false 0001384101 0001384101 2020-07-30 2020-07-30
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 2020
(Exact name of registrant as specified in its charter)
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6000 Shoreline Court, Suite 300, South San Francisco, California
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Item 2.02 Results of Operations and Financial Condition.
On July 30, 2020, Veracyte, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2020. The full text of the press release is furnished as Exhibit 99.1 to this report.
The information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
d) Exhibits
Exhibit No.
Cover Page Interactive Data File (embedded within the Inline XBRL document).

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
July 30, 2020
/s/ Keith Kennedy
Keith Kennedy
Chief Operating Officer and Chief Financial Officer
(Principal Financial Officer)

Exhibit 99.1



Veracyte Announces Second Quarter 2020 Financial Results


Revenue of $20.7 Million and Genomic Testing Volume of 5,379


Company Advances Pipeline and Global Expansion Strategy


Conference Call and Webcast Today at 4:30 p.m. ET




SOUTH SAN FRANCISCO, Calif., July 30, 2020-- Veracyte, Inc. (Nasdaq: VCYT) today announced financial results for the second quarter ended June 30, 2020 and provided an update on recent business progress.


“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: 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





The conference call can be accessed as follows:


U.S./Canada participant dial-in number (toll-free):

(855) 541-0980


International participant dial-in number:

(970) 315-0440


Conference I.D.:



About Veracyte

Veracyte (Nasdaq: VCYT) is a global genomic diagnostics company that improves patient care by providing answers to clinical questions, informing diagnosis and treatment decisions throughout the patient journey in cancer and other diseases. The company’s growing menu of genomic tests leverage advances in genomic science and technology, enabling patients to avoid risky, costly diagnostic procedures and quicken time to appropriate treatment. The company’s tests in thyroid cancer, lung cancer, breast cancer and idiopathic pulmonary fibrosis are available to patients and its lymphoma subtyping test is in development. With Veracyte’s exclusive global license to a best-in-class diagnostics instrument platform, the company is positioned to deliver its tests to patients worldwide. Veracyte is based in South San Francisco, California. For more information, please visit and follow the company on Twitter (@veracyte).


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 regarding Veracyte’s financial and operational results for the second quarter ended June 30, 2020, anticipated timing of the launch of new products in 2021, availability of Veracyte’s testing internationally, Veracyte’s total addressable market, the current and future impacts of COVID-19 on Veracyte’s business, actions Veracyte has taken in response to COVID-19, and Veracyte’s long-term outlook. Forward-looking statements are neither historical facts nor assurances of future performance, but are based only on our current beliefs, expectations and assumptions. These statements involve risks and uncertainties, which could cause actual results to differ materially from our predictions, and include, but are not limited to: the impact of COVID-19 on Veracyte’s business and operating results, specifically, and the healthcare system and economy more generally, Veracyte’s ability to achieve and maintain Medicare coverage for its tests; the benefits of Veracyte’s tests and the applicability of clinical results to actual outcomes; the laws and regulations applicable to Veracyte’s business, including potential regulation by the Food and Drug Administration or other regulatory bodies; Veracyte’s ability to successfully achieve and maintain adoption of and reimbursement for its products; the amount by which use of Veracyte’s products are able to reduce invasive procedures and misdiagnosis, and reduce healthcare costs; the occurrence and outcomes of clinical studies; and other risks set forth in Veracyte’s filings with the Securities and Exchange Commission, including the risks set forth in its quarterly report on Form 10-Q for the quarter ended June 30, 2020. These forward-looking statements speak only as of the date hereof and Veracyte specifically disclaims any obligation to update these forward-looking statements or reasons why actual results might differ, whether as a result of new information, future events or otherwise.


Veracyte, Afirma, Percepta, Envisia, Prosigna, LymphMark, and the Veracyte logo are trademarks of Veracyte, Inc.







(In thousands of dollars, except share and per share amounts)



Three Months Ended June 30,


Six Months Ended June 30,












Testing revenue

  $ 15,212     $ 26,686     $ 42,203     $ 52,075  

Product revenue

    1,713             5,122        

Biopharmaceutical revenue

    3,779       1,450       4,501       5,590  
Collaboration revenue           2,000             2,000  

Total revenue

    20,704       30,136       51,826       59,665  

Operating expenses:


Cost of testing revenue

    6,471       8,777       17,039       17,290  

Cost of product revenue

    932             2,491        

Cost of biopharmaceutical revenue

    252             368        

Research and development

    4,169       3,330       8,576       6,765  

Selling and marketing

    10,701       13,943       28,285       26,420  

General and administrative

    7,957       6,920       15,770       13,824  

Intangible asset amortization

    1,273       266       2,548       533  

Total operating expenses

    31,755       33,236       75,077       64,832  

Loss from operations

    (11,051 )     (3,100 )     (23,251 )     (5,167 )

