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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2014	Aug. 01, 2014
Document and Entity Information
Entity Registrant Name	VERACYTE, INC.
Entity Central Index Key	0001384101
Document Type	10-Q
Document Period End Date	Jun. 30, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		21,487,855
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2

CONDENSED BALANCE SHEETS - USD ($)	Jun. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 57,998,000	$ 71,220,000
Accounts receivable, net of allowance of $112 and $107 as of June 30, 2014 and December 31, 2013	1,430,000	1,143,000
Supplies inventory	3,300,000	2,567,000
Prepaid expenses and other current assets	1,450,000	1,477,000
Total current assets	64,178,000	76,407,000
Property and equipment, net	3,312,000	2,952,000
Restricted cash	118,000	118,000
Other assets	142,000	153,000
Total assets	67,750,000	79,630,000
Current liabilities:
Accounts payable	8,539,000	5,294,000
Accrued liabilities	5,128,000	7,594,000
Deferred Genzyme co-promotion fee	2,500,000	2,500,000
Current portion of long-term debt	940,000
Total current liabilities	17,107,000	15,388,000
Long-term debt, net of current portion	4,031,000	4,899,000
Deferred rent, net of current portion	223,000	286,000
Deferred Genzyme co-promotion fee, net of current portion	1,364,000	2,614,000
Total liabilities	22,725,000	23,187,000
Commitments and contingencies (Note 5)
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively
Common stock, $0.001 par value; 125,000,000 shares authorized, 21,446,855 and 21,143,313 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively	21,000	21,000
Additional paid-in capital	143,982,000	142,071,000
Accumulated deficit	(98,978,000)	(85,649,000)
Total stockholders' equity	45,025,000	56,443,000
Total liabilities and stockholders' equity	$ 67,750,000	$ 79,630,000

CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013
CONDENSED BALANCE SHEETS
Accounts receivable, allowance (in dollars)	$ 112	$ 107
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	21,446,855	21,143,313
Common stock, shares outstanding	21,446,855	21,143,313
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Revenue	$ 8,677	$ 5,068	$ 16,153	$ 9,452
Operating expenses:
Cost of revenue	3,966	3,231	7,573	6,004
Research and development	2,243	1,902	4,369	3,912
Selling and marketing	5,101	2,615	9,437	5,318
General and administrative	3,928	2,737	7,910	5,528
Total operating expenses	15,238	10,485	29,289	20,762
Loss from operations	(6,561)	(5,417)	(13,136)	(11,310)
Interest expense	(113)	(5)	(224)	(5)
Other income (expense), net	19	(1,068)	31	(2,070)
Net loss and comprehensive loss	$ (6,655)	$ (6,490)	$ (13,329)	$ (13,385)
Net loss per common share, basic and diluted (in dollars per share)	$ (0.31)	$ (7.53)	$ (0.63)	$ (16.47)
Shares used to compute net loss per common share, basic and diluted (in shares)	21,237,196	861,839	21,193,014	812,703

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	Jun. 30, 2014	Jun. 30, 2013
Operating activities
Net loss	$ (13,329)	$ (13,385)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	541	428
Bad debt expense	39	117
Genzyme co-promotion fee amortization	(1,250)	(1,250)
Stock-based compensation	1,367	489
Amortization of debt discount and issuance costs	54	2
Interest on debt balloon payment	40
Change in value of preferred stock liability		2,070
Changes in operating assets and liabilities:
Accounts receivable	(326)	(539)
Supplies inventory	(733)	280
Prepaid expenses and current other assets	93	(646)
Other assets	(11)	28
Accounts payable	3,377	35
Accrued liabilities and deferred rent	(2,526)	1,748
Net cash used in operating activities	(12,664)	(10,623)
Investing activities
Purchases of property and equipment	(904)	(941)
Change in restricted cash		50
Net cash used in investing activities	(904)	(891)
Financing activities
Proceeds from the issuance of long-term debt, net of debt issuance costs		4,877
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs		12,998
Commissions and issuance costs relating to the initial public offering	(129)
Proceeds from the exercise of common stock options	475	320
Net cash provided by financing activities	346	18,195
Net increase (decrease) in cash and cash equivalents	(13,222)	6,681
Cash and cash equivalents at beginning of period	71,220	14,002
Cash and cash equivalents at end of period	$ 57,998	$ 20,683

Organization and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2014

Organization and Summary of Significant Accounting Policies

Organization and Summary of Significant Accounting Policies

1. Organization and Summary of Significant Accounting Policies

Veracyte, Inc. (the “Company”) was incorporated in the state of Delaware on August 15, 2006 as Calderome, Inc. Calderome operated as an incubator until early 2008. On March 4, 2008, the Company changed its name to Veracyte, Inc. Veracyte is a diagnostics company pioneering the field of molecular cytology to improve patient outcomes and lower healthcare costs. The Company specifically targets diseases that often require invasive procedures for an accurate diagnosis — diseases where many healthy patients undergo costly interventions that ultimately prove unnecessary. The Company improves the accuracy of diagnosis at an earlier stage of patient care by deriving clinically actionable genomic information from cytology samples collected in an outpatient setting. The Company’s first commercial solution, the Afirma® Thyroid FNA Analysis, includes as its centerpiece the Gene Expression Classifier (“GEC”). The GEC helps physicians reduce the number of unnecessary surgeries by employing a proprietary 142-gene signature to preoperatively determine whether thyroid nodules previously classified by cytopathology as indeterminate can be reclassified as benign. The Company’s operations are based in South San Francisco, California and Austin, Texas, and it operates in one segment in the United States.

