Veracyte Announces First Quarter 2021 Financial Results

Rhea-AI Summary

Veracyte, Inc. (Nasdaq: VCYT) reported its financial results for Q1 2021, revealing total revenue of $36.7 million, an 18% increase year-over-year. The gross margin stood at 66%. Despite the revenue growth, the company faced a net loss of $41.9 million, primarily due to $35.1 million in acquisition-related expenses from Decipher Biosciences. Total genomic testing revenue increased 19%, reaching $36.1 million. The company anticipates the launch of innovative products, including the Percepta Nasal Swab test for lung cancer detection, later this year.

Positive

• Total revenue of $36.7 million, up 18% year-over-year.
• Gross margin at 66%.
• Total genomic testing revenue increased 19% to $36.1 million.
• Acquisition of Decipher Biosciences expands market reach into urologic cancers.
• Six abstracts for pulmonology and oncology products accepted at major conferences.

Negative

• Net loss of $41.9 million, including $35.1 million in acquisition costs.
• Operating expenses of $82.1 million, elevated by acquisition-related expenses.

Veracyte, Inc. (Nasdaq: VCYT) today announced financial results for the first quarter ended March 31, 2021, which were in line with its previously announced, preliminary first-quarter results. The company also provided an update on recent business progress.

“We delivered strong financial results for the first quarter of 2021, with particular momentum in March, as our business continues to emerge from the COVID-19 pandemic,” said Bonnie Anderson, chairman and chief executive officer of Veracyte. “On March 12, we completed our acquisition of Decipher Biosciences which, with its market-leading urologic cancer portfolio, expands our reach into 7 of the top 10 cancers in the U.S. and will accelerate revenue growth.

“Additionally, we are excited to unveil pivotal clinical validation data at ASCO for our Percepta Nasal Swab test for early lung cancer detection. We expect to launch it and the Percepta Genomic Atlas as part of our comprehensive lung cancer portfolio later this year. We also anticipate strengthening our global commercial footprint with the introduction of the Envisia classifier, for improved diagnosis of interstitial lung diseases, on the nCounter Analysis System by the end of this year.”

First Quarter 2021 Financial Results

For the three months ended March 31, 2021, compared to the prior year (Decipher Biosciences one-time acquisition-related expenses in the first quarter of 2021 increased our operating expenses, net loss and net cash used in operations by $35.1 million and our net loss per share by $0.55):

• Total Revenue was $36.7 million, including $3.8 million for urologic cancer testing, an increase of 18%;
• Gross Margin was 66%;
• Operating Expenses were $82.1 million. Operating Expenses, Excluding Cost of Revenue, were $69.7 million, including $35.1 million related to the acquisition of Decipher Biosciences;
• Net Loss and Comprehensive Loss was $41.9 million, including $35.1 million of expenses related to the acquisition of Decipher Biosciences;
• Basic and Diluted Net Loss Per Common Share was $0.66, including $0.55 per share attributable to the acquisition related expenses recorded in G&A;
• Net Cash Used in Operating Activities was $40.6 million; and
• Cash and Cash Equivalents were $324.1 million at March 31, 2021.

First Quarter 2021 and Recent Business Highlights

Commercial Growth:

• Total genomic testing and product revenue was $36.1 million, an increase of 19%, compared to the first quarter of 2020.
• Total genomic volume was 14,437 tests, an increase of 11%, compared to prior year, including 1,560 tests from Decipher Biosciences.
• Continue to expect a mid-year Medicare coverage decision for Decipher Bladder test, which will allow us to leverage our urology sales footprint to accelerate commercial adoption.
• Launched General Manager-based global structure, vertically aligning commercial teams within each clinical indication to provide enhanced focus and clinical expertise. Also added key new hires in marketing, managed care and international market access to support multiple new product launches and global expansion later this year.

Evidence Development and Pipeline Advancement:

• Six abstracts for our pulmonology products accepted as posters at the American Thoracic Society (ATS) 2021 International Conference this month:
  - Percepta Genomic Atlas – New data demonstrating the test’s ability to inform treatment decisions on the same sample used in diagnosis, in anticipation for product launch in Q4 2021.
  - Envisia – New data from five abstracts demonstrates the test’s clinical utility and our ability to enable the CLIA lab-based test on the nCounter Analysis System, in anticipation of the test’s international launch later this year.

• Six abstracts for our oncology tests accepted for the ASCO Annual Meeting in June, including:
  - Percepta Nasal Swab – Pivotal, multicenter, double-blind clinical validation data for test to enable early lung cancer detection, setting the stage for anticipated product launch in 2H 2021.
  - Decipher Prostate – Two abstracts, including an oral presentation showing test’s ability to identify African American men with higher likelihood of aggressive prostate cancer, will help further distinguish Decipher Prostate from other prostate cancer genomic tests.
  - Afirma XA – New data demonstrate the test’s ability to identify patients with gene alterations who may benefit from targeted therapies – at the time of diagnosis.

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FAQ

What were Veracyte's Q1 2021 earnings results?

Veracyte reported total revenue of $36.7 million, an 18% increase compared to the previous year.

What is Veracyte's net loss in Q1 2021?

The company reported a net loss of $41.9 million for the first quarter of 2021.

What major acquisition did Veracyte complete in Q1 2021?

Veracyte completed the acquisition of Decipher Biosciences on March 12, 2021.

What new products does Veracyte plan to launch in 2021?

Veracyte plans to launch the Percepta Nasal Swab test for lung cancer detection and the Envisia classifier for interstitial lung diseases.

How much cash did Veracyte have at the end of Q1 2021?

Veracyte had cash and cash equivalents of $324.1 million as of March 31, 2021.