Bay Area's Veracyte to Consolidate R&D Into One Department in Realignment
Veracyte, Inc. announced a strategic realignment that will include a consolidation of its research and development division as the company seeks to advance commercial growth of its three genomic tests used for oncological diagnostics.
As part of the strategic realignment, the company will consolidate its medical and research and development functions into one department. Veracyte said that move will “ensure a strong, consistent focus on addressing unmet customer needs and supporting the sales and marketing team.” The newly organized division will be helmed by the company’s chief scientific officer, Giulia C. Kennedy, who has held that position since the company was founded in 2008.
Not only has the company made changes to its R&D division, it is strengthening its sales division as well. The company expanded its sales team to 73 working in eight divisions. The divisions report directly to John Hanna, the company’s chief commercial officer, Veracyte said. In addition to the addition of sales specialists, Veracyte tapped Jessica Meng, formerly of Genentech, as its vice president of marketing. While at Genentech, Meng led the marketing for oncological blockbuster drug Avastin.
Bonnie Anderson, Veracyte’s chairman and chief executive officer, said the realignment comes at a time when the company has “market-leading and first-to-market tests” in three untapped clinical markets. Veracyte’s three genomic tests, Afirma, Percepta and Envicia, are used in clinical diagnostics for thyroid cancer, lung cancer and idiopathic pulmonary fibrosis respectively. Afirma and Percepta are used to improve the diagnosis of thyroid cancer and lung cancer without the need for invasive expensive surgery. Veracyte said it anticipates Envisia to be eligible for coverage by Medicare sometime this year.
“We believe these strategic realignments and new appointments will enable us to more actively manage the dynamics of our business and focus our investments to optimize these significant commercial opportunities,” Anderson said in a statement.
As part of the reorganization, Veracyte said it is reiterating its previous 2017 annual revenue guidance of $71 million to $72 million and its annual cash burn guidance of $25 million to $26 million. Veracyte expects fourth-quarter 2017 reported genomic test volume for Afirma and Percepta classifiers to be approximately 7,100 tests – a 12.5 percent increase compared to the fourth quarter of 2016. When the company announced its third quarter financial results in November 2017, Veracyte said genomic test volume increased by 14 percent, compared to the same period in 2016.