Basis of Presentation

The accompanying interim period condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the SEC regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed balance sheet as of June 30, 2014, and the condensed statements of operations and comprehensive loss and cash flows for the three and six months ended June 30, 2014 and 2013, are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of its financial position, operating results and cash flows for the periods presented. The condensed balance sheet at December 31, 2013 has been derived from audited financial statements. The results for the three and six months ended June 30, 2014 are not necessarily indicative of the results expected for the full fiscal year or any other period.

The accompanying interim period condensed financial statements and related financial information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

Use of Estimates

The preparation of the unaudited interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates include: revenue recognition; contractual allowances; allowance for doubtful accounts; the useful lives of property and equipment; the recoverability of long-lived assets; the determination of fair value of the Company’s common stock prior to the Company’s initial public offering (“IPO”), stock options, preferred stock liability; income tax uncertainties, including a valuation allowance for deferred tax assets; and contingencies. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenue and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and assumptions.

Concentrations of Credit Risk and Other Risks and Uncertainties

The Company’s cash and cash equivalents are deposited with one major financial institution in the United States of America. Deposits in this institution may exceed the amount of insurance provided on such deposits. The Company has not experienced any losses on its deposits of cash and cash equivalents.

Several of the components of the Company’s sample collection kit and test reagents are obtained from single-source suppliers. If these single-source suppliers fail to satisfy the Company’s requirements on a timely basis, it could suffer delays in being able to deliver its diagnostic solution, a possible loss of revenue, or incur higher costs, any of which could adversely affect its operating results.

The Company is also subject to credit risk from its accounts receivable related to its sales of Afirma. The Company generally does not perform evaluations of customers’ financial condition and generally does not require collateral. All of the Company’s accounts receivables are derived from sales of Afirma in the United States and Canada.

Through June 30, 2014, all of the Company’s revenues are derived from the sale of Afirma. The Company’s solution to date has been delivered primarily to physicians in the United States. The Company’s significant third-party payers and their related revenue as a percentage of total revenue are as follows:

	Six Months Ended June 30,
	2014		2013
Medicare	28	%	35	%
Aetna	11	%	7	%
United Healthcare	16	%	14	%
	55	%	56	%

Accounts receivable from Medicare amounted to 81% and 78% of accounts receivable as of June 30, 2014 and December 31, 2013. No other third-party payer represented more than 10% of the Company’s accounts receivable balances for these periods.

Cash and Cash Equivalents

Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less from the date of purchase. Cash equivalents consist primarily of amounts invested in money market accounts.

Restricted Cash

Deposits of $118,000 as of June 30, 2014 and December 31, 2013, were restricted from withdrawal and held by a bank in the form of collateral for letters of credit. The balance for each respective period consists of a letter of credit totaling $118,000 held as security for the lease of the Company’s office space in South San Francisco, California.

Allowance for Doubtful Accounts

The Company estimates an allowance for doubtful accounts against its individual accounts receivable based on estimates of expected reimbursement consistent with historical payment experience in relation to the amounts billed. Bad debt expense is included in general and administrative expense on the Company’s statements of operations and comprehensive loss. Accounts receivable are written off against the allowance when there is other substantive evidence that the account will not be paid. If the financial condition of our customers deteriorates, resulting in an impairment of their ability to make payment, additional allowances may be required.

The balance of allowance for doubtful accounts as of June 30, 2014 and December 31, 2013, including charges to bad debt expense and write-offs, net of recoveries, was as follows:

	June 30, 2014			December 31, 2013
	(In thousands)
Beginning balance	$	107		$	222
Charged to expense	39			109
Write-offs, net of recoveries	(34		)	(224		)
Ending balance	$	112		$	107

Supplies Inventory

Supplies inventory consists of test reagents and other consumables used in the sample collection kits and in the GEC and are valued at the lower of cost or market value. Cost is determined using actual costs on a first-in, first-out basis.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally between three and five years. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the term of the lease. Maintenance and repairs are charged to expense as incurred, and improvements and betterments are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the balance sheet and any resulting gain or loss is reflected in the statements of operations and comprehensive loss in the period realized.

Internal-use Software

The Company capitalizes costs incurred in the application development stage to design and implement the software used in the tracking and reporting of laboratory activity. Costs incurred in the development of application software are capitalized and amortized over an estimated useful life of three years on a straight line basis. The total cost, accumulated depreciation and net book value was $607,000, $259,000 and $348,000, respectively, as of June 30, 2014, and was $482,000, $195,000 and $287,000, respectively, as of December 31, 2013, and are included in property and equipment in the Company’s condensed balance sheets. During the six months ended June 30, 2014 and 2013, the Company capitalized $125,000 and $166,000, respectively, of software development costs. Amortization expense totaled $32,000 and $64,000 in the three and six months ended June 30, 2014, respectively, and $22,000 and $38,000, in the three and six months ended June 30, 2013, respectively.

Long-lived Assets

The Company annually reviews long-lived assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss is recognized when the total of estimated future undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Impairment, if any, would be assessed using discounted cash flows or other appropriate measures of fair value. There were no impairments for the six months ended June 30, 2014 and 2013.

Bonus Accruals

The Company accrues for liabilities under discretionary employee and executive bonus plans. These estimated compensation liabilities are based on progress against corporate objectives approved by the Board of Directors, compensation levels of eligible individuals, and target bonus percentage levels. The Board of Directors and the Compensation Committee of the Board of Directors review and evaluate the performance against these objectives and ultimately determine what discretionary payments are made. As of June 30, 2014 and December 31, 2013, the Company accrued $400,000 and $1.1 million, respectively, for liabilities associated with these employee and executive bonus plans which are included in accrued liabilities in the Company’s condensed balance sheets.

