Veracyte Announces Fourth Quarter and Full-Year 2021 Financial Results

On February 28, 2022 Veracyte, Inc. (Nasdaq: VCYT) reported financial results for the fourth quarter and full year ended December 31, 2021 (Press release, Veracyte, FEB 28, 2022, View Source [SID1234609155]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

"Our business continued to perform well in the fourth quarter, despite facing unanticipated COVID-related headwinds," said Marc Stapley, Veracyte’s chief executive officer. "Moreover, 2021 was a pivotal year for Veracyte as we believe we put the major strategic pieces in place, including the acquisitions of Decipher and HalioDx, to position us to achieve our vision of becoming a global diagnostics leader. We look forward to building on this progress in 2022 with key milestones to support our near- and long-term growth."

Fourth Quarter 2021 Financial Results

For the fourth quarter of 2021, as compared with the fourth quarter of 2020:

Total Revenue was $67.3 million, an increase of 95%;
Operating Expenses, Excluding Cost of Revenue, were $56.8 million, an increase of 81%;
Net Loss was $10.5 million, an increase of 31%;
Basic and Diluted Net Loss Per Common Share was $0.15, an increase of 7%;
Net Cash Provided by Operating Activities was $8.4 million, an increase of $6.1 million; and
Cash and Cash Equivalents were $173.2 million at December 31, 2021.
For the year ended December 31, 2021, compared to the prior year:

Total Revenue was $219.5 million, an increase of 87%;
Operating Expenses, Excluding Cost of Revenue, were $227.0 million, an increase of 104%, including $47.2 million of acquisition-related expenses;
Net Loss was $75.6 million, an increase of 116%, including $47.2 million of acquisition-related expenses;
Basic and Diluted Net Loss Per Common Share was $1.11, an increase of 68%, including $0.70 per share attributable to acquisition-related expenses; and
Net Cash Used in Operating Activities was $31.6 million, including $43.6 million of acquisition-related expenses, compared to $9.7 million.
Key Business Highlights

Grew test volume to 22,300 in the fourth quarter and 78,565 in full-year 2021, increases of 70% and 77%, respectively, compared to the prior year.
Completed the acquisitions of Decipher Biosciences and HalioDx, positioning Veracyte to drive global expansion with a broad menu of high-performance tests.
Published clinical utility studies for the Afirma, Percepta and Envisia genomic classifiers in the Journal of the American Society of Cytopathology, BMC Pulmonary Medicine and AnnalsATS, respectively.
Broadened the clinical evidence for the Decipher Prostate Genomic Classifier including the presentation of data from a randomized Phase 3 trial at ASCO (Free ASCO Whitepaper) Genitourinary Symposium which demonstrated the test’s ability to guide therapy in men with intermediate-risk prostate cancer; received an expanded recommendation in 2022 National Comprehensive Cancer Network (NCCN) Clinical Practice Guidelines for Oncology, which uniquely predicates treatment decisions based on patients’ Decipher Prostate test scores.
Commercially launched the Decipher Bladder Genomic Classifier in November 2021 following a Medicare coverage policy and publication of strong clinical validation data in the Journal of Urology.
Began running the Percepta Nasal Swab test for improved early detection of lung cancer in Veracyte’s CLIA lab and returned results to the first patients as Veracyte began to assemble the clinical utility evidence to support future reimbursement and guideline inclusion.
Augmented and reorganized the leadership team to deliver on Veracyte’s global strategic vision.
2022 Financial Outlook

Veracyte is initiating 2022 annual total revenue guidance of $260 million to $275 million, representing year-over-year growth of 18% to 25%, compared to the prior year.

Conference Call and Webcast Details

Veracyte will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss the company’s financial results and provide a general business update. The conference call will be webcast live from the company’s website and will be available via the following link: https://protect-us.mimecast.com/s/IyUzCADA4pUjMMGcmQqy2. The webcast should be accessed 10 minutes prior to the conference call start time. A replay of the webcast will be available for one year following the conclusion of the live broadcast and will be accessible on the company’s website at View Source