SOUTH SAN FRANCISCO, Calif.,
Oct. 17, 2016 /PRNewswire/
-- Veracyte, Inc. (NASDAQ: VCYT), a genomic diagnostics
company that reduces unnecessary surgeries and healthcare costs by
resolving diagnostic uncertainty, today released preliminary
unaudited financial results for the third quarter ended
September 30, 2016.
Third Quarter 2016 Preliminary Financial Results:
- Revenue for the third quarter of 2016 is expected to be
$18.6 million, an increase of 51%,
compared to $12.3 million for the
third quarter of 2015. This includes an estimated $3.5 million increase due to the accrual of tests
that would have previously been recognized upon cash receipt.
- Afirma® Gene Expression Classifier (GEC) test
volume was 5,740 tests, an increase of 14%, compared to the same
period in 2015.
- Operating expenses for the third quarter 2016 are estimated to
be $23.5 to $23.8 million, compared
to $21.2 million in the third quarter
of 2015 and $25.2 million in the
second quarter of 2016.
- Net loss is expected to be $5.6 to $5.9
million, or $0.20 to $0.21 per
common share, versus a net loss of $8.9
million, or $0.32 per common
share, for the same period in 2015.
- Cash and cash equivalents as of September 30, 2016 is expected to be $31.7 million, as compared with $39.0 million at June 30,
2016.
- Cash burn for the quarter is expected to be $7.3 million and includes $4.0 million in final payments to Sanofi Genzyme
under Veracyte's U.S. co-promotion agreement, which was terminated
in September 2016.
"Our strong preliminary financial results for the quarter
provide compelling evidence that our reimbursement strategy is
working," said Bonnie Anderson,
Veracyte's president and chief executive officer. "Specifically,
our significant success in securing payer contracts and
reimbursement for the Afirma GEC is resulting in faster, more
predictable payments. Our Afirma GEC test volume for the quarter
aligns with our expectations and reflects the seasonal cadence of
our business. Additionally, we have exercised significant financial
discipline while building out our sales and marketing team to drive
Afirma GEC growth and initiate commercial expansion of our
Percepta® Bronchial Genomic Classifier."
Veracyte's third quarter 2016 estimated results are preliminary
and subject to completion of its financial statements for the
quarter ended September 30, 2016 and
the review of those financial statements by the company's
independent registered public accounting firm. The company will
discuss 2016 full-year guidance on its third quarter conference
call.
Third Quarter 2016 Conference Call and Webcast
Veracyte's detailed third quarter 2016 financial results and
business review will be released after close of market on
Thursday, November 3, 2016 and the
company will host a conference call and webcast on the same day at
4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss the results
and business progress.
The live webcast and subsequent replay may be accessed by
visiting Veracyte's website at
http://investor.veracyte.com. Alternatively, please call (855)
541-0980 (U.S.) or (970) 315-0440 (international) to listen to the
conference call. The conference ID number is 94530436. The webcast
replay will be available on the company's website approximately two
hours following completion of the call and archived on the
company's website for 90 days.
About Veracyte
Veracyte (NASDAQ: VCYT) is
pioneering the field of molecular cytology, offering genomic
solutions that resolve diagnostic ambiguity and enable physicians
to make more informed treatment decisions at an early stage in
patient care. By improving preoperative diagnostic accuracy, the
company aims to help patients avoid unnecessary invasive procedures
while reducing healthcare costs. Veracyte's
Afirma® Thyroid FNA Analysis centers on the
proprietary Afirma Gene Expression Classifier (GEC) and is becoming
a new standard of care in thyroid nodule assessment. The Afirma
test is recommended in leading practice guidelines and is covered
for 185 million lives in the United
States, including through Medicare and many commercial
insurance plans. Veracyte is expanding its molecular
cytology franchise to other clinical areas, beginning with
difficult-to-diagnose lung diseases. In 2015, the company
launched the Percepta® Bronchial Genomic
Classifier, a test to evaluate patients with lung nodules that are
suspicious for cancer, which has already received draft Medicare
coverage. In the fourth quarter of 2016, Veracyte plans to
launch its second pulmonology product, the Envisia™ Genomic
Classifier, to improve diagnosis of interstitial lung diseases,
including idiopathic pulmonary fibrosis. For more information,
please visit www.veracyte.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as: "anticipate,"
"intend," "plan," "expect," "believe," "should," "may," "will" and
similar references to future periods. Examples of forward-looking
statements include, among others, statements with respect to the
company's preliminary third quarter 2016 financial results, our
reimbursement strategy and the results thereof, our belief that we
exercised financial discipline and our expectations with respect to
the timing of our commercial launch of Envisia and the benefits of
that test. Forward-looking statements are neither historical
facts nor assurances of future performance. Instead, they are based
only on our current beliefs, expectations and assumptions regarding
the future of our business, future plans and strategies,
anticipated events and trends, the economy and other future
conditions. Forward-looking statements involve risks and
uncertainties, which could cause actual results to differ
materially, and reported results should not be considered as an
indication of future performance. These risks and uncertainties
include, but are not limited to: the completion of our third
quarter 2016 financial statements and adjustments that may result
from that process, including auditor review; our ability to
continue to exercise financial discipline; difficulties or delays
commercializing Envisia; and the other risks set forth in the
company's filings with the Securities and Exchange Commission,
including the risks set forth in the company's Quarterly Report on
Form 10-Q for the quarter ended June 30, 2016. These
forward-looking statements speak only as of the date hereof
and Veracyte specifically disclaims any obligation to
update these forward-looking statements.
Veracyte, Afirma, Percepta, Envisia, the Veracyte logo, and the
Afirma logo are trademarks of Veracyte, Inc.
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SOURCE Veracyte