Fair Value of Financial Instruments

The carrying amounts of certain financial instruments including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities.

Revenue Recognition

The Company’s revenue is generated from the provision of diagnostic services using the Afirma solution. The Company’s service is completed upon the delivery of test results to the prescribing physician which triggers the billing for the service. The Company recognizes revenue related to billings for Medicare and commercial carriers on an accrual basis, net of contractual adjustments, when there is an agreement or a predictable pattern of collectability. Until a contract or agreement has been negotiated with a commercial carrier or governmental program, the Afirma solution may or may not be covered by these entities’ existing reimbursement policies. In addition, patients do not enter into direct agreements with the Company that commit them to pay any portion of the cost of the tests in the event that their insurance declines to reimburse the Company.

For all services performed, the Company considers whether or not the following revenue recognition criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the fee is fixed or determinable; and collectability is reasonably assured.

Persuasive evidence of an arrangement exists and delivery is deemed to have occurred upon delivery of a patient report to the prescribing physician. The assessment of the fixed or determinable nature of the fees charged for diagnostic testing performed and the collectability of those fees require significant judgment by management. Management believes that these two criteria have been met when there is a contracted reimbursement rate and/or a predictable pattern of collectability with individual third-party payers and accordingly, recognizes revenue upon delivery of the patient report. Some patients have out-of-pocket costs for amounts not covered by their insurance carrier, and the Company may bill the patient directly for these amounts in the form of co-payments and co-insurance in accordance with their insurance carrier and health plans. Some payers may not cover the Company’s GEC as ordered by the prescribing physician under their reimbursement policies. The Company pursues reimbursement from such patients on a case-by-case basis.

In the absence of a contracted reimbursement coverage or a predictable pattern and history of collectability, the Company believes that the fee is fixed or determinable and collectability is reasonably assured only upon receipt of third-party payer notification of payment or when cash is received and, accordingly, recognizes revenue at that time.

Cost of Revenue

Cost of revenue is expensed as incurred and includes material and service costs, cytopathology testing services performed by a third-party pathology group, stock-based compensation expense, direct labor costs, equipment and infrastructure expenses associated with testing tissue samples, shipping charges to transport samples, and allocated overhead including rent, information technology, equipment depreciation and utilities.

Research and Development

Research and development costs are charged to operations as incurred. Research and development costs include, but are not limited to, payroll and personnel-related expenses, stock-based compensation expense, prototype materials, laboratory supplies, consulting costs, costs associated with setting up and conducting clinical studies at domestic and international sites, and allocated overhead including rent, information technology, equipment depreciation and utilities.

Income Taxes

The Company accounts for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.

The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. The Company’s assessment of an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized tax benefit is still appropriate. The recognition and measurement of tax benefits requires significant judgment. Judgments concerning the recognition and measurement of a tax benefit may change as new information becomes available.

Stock-based Compensation

Stock-based compensation expense for equity instruments issued to employees is measured based on the grant-date fair value of the awards. The fair value of each employee stock option is estimated on the date of grant using the Black-Scholes option-pricing model. The Company recognizes compensation costs on a straight-line basis for all employee stock based compensation awards that are expected to vest over the requisite service period of the awards, which is generally the awards’ vesting period. Forfeitures are required to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Equity instruments issued to non-employees are valued using the Black-Scholes option-pricing model and are subject to remeasurement as the underlying equity instruments vest.

Net Loss per Common Share

Basic net loss per common share is calculated by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury stock method. Potentially dilutive securities consisting of convertible preferred stock and options to purchase common stock are considered to be common stock equivalents and were excluded from the calculation of diluted net loss per common share because their effect would be anti-dilutive for all periods presented.

Recent Accounting Pronouncements

On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for the Company in the first quarter of fiscal 2017. The Company has not yet selected a transition method and is currently evaluating the potential effect of the updated standard on its financial statements.

In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). The amendments in this ASU provide guidance on the financial statements presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward with certain exceptions, in which case such an unrecognized tax benefit should be presented in the financial statements as a liability. The amendments in this ASU do not require new recurring disclosures and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company adopted this guidance during the first quarter of 2014 and such adoption did not have a material impact on the Company’s condensed financial statements.

Net Loss Per Common Share

6 Months Ended

Jun. 30, 2014

Net Loss Per Common Share

Net Loss Per Common Share

2. Net Loss Per Common Share

The following table presents the calculation of basic and diluted net loss per common share for the three and six months ended June 30, 2014 and 2013 (in thousands, except share and per share amounts):

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Net loss	$	(6,655	)	$	(6,490	)	$	(13,329	)	$	(13,385	)
Shares used to compute net loss per common share, basic and diluted	21,237,196			861,839			21,193,014			812,703
Net loss per common share, basic and diluted	$	(0.31	)	$	(7.53	)	$	(0.63	)	$	(16.47	)

The following outstanding shares of common stock equivalents have been excluded from diluted net loss per common share for the six months ended June 30, 2014 and 2013 because their inclusion would be anti-dilutive:

	Six Months Ended
	June 30, 2014	June 30, 2013
Shares of common stock issuable upon conversion of preferred stock	—	14,997,312
Shares of common stock subject to outstanding options	2,983,509	2,420,302
Warrants to purchase convertible preferred stock	—	24,801
Total shares of common stock equivalents	2,983,509	17,442,415

Accrued Liabilities

6 Months Ended

Jun. 30, 2014

Accrued Liabilities

Accrued Liabilities

3. Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	June 30, 2014		December 31, 2013
Accrued compensation expenses	$	1,522	$	1,962
Accrued Genzyme co-promotion fees	2,716		4,915
Accrued other	890		717
Accrued liabilities	$	5,128	$	7,594

Fair Value Measurements

6 Months Ended

Jun. 30, 2014

Fair Value Measurements

Fair Value Measurements

4. Fair Value Measurements

The Company records its financial assets and liabilities at fair value. The carrying amounts of certain financial instruments of the Company, including cash and cash equivalents, prepaid expenses and other current assets, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. The carrying value of debt approximates its fair value because the interest rate approximates market rates that the Company could obtain for debt with similar terms. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows:

Level I: Inputs which include quoted prices in active markets for identical assets and liabilities.

