Grew full-year revenue to between
$358 million and $359 million, an increase of 21%
Acquisition broadens Veracyte’s presence across
the cancer care continuum
Veracyte, Inc. (Nasdaq: VCYT), a leading cancer diagnostics
company, today announced preliminary unaudited financial results
for the fourth quarter and full year ended December 31, 2023. The
company also announced it has reached a definitive agreement to
acquire C2i Genomics, Inc. a minimal residual disease (MRD)
detection company, adding whole-genome MRD capabilities to its
novel diagnostics platform and positioning Veracyte to expand its
offerings along the cancer care continuum. Under the terms of the
agreement, Veracyte will pay $70 million in Veracyte shares at
closing, and up to an additional $25 million based on the
achievement of future performance milestones over the next two
years, payable in Veracyte shares or cash at Veracyte’s
election.
Preliminary Unaudited Financial Results and 2024 Financial
Outlook
For the fourth quarter ended December 31, 2023, as compared to
the same period of 2022, Veracyte expects to report:
- Revenue of between $95 million and $96 million, an increase of
between 18% and 20%
- Total test volume of approximately 34,000, an increase of
21%
For the full year ended December 31, 2023, as compared to the
same period of 2022, Veracyte expects to report:
- Revenue of between $358 million and $359 million, an increase
of 21%
- Total test volume of approximately 127,000, an increase of
24%
Veracyte expects to report cash, cash equivalents and short-term
investments of more than $215 million as of December 31, 2023.
“We had an outstanding fourth quarter and finished 2023 with
continued growth driven by our Afirma and Decipher businesses,”
said Marc Stapley, Veracyte’s chief executive officer. “I could not
be prouder of the Veracyte team and their commitment to our
physician customers and their patients, and look forward to
continued strong execution in 2024 and beyond.”
Veracyte is initiating 2024 testing and product revenue guidance
of 13% to 15% growth, partially offset by declining biopharma and
other revenue, resulting in total company revenue growth of 10% to
12%, or $394 million to $402 million. Further, 2024 cash, cash
equivalents and short-term investments ending balance is expected
to grow by 10% to 12%, in line with total company revenue growth,
excluding approximately $8 million of one-time acquisition related
items but including the expenses required to develop MRD
assays.
C2i Genomics Acquisition
Through its acquisition of C2i Genomics, Veracyte will be
positioned to serve physicians and their patients further along the
cancer care continuum, in combination with its portfolio of
diagnostic and prognostic tests.
“MRD detection and monitoring is a large, rapidly growing space
that provides critical information to physicians and their
patients. The expected acquisition of C2i Genomics will enable us
to expand our role across the cancer care continuum to help monitor
the success of a therapeutic or surgical intervention, and
determine the best course of action for each patient,” said Mr.
Stapley. “We believe that C2i Genomics’ whole-genome technology
will enable earlier detection of MRD and recurrence than imaging
and other molecular tests, resulting in better patient outcomes,
with faster results and smaller sample requirements. This will
further fuel our vision to transform cancer care for patients all
over the world.”
C2i Genomics’ whole-genome, artificial intelligence-powered
approach generates broad signatures from blood more quickly and
efficiently than bespoke panels. The company’s MRD solution
requires less than a tube of blood (as little as 3-4 ml blood, or
1-2 ml plasma), can go from sample to result in just two weeks, and
delivers improved performance compared to imaging and other
molecular tests. Veracyte believes this ability, when combined with
its own prognostic and diagnostic tests, will enable physicians to
track a tumor’s progression as it evolves from early diagnosis
through patient treatment and follow-up.
“Our vision has been to provide clinicians with deeper insight
into their patients’ cancer so that we can help improve treatment
outcomes worldwide,” said Ezra Sofer, chief executive officer and
cofounder of C2i Genomics. “Our goal since the inception of the
company has been to introduce our robust solution into the clinic.
I’m incredibly proud of the progress our team has made and believe
that Veracyte, with its strong presence in multiple cancer
indications and its powerful commercialization capabilities, will
accelerate this vision into a reality.”
Veracyte’s first application of C2i Genomics’ technology will be
a muscle-invasive bladder cancer MRD test, where it plans to
leverage its strong urology commercial channel and a clear pathway
to expected reimbursement. The company plans to develop further MRD
tests in several of its focused indications.
Veracyte expects the upfront purchase price to be subject to
customary balance sheet adjustments and the transaction to close in
the first quarter of 2024.
Morgan Stanley & Co. LLC is serving as financial advisor to
Veracyte, and Fenwick & West LLP is serving as legal advisor.