Interest expense

    (65 )     (235 )     (120 )     (538 )

Other income, net

    91       841       630       1,294  

Net loss and comprehensive loss

  $ (11,025 )   $ (2,494 )   $ (22,741 )   $ (4,411 )

Net loss per common share, basic and diluted

  $ (0.22 )   $ (0.05 )   $ (0.45 )   $ (0.10 )

Shares used to compute net loss per common share, basic and diluted

    50,212,123       45,586,081       50,002,377       43,389,540  






(In thousands)



June 30, 2020


December 31, 2019

    (Unaudited)     (See Note 1)  



Current assets:


Cash and cash equivalents

  $ 147,450     $ 159,317  

Accounts receivable

    15,306       19,329  


    7,041       6,806  

Prepaid expenses and other current assets

    2,891       2,235  

Total current assets

    172,688       187,687  

Property and equipment, net

    8,640       8,933  

Right-of-use assets - operating lease

    8,339       8,808  

Finite-lived intangible assets, net

    62,471       65,019  


    2,725       2,725  

Restricted cash

    603       603  

Other assets

    1,271       1,437  

Total assets

  $ 256,737     $ 275,212  

Liabilities and Stockholders’ Equity


Current liabilities:


Accounts payable

  $ 2,224     $ 2,328  

Accrued liabilities

    9,386       13,734  

Current portion of operating lease liability

    1,495       1,407  

Total current liabilities

    13,105       17,469  

Long-term debt

    801       694  

Acquisition related contingent consideration

    5,948       6,088  

Operating lease liability, net of current portion

    10,736       11,506  

Total liabilities

    30,590       35,757  

Total stockholders’ equity

    226,147       239,455  

Total liabilities and stockholders’ equity

  $ 256,737     $ 275,212  



The condensed balance sheet at December 31, 2019 has been derived from the audited financial statements at that date included in the Company's Form 10-K filed with the Securities and Exchange Commission dated February 25, 2020.







(in thousands of dollars)



Six Months Ended June 30,






Operating activities


Net loss

  $ (22,741 )   $ (4,411 )
Adjustments to reconcile net loss to net cash used in operating activities:                

Depreciation and amortization

    3,929       1,869  

Gain on disposal of property and equipment

          (17 )

Stock-based compensation

    6,265       4,325  

Amortization of debt issuance costs


Interest on end-of-term debt obligations

    107       120  

Write-down of excess supplies


Noncash lease expense

    469       431  

Revaluation of acquisition related contingent consideration

    (140 )      
Changes in operating assets and liabilities:                

Accounts receivable

    4,023       (6,458 )


    (1,323 )     (1,702 )

Prepaid expenses and other current assets

    (664 )     (192 )

Operating lease liability

    (682 )     (604 )

Other assets

    166       25  

Accounts payable

    122       1,746  

Accrued liabilities

    (4,343 )     1,319  

Net cash used in operating activities

    (13,724 )     (3,466 )

Investing activities


Purchases of property and equipment

    (1,314 )     (1,424 )

Proceeds from disposal of property and equipment


Net cash used in investing activities

    (1,314 )     (1,407 )

Financing activities


Proceeds from the issuance of common stock in a public offering, net of issuance costs


Payment of long-term debt

          (24,900 )

Payment of financial lease liability

          (152 )

Payment of taxes on vested restricted stock units

    (2,678 )     (676 )

Proceeds from the exercise of common stock options and employee stock purchases

    5,849       7,405  

Net cash provided by financing activities

    3,171       119,525  

Net (decrease) increase in cash, cash equivalents and restricted cash

    (11,867 )     114,652  

Cash, cash equivalents and restricted cash at beginning of period

    159,920       78,598  

Cash, cash equivalents and restricted cash at end of period

  $ 148,053     $ 193,250  

Supplementary cash flow information of non-cash investing and financing activities:


Purchases of property and equipment included in accounts payable and accrued liability

  $     $ 72  

Interest paid on debt

  $ 3     $ 319  






(In thousands of dollars)



June 30, 2020


December 31, 2019


Cash and cash equivalents

  $ 147,450     $ 159,317  

Restricted cash

    603       603  

Total cash, cash equivalents and restricted cash

  $ 148,053     $ 159,920  




Investor and Media Contact:

Tracy Morris

Vice President of Corporate Communications

& Investor Relations