Level II: Inputs other than Level I that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level III: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The fair value of the Company’s financial assets, which consist only of money market funds, was $57.7 million and $70.0 million as of June 30, 2014 and December 31, 2013, respectively, and are Level I assets as described above.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies

Commitments and Contingencies

5. Commitments and Contingencies

Operating Leases

The Company leases its headquarters and South San Francisco laboratory facilities under a non-cancelable lease agreement that expires March 31, 2016. The Company provided security deposits in the form of irrevocable standby letters of credit secured with restricted cash deposits at the Company’s primary bank. The Company deposited $118,000 in restricted cash accounts as collateral for the lease which is included in restricted cash in the Company’s condensed balance sheets as of June 30, 2014 and December 31, 2013.

The Company leases laboratory space in Austin, Texas. The lease expires on July 31, 2018. The Company provided a cash security deposit of $75,000, which is included in other assets in the Company’s balance sheet as of June 30, 2014 and December 31, 2013.

Future minimum lease payments under non-cancelable operating leases as of June 30, 2014 are as follows (in thousands):

Year Ending December 31,	Amount
July through December 31, 2014	$	475
2015	989
2016	413
2017	222
2018	130
Total minimum lease payments	$	2,229

The Company recognizes rent expense on a straight-line basis over the non-cancelable lease period. Facilities rent expense was $213,000 and $228,000 for the three months ended June 30, 2014 and 2013, respectively, and $426,000 and $444,000 for the six months ended June 30, 2014 and 2013, respectively.

Volume Purchase Agreement

The Company had non-cancelable purchase obligations to contract manufacturers and suppliers for approximately $130,000 at June 30, 2014, all of which is estimated to be payable before December 31, 2014.

Contingencies

From time to time, the Company may be involved in legal proceedings arising in the ordinary course of business. The Company believes there is no litigation pending that could have, individually or in the aggregate, a material adverse effect on the financial position, results of operations or cash flows.

Debt	6 Months Ended
Debt	Jun. 30, 2014
Debt
Debt	6. Debt In June 2013, the Company entered into a loan and security agreement with a financial institution to fund its working capital and other general corporate needs. The agreement provided for term loans of up to $10.0 million in aggregate. The Company drew down $5.0 million in funds under the agreement in June 2013, and did not draw the remaining $5.0 million on or before the expiration date of March 31, 2014. The carrying value of the debt approximates its fair value because the interest rate approximates market rates that the Company could obtain for debt with similar terms. The Company’s long-term debt obligation is a Level III liability. Level III inputs include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. The Company is required to repay the outstanding principal in 30 equal installments beginning 18 months after the date of the borrowing and is due in full in June 2017. The loan bears interest at a rate of 6.06% per annum. The loan carries prepayment penalties of 2.25% and 1.5% for prepayment within one and two years, respectively, of the loan origination and 0.75% thereafter. As of June 30, 2014, the net debt obligation is $5.0 million, consisting of the $5.1 million borrowing and the unpaid accrued balloon payment obligation net of the $100,000 discount on the note, of which $940,000 is included in current liabilities and $4.1 million is included in long-term debt in the Company’s balance sheets. The obligation includes an end-of-term payment of $223,000, representing 4.45% of the total outstanding principal balance, which accretes over the life of the loan as interest expense. As a result of the debt discount and the end of term payment, the effective interest rate for the loan differs from the contractual rate. Total interest on the debt was $113,000 for the three months ended June 30, 2014, comprised of $76,000 of nominal interest and $37,000 in interest expense related to the amortization of the debt discount and accretion of the end of term payment, and $224,000 for the six months ended June 30, 2014, comprised of $152,000 of nominal interest and $72,000 in interest expense related to the amortization of the debt discount and accretion of the end of term payment. The Company’s obligations under the loan and security agreement are secured by a security interest in substantially all of its assets, excluding its intellectual property and certain other assets. The loan and security agreement contains customary conditions related to borrowing, events of default, and covenants, including covenants limiting the Company’s ability to dispose of assets, undergo a change in control, merge with or acquire other entities, incur debt, incur liens, pay dividends or other distributions to holders of its capital stock, repurchase stock and make investments, in each case subject to certain exceptions. The agreement also allows the lender to call the debt in the event there is a material adverse change in the Company’s business or financial condition. There are no financial covenants in the loan and security agreement.

Convertible Preferred Stock Warrant	6 Months Ended
Convertible Preferred Stock Warrant	Jun. 30, 2014
Convertible Preferred Stock Warrant
Convertible Preferred Stock Warrant	7. Convertible Preferred Stock Warrant In June 2013, in conjunction with the execution of the loan and security agreement, as discussed in Note 6, the Company issued to the lender a warrant to purchase up to 49,602 shares of Series C convertible preferred stock with an exercise price of $7.56 per share. Upon the draw down of the $5.0 million term loan, the related warrant became exercisable for 24,801 shares. In November 2013, in connection with the Company’s IPO, the warrant automatically became exercisable for 24,801 shares of common stock at an exercise price of $7.56 per share. The lender exercised the warrant with respect to 24,801 shares through a cashless exercise in March 2014 resulting in the issuance of 13,739 shares of the Company’s common stock.

Stockholders' Equity

6 Months Ended

Jun. 30, 2014

Stockholders' Equity

Stockholders' Equity

8. Stockholders’ Equity

Common Stock

The Company’s Restated Certificate of Incorporation authorizes the Company to issue 125,000,000 shares of common stock with a par value of $0.001 per share. The holder of each share of common stock shall have one vote for each share of stock. The common stockholders are also entitled to receive dividends whenever funds and assets are legally available and when declared by the Board of Directors, subject to the prior rights of holders of all series of convertible preferred stock outstanding. No dividends have been declared as of June 30, 2014.

As of June 30, 2014 and December 31, 2013, the Company had reserved shares of common stock for issuance as follows:

	June 30, 2014	December 31, 2013
Options issued and outstanding	2,983,509	2,359,287
Options available for grant under stock option plans	1,719,514	1,787,802
Common stock warrants issued and outstanding	—	24,801
Total	4,703,023	4,171,890

Preferred Stock

The Company’s Restated Certificate of Incorporation authorizes the Company to issue 5,000,000 shares of preferred stock with a par value of $0.001 per share. No shares were issued and outstanding at June 30, 2014 or December 31, 2013.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 505
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-Section 50
-Paragraph 4
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Subparagraph (SX 210.3-04)
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Stock Incentive Plans

6 Months Ended

Jun. 30, 2014

Stock Incentive Plans

Stock Incentive Plans

9. Stock Incentive Plans

The following table summarizes activity under the Company’s stock option plans (aggregate intrinsic value in thousands):

	Shares Available for Grant		Stock Options Outstanding		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Balance — December 31, 2013	1,787,802		2,359,287		$	3.07	7.84	$	26,964
Additional options authorized	845,732		—
Granted	(1,033,842	)	1,033,842		14.77
Canceled	119,822		(119,822	)	8.16
Exercised	—		(289,798	)	1.87
Balance — June 30, 2014	1,719,514		2,983,509		$	7.04	7.88	$	30,223
Options exercisable — June 30, 2014			1,823,787		$	3.06	7.21	$	25,643
Options vested and expected to vest — June 30, 2014			2,859,071		$	6.77	7.83	$	29,731

The aggregate intrinsic value was calculated as the difference between the exercise price of the options to purchase common stock and the fair market value of the Company’s common stock of $17.12 per share as of June 30, 2014.

Outstanding and exercisable stock options at June 30, 2014 are summarized as follows:

	Options Outstanding		Options Vested and Exercisable
Exercise Price	Number	Weighted-Average Remaining Contractual Life (in Years)	Number	Weighted-Average Remaining Contractual Life (in Years)
$0.08	102,750	4.15	102,750	4.15
$0.80	142,069	5.69	142,069	5.69
$2.36	346,830	6.32	335,863	6.33
$2.40	160,862	5.07	143,579	4.82
$2.68	560,100	7.76	517,036	7.75
$4.00	431,577	8.59	386,316	8.60
$6.04	196,004	8.97	162,424	8.96
$7.92	9,000	9.20	—	—
$12.12	39,625	9.26	33,750	9.26
$12.64-18.24	994,692	9.05	—	—
$0.08-18.24	2,983,509	7.88	1,823,787	7.21

The weighted-average fair value of stock options granted was $9.97 and $3.18 per share for the six months ended June 30, 2014 and 2013, respectively.

The weighted-average fair value of stock options vested was $2.89 and $2.10 per share for the six months ended June 30, 2014 and 2013, respectively. The aggregate estimated grant date fair value of employee options to purchase common stock vested during the six months ended June 30, 2014 and 2013 was $4.2 million and $1.6 million, respectively.

The weighted-average fair value of stock options exercised was $1.25 and $0.83 per share for the six months ended June 30, 2014 and 2013, respectively. The intrinsic value of stock options exercised was $2.8 million and $1.7 million for the six months ended June 30, 2014 and 2013, respectively.

Stock-based Compensation

The following table summarizes stock-based compensation expense related to stock options for the three and six months ended June 30, 2014 and 2013, and are included in the unaudited statements of operations and comprehensive loss as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Cost of revenue	$	14	$	9	$	23	$	13
Research and development	155		58		262		103
Selling and marketing	192		41		285		76
General and administrative	514		177		797		297
Total	$	875	$	285	$	1,367	$	489

As of June 30, 2014, the Company had $9.4 million of unrecognized compensation expense related to unvested stock options, which is expected to be recognized over an estimated weighted-average period of 3.3 years.

The estimated grant date fair value of employee stock options was calculated using the Black-Scholes option-pricing model, based on the following assumptions:

	Three Months Ended June 30,		Six Months Ended June 30,
	2014	2013	2014	2013
Weighted-average volatility	73.20-76.87%	80.42%	73.20-78.54%	80.42 – 81.41%
Weighted-average expected term (years)	5.50-6.08	6.08	5.50-6.08	5.0 - 6.08
Risk-free interest rate	1.66-2.00%	1.60%	1.66-2.00%	0.88 - 1.60%
Expected dividend yield	0%	0%	0%	0%

Stock-based compensation related to stock options granted to non-employees is recognized as the stock options are earned. The fair value of the stock options granted is calculated at each reporting date using the Black-Scholes option-pricing model with the following assumptions: expected life is equal to the remaining contractual term of the award as of the measurement date ranging from 8.44 years to 9.26 years as of June 30, 2014 and 8.22 years to 9.43 years as of June 30, 2013; risk free rate is based on the U.S. Treasury Constant Maturity rate with a term similar to the expected life of the option at the measurement date ranging from 2.32% to 2.43% as of June 30, 2014 and 2.19% to 2.41% as of June 30, 2013; expected dividend yield of 0%; and volatilities ranging from 75.11% to 75.48% as of June 30, 2014 and 79.01% to 79.58% as of June 30, 2013.