Perella Weinberg Partners is serving as financial advisor to C2i
Genomics, and Meitar is serving as legal advisor.
About Veracyte
Veracyte (Nasdaq: VCYT) is a global diagnostics company whose
vision is to transform cancer care for patients all over the world.
We empower clinicians with the high-value insights they need to
guide and assure patients at pivotal moments in the race to
diagnose and treat cancer. Our Veracyte Diagnostics Platform
delivers high-performing cancer tests that are fueled by broad
genomic and clinical data, deep bioinformatic and AI capabilities,
and a powerful evidence-generation engine, which ultimately drives
durable reimbursement and guideline inclusion for our tests, along
with new insights to support continued innovation and pipeline
development. For more information, please visit www.veracyte.com
and follow the company on Twitter (@veracyte).
Financial Disclaimer
Veracyte has not completed preparation of its financial
statements for the fourth quarter or full year of 2023. The revenue
ranges presented in this news release for the fourth quarter of
2023 and for the year ended December 31, 2023, as well as the
estimate given for our cash, cash equivalents and short-term
investments, are preliminary and unaudited and are thus inherently
uncertain and subject to change as we complete our financial
results for the fourth quarter of 2023. Veracyte is in the process
of completing its customary year-end close and review procedures as
of and for the year ended December 31, 2023, and there can be no
assurance that final results for this period will not differ from
these estimates. During the course of the preparation of Veracyte’s
consolidated financial statements and related notes as of and for
the year ended December 31, 2023, the company's independent
registered public accountants may identify items that could cause
final reported results to be materially different from the
preliminary financial estimates presented herein.
Veracyte plans to report full audited Q4 and 2023 financial
results during its upcoming earnings call to be held in February
2024.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements,
including, but not limited to our statements related to our plans,
objectives, and expectations (financial and otherwise), including
with respect to 2023 and 2024 financial and operating results; our
anticipated acquisition of C2i Genomics; statements regarding the
expected benefits of the acquisition, including but not limited to:
our expectation that adding whole-genome MRD capabilities to our
unique diagnostics platform will position us to serve physicians
and their patients further along the care continuum; that we
believe this C2i Genomics’ technology will enable us to measure a
tumor’s progression as it evolves from early diagnosis through
patient treatment and follow-ups; and our intentions with respect
to our tests and products, for use in diagnosing and treating
diseases, in and outside of the United States. Forward-looking
statements can be identified by words such as: “appears,”
“anticipate,” “intend,” “plan,” “expect,” “believe,” “should,”
“may,” “will,” “enable,” “positioned,” “offers,” “designed” and
similar references to future periods. Actual results may differ
materially from those projected or suggested in any forward-looking
statements. These statements involve risks and uncertainties, which
could cause actual results to differ materially from our
predictions, and include, but are not limited to: our ability to
launch, commercialize and receive reimbursement for our products;
the ability of the parties to complete the acquisition of C2i
Genomics on a timely basis or at all, including the required
satisfaction or waiver of the closing conditions; our and C2i
Genomics’ ability to execute on our business strategies relating to
the acquisition and realize expected benefits and synergies; the
retention of certain of C2i Genomics’ employees and our ability to
successfully integrate the C2i Genomics business; the risk of
stockholder litigation in connection with the contemplated
transaction; our ability to demonstrate the validity and utility of
our genomic tests and biopharma and other offerings; our ability to
continue executing on our business plan; our ability to continue to
scale our global operations and enhance our internal control
environment; the impact of the war in Ukraine on European economies
and energy supply and other regional conflicts, as well as our
facilities in France; the impact of foreign currency fluctuations,
increasing interest rates, inflation, potential government
shutdowns and turmoil in the global banking and finance system; and
the performance and utility of our tests in the clinical
environment. Additional factors that may impact these
forward-looking statements can be found under the caption “Risk
Factors” in our Annual Report on Form 10-K filed on March 1, 2023,
and our Quarterly Report on Form 10-Q filed for the three months
ended September 30, 2023, filed on November 8, 2023. Copies of
these documents, when available, may be found in the Investors
section of our website at investor.veracyte.com. These
forward-looking statements speak only as of the date hereof and,
except as required by law, we specifically disclaim any obligation
to update these forward-looking statements or reasons why actual
results might differ, whether as a result of new information,
future events or otherwise.
Veracyte, the Veracyte logo, Decipher, and Afirma are registered
trademarks of Veracyte, Inc., and its subsidiaries in the U.S. and
selected countries.
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version on businesswire.com: https://www.businesswire.com/news/home/20240108004593/en/
Investors: Shayla Gorman investors@veracyte.com
619-393-1545
Media: Tracy Morris media@veracyte.com
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