&A expenses increased 24 percent to $14.4 million from $11.6 million.

For the full year 2017, Veracyte recognized $72.0 million in total revenues, up 11 percent from $65.1 million in 2016 and beating the analysts' consensus estimate of $71.3 million.

It reported results for just over 26,000 total tests in the year, 105 of which were Percepta tests and the remainder Afirma tests. In addition, the company increased the number of lives under contract by nearly 20 million people during the year, Anderson said during a conference call discussing Veracyte's  financial results. Over 175 million people now have access to Afirma as an in-network covered test, she added.

Full-year 2017 net loss was $31.0 million, or $.91 per share, compared to a net loss of $31.4 million, or $1.09 per share, in 2016. The consensus Wall Street estimate was a loss per share of $.87.

Full year R&D expenses were trimmed 9 percent to $13.9 million from $15.3 million in 2016 while its SG&A expenses increased 6 percent to $55.3 million from $52.0 million.

In 2018, Veracyte expects full year revenues to be between $81 million and $83 million. Anderson said during the call that although Afirma will constitute around 95 percent of revenues in 2018, it anticipates that by the end of the year it will run between 500 and 1,000 Percepta tests per quarter.

As of Dec. 31, 2017, the firm had $33.9 million in cash and cash equivalents.

Veracyte's stock was up 1 percent to $5.91 on the Nasdaq during Wednesday morning trading.