Genzyme Co-promotion Agreement

6 Months Ended

Jun. 30, 2014

Genzyme Co-promotion Agreement

Genzyme Co-promotion Agreement

10. Genzyme Co-promotion Agreement

In January 2012, the Company and Genzyme Corporation (“Genzyme”) executed a co-promotion agreement for the co-exclusive rights and license to promote and market the Company’s Afirma thyroid diagnostic solution in the United States and in 40 named countries. In exchange, the Company received a $10.0 million upfront co-promotion fee from Genzyme in February 2012. The Company may receive an additional $3.0 million in payments, $600,000 for each country outside of the United States in which the Company obtains marketing authorization and achieves a specified level of reimbursement, for up to five countries. Under the terms of the agreement, Genzyme will receive a percentage of cash receipts that the Company has received related to Afirma as co-promotion fees. The percentage was 50% in 2012, 40% from January 2013 through February 2014, and 32% beginning in March 2014 and thereafter. Genzyme will also spend up to $500,000 for qualifying clinical development activities in countries that require additional testing for approval. This obligation expires in July 2014. The agreement expires in January 2027 and either party may terminate the agreement at any time and with six months prior notice. The Company is amortizing the $10.0 million upfront co-promotion fee over a four-year period, which is management’s best estimate of the life of the agreement, in part because after that period either party may terminate the agreement without penalty. See Note 13 — Subsequent Events.

The Company incurred $2.7 million and $1.8 million in co-promotion expense in the three months ended June 30, 2014 and 2013, respectively, and $5.5 million and $3.7 million in the six months ended June 20, 2014 and 2013, respectively, which is included in selling and marketing expenses in the statements of operations and comprehensive loss. The Company’s outstanding obligation to Genzyme totaled $8.1 million and $6.7 million at June 30, 2014 and December 31, 2013, respectively. Of the $8.1 million obligation at June 30, 2014, $5.4 million is included in accounts payable and $2.7 million is included in accrued liabilities in the Company’s condensed balance sheets. Of the $6.7 million obligation at December 31, 2013, $1.8 million is included in accounts payable and $4.9 million is included in accrued liabilities in the Company’s condensed balance sheets.

The Company amortized $625,000 of the $10.0 million up-front co-promotion fee in each of the three months ended June 30, 2014 and 2013, and $1.3 million in each of the six months ended June 30, 2014 and 2013, which is reflected as a reduction to selling and marketing expenses in the statements of operations and comprehensive loss. The unamortized balance of the co-promotion fee is reflected on the Company’s condensed balance sheets as follows (in thousands):

	June 30, 2014		December 31, 2013
Current liabilities:
Deferred Genzyme co-promotion fee	$	2,500	$	2,500
Long-term liabilities:
Deferred Genzyme co-promotion fee, net of current portion	1,364		2,614
Total	$	3,864	$	5,114

Thyroid Cytology Partners	6 Months Ended
Thyroid Cytology Partners	Jun. 30, 2014
Thyroid Cytology Partners
Thyroid Cytology Partners	11. Thyroid Cytology Partners In 2010, the Company entered into an arrangement with Pathology Resource Consultants, P.A. (“PRC”) to set up and manage a specialized pathology practice to provide testing services to the Company. There is no direct monetary compensation from the Company to PRC as a result of this arrangement. The Company’s service agreement is with the specialized pathology practice, Thyroid Cytopathology Partners (“TCP”), and is effective through December 31, 2015, unless terminated earlier, and renews annually thereafter. Under the service agreement, Veracyte pays TCP based on a fixed price per test schedule, which is reviewed periodically for changes in market pricing. Subsequent to December 2012, an amendment to the service agreement allows TCP to use a portion of Veracyte’s facility in Austin, Texas. The Company does not have an ownership interest in or provide any form of financial or other support to TCP. The Company has concluded that TCP represents a variable interest entity and that the Company is not the primary beneficiary as it does not have the ability to direct the activities that most significantly impact TCP’s economic performance. Therefore, the Company does not consolidate TCP. All amounts paid to TCP under the service agreement are expensed as incurred and included in cost of revenue in the statements of operations and comprehensive loss. The Company incurred $966,000 and $806,000 in cytopathology testing and evaluation services expenses with TCP in the three months ended June 30, 2014 and 2013, respectively, and $1.9 million and $1.5 million in the six months ended June 30, 2014 and 2013, respectively. The Company’s outstanding obligations to TCP for cytopathology testing services were $653,000 and $588,000 as of June 30, 2014 and December 31, 2013, respectively, and are included in accounts payable in the Company’s condensed balance sheets. TCP reimburses the Company for a proportionate share of the Company’s rent and related operating expense costs for the leased facility. TCP’s portion of rent and related operating expense costs for the shared space at the Austin, Texas facility was $21,000 and $41,000 for the three and six months ended June 30, 2014, and is included in other income in the Company’s statements of operations and comprehensive loss.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2014
Income Taxes
Income Taxes	12. Income Taxes The Company did not record a provision or benefit for income taxes during the three and six months ended June 30, 2014 and 2013, respectively. The Company continues to maintain a valuation allowance for its U.S. federal and state deferred tax assets. On January 2, 2013, The American Taxpayer Relief Act of 2012 (“ATRA”) was signed into law. Under prior law, a taxpayer was entitled to a research tax credit for qualifying amounts incurred through December 31, 2011. The ATRA extends the research credit for two years for qualified research expenditures incurred through the end of 2013. The extension of the research credit is retroactive and includes amounts incurred after 2011. At June 30, 2014, the Company had $0.8 million of unrecognized tax benefit, none of which, if recognized, would affect the effective tax rate as most of the unrecognized tax benefit is deferred tax assets currently offset by a valuation allowance. The Company has not recognized any interest and penalties related to uncertain tax positions as part of the income tax provision. The Company files annual income tax returns in the United States only. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome. The Company adjusts these reserves, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. As of June 30, 2014, changes to the Company’s uncertain tax positions in the next twelve months that are reasonably possible are not expected to have a significant impact on the Company’s financial position or results of operations.

