Veracyte Announces Second Quarter 2017 Financial Results

SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Veracyte, Inc. (NASDAQ: VCYT) today announced financial results for the second quarter ended June 30, 2017 and provided an update on recent business progress. For the second quarter of 2017, revenue was $18.4 million, an increase of 25%, compared to $14.7 million for the second quarter of 2016.

"Our strong results for the quarter underscore our ability to execute against our plans,” said Bonnie Anderson, Veracyte's chairman and chief executive officer. “We 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 our market reach to physicians. In addition, we have laid the foundation to reach our commercialization goals for the Percepta Bronchial Genomic Classifier in lung cancer diagnosis. We are thrilled with this progress and believe that we are poised to accelerate growth in the second half of the year."

Second Quarter 2017 Financial Results

For the second quarter of 2017, as compared to the second quarter of 2016:

• Revenue increased 25%, to $18.4 million;
• Operating Expenses declined 1%, to $25.0 million;
• Net Loss and Comprehensive Loss improved 35% to $7.3 million;
• Cash Burn (which is defined as net cash used in operating activities and net capital expenditures) improved 41%, to $5.0 million; and
• Cash and Cash Equivalents was $46.5 million at June 30, 2017.

Second Quarter 2017 and Recent Business Highlights

Commercial Achievements:

• Grew Afirma genomic classifier volume by 11% in the second quarter of 2017, compared to the second quarter of 2016;
• Initiated the transition to the next-generation Afirma Genomic Sequencing Classifier (GSC), which can save an estimated 70% of benign patients from unnecessary thyroid surgery to rule out thyroid cancer;
• Initiated access to the Afirma genomic classifier through Quest/AmeriPath division’s extensive network of service providers; and
• Accepted our first commercial orders for the Percepta genomic classifier, which aids in the screening and diagnosis of lung cancer.

Reimbursement Progress:

• Received Anthem and additional Blues coverage for our Afirma classifier, which is now one of the few genomic assays to attain coverage by virtually all health plans in the U.S.; and
• Signed five new contracts through Regence Blue Cross and Blue Cross of Kansas, bringing the total contracted lives for our Afirma classifier to approximately 163 million.

Clinical Evidence Development: