On July 30, 2020 Veracyte, Inc. (Nasdaq: VCYT) reported financial results for the second quarter ended June 30, 2020 and provided an update on recent business progress (Press release, Veracyte, JUL 30, 2020, View Source [SID1234562574]).
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"We delivered solid second quarter results in the face of headwinds from the COVID-19 pandemic," said Bonnie Anderson, Veracyte’s chairman and chief executive officer. "Our genomic testing volume doubled between April and June as hospitals started performing more non-emergency procedures and physician practices began to open. We have begun leveraging opportunities for new virtual sales and marketing models to increase efficiency and drive growth. We also remain on track to bring four new tests to market in 2021, further accelerating our growth. Additionally, we continued to grow our biopharmaceutical and diagnostic partnerships to fuel our global expansion with a comprehensive test menu that extends our total addressable market beyond the $40 billion for our current and pipeline products."
Second Quarter 2020 Financial Results
For the second quarter of 2020:
Total revenue was $20.7 million, comprising $16.9 million in testing and product revenue and $3.8 million in biopharmaceutical partnership and collaboration revenue;
Gross Margin was 63%;
Operating Expenses, Excluding Cost of Revenue, were $24.1 million;
Net Loss and Comprehensive Loss was $11.0 million;
Basic and Diluted Net Loss Per Common Share was $0.22;
Net Cash Used in Operating Activities was $8.4 million; and
Cash and Cash Equivalents were $147.5 million at June 30, 2020.
For the six-month period ended June 30, 2020:
Total revenue was $51.8 million, comprising $47.3 million in testing and product revenue and $4.5 million in biopharmaceutical partnership and collaboration revenue;
Gross Margin was 62%;
Operating Expenses, Excluding Cost of Revenue, were $55.2 million;
Net Loss and Comprehensive Loss was $22.7 million;
Basic and Diluted Net Loss Per Common Share was $0.45; and
Net Cash Used in Operating Activities was $13.7 million.
Second Quarter 2020 and Recent Business Highlights
Core Diagnostics Business:
Increased our reported genomic testing volume (Afirma, Percepta and Envisia), with June total volume doubling that of April.
Expanded virtual customer engagement program, conducting more than two dozen virtual educational events, email campaigns and other digital outreach to clinicians.
Strengthened our library of published clinical evidence supporting use of the Afirma Xpression Atlas (Cancer Cytopathology) and the Envisia Genomic Classifier (CHEST and AJRCCM). The AJRCCM study further demonstrates the Envisia classifier’s ability to improve diagnosis of idiopathic pulmonary fibrosis without the need for surgery.
LymphMark – Submitted De Novo classification request to the FDA for the lymphoma subtyping test, which is designed to help inform diagnosis and better treatment decisions.
On track to launch four new products in 2021: Nasal swab test for early lung cancer detection; Percepta Atlas to inform treatment decisions in lung cancer; Envisia international launch on the nCounter; and LymphMark, if the FDA grants our De Novo classification request.
Signed distributor contracts that will make Veracyte’s advanced genomic testing on the nCounter system available to laboratories throughout the Asia Pacific region, as well as in Australia and New Zealand.
Strategic Collaborations:
CareDx – Formed strategic collaboration through which CareDx has the exclusive right to develop solid organ transplant rejection tests on the nCounter Analysis System, fueling our global menu expansion.
Generated revenue from four biopharmaceutical and diagnostics partners: Eli Lilly/Loxo Oncology, Johnson & Johnson Innovation, Acerta Pharma and CareDx.
MAVIDx – Signed strategic agreement, taking an equity stake in MAVIDx, for the new company to develop COVID-19 and other infectious disease tests for ultra-high throughput testing on the nCounter system. A Harvard University report estimates the market will require 20 million tests per day in the United States alone.
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: View Source 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