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2014
Subsequent Events
Subsequent Events	13. Subsequent Events Genzyme Co-promotion Agreement On August 12, 2014, the Company signed a binding Letter of Agreement with Genzyme to amend the co-promotion agreement. Under the amendment, the co-promotion fees Genzyme would receive as a percentage of U.S. cash receipts would be reduced from 32% to 15% beginning January 1, 2015, and the earliest either party could terminate the agreement for convenience would be June 30, 2016.

Organization and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2014

Organization and Summary of Significant Accounting Policies

Basis of Presentation

Use of Estimates

Concentrations of Credit Risk and Other Risks and Uncertainties

	Six Months Ended June 30,
	2014		2013
Medicare	28	%	35	%
Aetna	11	%	7	%
United Healthcare	16	%	14	%
	55	%	56	%

Cash and Cash Equivalents

Restricted Cash

Allowance for Doubtful Accounts

The balance of allowance for doubtful accounts as of June 30, 2014 and December 31, 2013, including charges to bad debt expense and write-offs, net of recoveries, was as follows:

	June 30, 2014			December 31, 2013
	(In thousands)
Beginning balance	$	107		$	222
Charged to expense	39			109
Write-offs, net of recoveries	(34		)	(224		)
Ending balance	$	112		$	107

Supplies Inventory

Property and Equipment

Internal-use Software

Long-lived Assets

Bonus Accruals

Fair Value of Financial Instruments

Revenue Recognition

Cost of Revenue

Research and Development

Income Taxes

Stock-based Compensation

Equity instruments issued to non-employees are valued using the Black-Scholes option-pricing model and are subject to remeasurement as the underlying equity instruments vest.

Net Loss per Common Share

Recent Accounting Pronouncements

Organization and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2014

Organization and Summary of Significant Accounting Policies

Schedule of the Company's significant third-party payers and their related revenue as a percentage of total revenue

	Six Months Ended June 30,
	2014		2013
Medicare	28	%	35	%
Aetna	11	%	7	%
United Healthcare	16	%	14	%
	55	%	56	%

Schedule of balance of allowance for doubtful accounts, including charges to bad debt expense and write-offs, net of recoveries

	June 30, 2014			December 31, 2013
	(In thousands)
Beginning balance	$	107		$	222
Charged to expense	39			109
Write-offs, net of recoveries	(34		)	(224		)
Ending balance	$	112		$	107

Net Loss Per Common Share (Tables)

6 Months Ended

Jun. 30, 2014

Net Loss Per Common Share

Schedule of the calculation of basic and diluted net loss per common share

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Net loss	$	(6,655	)	$	(6,490	)	$	(13,329	)	$	(13,385	)
Shares used to compute net loss per common share, basic and diluted	21,237,196			861,839			21,193,014			812,703
Net loss per common share, basic and diluted	$	(0.31	)	$	(7.53	)	$	(0.63	)	$	(16.47	)

Schedule of outstanding shares of common stock equivalents that have been excluded from diluted net loss per common share

	Six Months Ended
	June 30, 2014	June 30, 2013
Shares of common stock issuable upon conversion of preferred stock	—	14,997,312
Shares of common stock subject to outstanding options	2,983,509	2,420,302
Warrants to purchase convertible preferred stock	—	24,801
Total shares of common stock equivalents	2,983,509	17,442,415

Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2014

Accrued Liabilities

Schedule of accrued liabilities

Accrued liabilities consist of the following (in thousands):

	June 30, 2014		December 31, 2013
Accrued compensation expenses	$	1,522	$	1,962
Accrued Genzyme co-promotion fees	2,716		4,915
Accrued other	890		717
Accrued liabilities	$	5,128	$	7,594

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies

Schedule of future minimum lease payments under non-cancelable operating leases

Future minimum lease payments under non-cancelable operating leases as of June 30, 2014 are as follows (in thousands):

Year Ending December 31,	Amount
July through December 31, 2014	$	475
2015	989
2016	413
2017	222
2018	130
Total minimum lease payments	$	2,229

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2014

Stockholders' Equity

Schedule of reserved shares of common stock for issuance

	June 30, 2014	December 31, 2013
Options issued and outstanding	2,983,509	2,359,287
Options available for grant under stock option plans	1,719,514	1,787,802
Common stock warrants issued and outstanding	—	24,801
Total	4,703,023	4,171,890

Stock Incentive Plans (Tables)

6 Months Ended

Jun. 30, 2014

Stock incentive plans

Summary of activity under the Company's stock option plans

The following table summarizes activity under the Company’s stock option plans (aggregate intrinsic value in thousands):

	Shares Available for Grant		Stock Options Outstanding		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Balance — December 31, 2013	1,787,802		2,359,287		$	3.07	7.84	$	26,964
Additional options authorized	845,732		—
Granted	(1,033,842	)	1,033,842		14.77
Canceled	119,822		(119,822	)	8.16
Exercised	—		(289,798	)	1.87
Balance — June 30, 2014	1,719,514		2,983,509		$	7.04	7.88	$	30,223
Options exercisable — June 30, 2014			1,823,787		$	3.06	7.21	$	25,643
Options vested and expected to vest — June 30, 2014			2,859,071		$	6.77	7.83	$	29,731

