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Veracyte Q2 Revenues Rise 25 Percent

NEW YORK (GenomeWeb) – Veracyte reported after the close of the market on Monday that its second quarter revenues rose 25 percent year over year, driven in part by strong sales growth of its Afirma genomic classifier.

For the three months ended June 30, the company reported revenues of $18.4 million, up from $14.7 million in Q2 last year and beating the consensus Wall Street estimate of $18.3 million.

Bonnie Anderson, Veracyte's chairman and CEO, said in a statement that the firm achieved key milestones during the quarter including establishing coverage for the Afirma classifier by all major insurance plans; launching the next-generation version of the classifier with improved performance; and significantly extending the firm's market reach to physicians.

Anderson noted that the firm has "laid the foundation to reach our commercialization goals for the Percepta Bronchial Genomic Classifier in lung cancer diagnosis."

In Q2, the company grew Afirma genomic classifier volume by 11 percent year over year.

The company said that it initiated the transition to the next-generation Afirma genomic sequencing classifier, which can save an estimated 70 percent of benign patients from unnecessary thyroid surgery to rule out thyroid cancer.

It said that it also initiated access to the Afirma genomic classifier through Quest/AmeriPath division's "extensive network of service providers."

In Q2 Veracyte received its first commercial orders for the Percepta genomic classifier, which aids in the screening and diagnosis of lung cancer.

From a reimbursement viewpoint, the firm received Anthem and additional Blue Cross Blue Shield coverage for its Afirma classifier, which it said is among a few genomic assays to attain coverage "by virtually all health plans in the US." Veracyte also inked five new contracts through Regence Blue Cross and Blue Cross of Kansas, bringing the total contracted lives for the Afirma classifier to about 163 million.

The company's net loss for the quarter narrowed to $7.3 million, or $.22 per share, from $11.2 million, or $.40 per share, in Q2 2016. Analysts had expected a loss per share of $.25.

Veracyte's Q2 R&D costs dropped 16 percent to $3.6 million from $4.3 million in the year-ago period, while its SG&A expenses decreased about 1 percent to $14.2 million from $14.3 million in Q2 2016.

The firm said its full-year 2017 revenue guidance continues to be from $76 million to $84 million. The average analyst estimate of Veracyte's revenues for 2017 is $77 million. .

Veracyte ended the quarter with $46.5 million in cash and cash equivalents.