Summary of outstanding and exercisable stock options

	Options Outstanding		Options Vested and Exercisable
Exercise Price	Number	Weighted-Average Remaining Contractual Life (in Years)	Number	Weighted-Average Remaining Contractual Life (in Years)
$0.08	102,750	4.15	102,750	4.15
$0.80	142,069	5.69	142,069	5.69
$2.36	346,830	6.32	335,863	6.33
$2.40	160,862	5.07	143,579	4.82
$2.68	560,100	7.76	517,036	7.75
$4.00	431,577	8.59	386,316	8.60
$6.04	196,004	8.97	162,424	8.96
$7.92	9,000	9.20	—	—
$12.12	39,625	9.26	33,750	9.26
$12.64-18.24	994,692	9.05	—	—
$0.08-18.24	2,983,509	7.88	1,823,787	7.21

Schedule of assumptions used to calculate estimated grant date fair value of employee stock options using the Black-Scholes option-pricing valuation model

	Three Months Ended June 30,		Six Months Ended June 30,
	2014	2013	2014	2013
Weighted-average volatility	73.20-76.87%	80.42%	73.20-78.54%	80.42 – 81.41%
Weighted-average expected term (years)	5.50-6.08	6.08	5.50-6.08	5.0 - 6.08
Risk-free interest rate	1.66-2.00%	1.60%	1.66-2.00%	0.88 - 1.60%
Expected dividend yield	0%	0%	0%	0%

Employee and Non Employee Stock Option Excluding Bonus Compensation [Member]

Stock incentive plans

Summary of stock based compensation expense related to stock options

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Cost of revenue	$	14	$	9	$	23	$	13
Research and development	155		58		262		103
Selling and marketing	192		41		285		76
General and administrative	514		177		797		297
Total	$	875	$	285	$	1,367	$	489

Genzyme Co-promotion Agreement (Tables)

6 Months Ended

Jun. 30, 2014

Genzyme Co-promotion Agreement

Schedule of unamortized balance of the co-promotion fee reflected in the Company's condensed balance sheets

The unamortized balance of the co-promotion fee is reflected on the Company’s condensed balance sheets as follows (in thousands):

	June 30, 2014		December 31, 2013
Current liabilities:
Deferred Genzyme co-promotion fee	$	2,500	$	2,500
Long-term liabilities:
Deferred Genzyme co-promotion fee, net of current portion	1,364		2,614
Total	$	3,864	$	5,114

Organization and Summary of Significant Accounting Policies (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2014 USD ($) item segment	Jun. 30, 2013 USD ($)	Dec. 31, 2013 USD ($)
Organization and Summary of Significant Accounting Policies
Number of operating segments \| segment	1
Concentrations of Credit Risk and Other Risks and Uncertainties
Number of major financial institutions with which the company's cash and cash equivalents are deposited \| item	1
Restricted Cash
Deposits	$ 118,000		$ 118,000
Letter of credit serving as security for lease	118,000	$ 118,000	118,000
Activity of allowance for doubtful accounts
Beginning balance	107,000	222,000	222,000
Charged to expense	39,000	$ 117,000	109,000
Write-offs, net of recoveries	(34,000)		(224,000)
Ending balance	$ 112,000		$ 107,000
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member]
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	55.00%	56.00%
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member] \| Medicare [Member]
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	28.00%	35.00%
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member] \| Aetna [Member]
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	11.00%	7.00%
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member] \| United Healthcare [Member]
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	16.00%	14.00%
Accounts Receivable [Member] \| Credit Concentration Risk [Member] \| Medicare [Member]
Concentrations of Credit Risk and Other Risks and Uncertainties
Concentrations of credit risk (as a percent)	81.00%		78.00%

Organization and Summary of Significant Accounting Policies (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Capitalized Computer Software, Net [Abstract]
Net book value	$ 3,312,000		$ 3,312,000		$ 2,952,000
Minimum [Member]
Property and Equipment and Internal-use Software
Estimated useful life			3 years
Maximum [Member]
Property and Equipment and Internal-use Software
Estimated useful life			5 years
Software Development [Member]
Capitalized Computer Software, Net [Abstract]
Total cost	607,000		$ 607,000		482,000
Accumulated depreciation	259,000		259,000		195,000
Net book value	348,000		348,000		$ 287,000
Capitalized costs			125,000	$ 166,000
Amortization expense	$ 32,000	$ 22,000	$ 64,000	$ 38,000

Organization and Summary of Significant Accounting Policies (Details 3) - USD ($)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Long-lived Assets
Impairments	$ 0	$ 0
Bonus Accruals
Accrued liabilities associated with employee and executive bonus plans	$ 400,000		$ 1,100,000

Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Calculation of basic and diluted net loss per common share
Net loss	$ (6,655)	$ (6,490)	$ (13,329)	$ (13,385)
Shares used to compute net loss per common share, basic and diluted	21,237,196	861,839	21,193,014	812,703
Net loss per common share, basic and diluted (in dollars per share)	$ (0.31)	$ (7.53)	$ (0.63)	$ (16.47)
Outstanding shares of common stock equivalents that have been excluded from diluted net loss per common share
Total shares of common stock equivalents (in shares)			2,983,509	17,442,415
Convertible Preferred Stock [Member]
Outstanding shares of common stock equivalents that have been excluded from diluted net loss per common share
Total shares of common stock equivalents (in shares)				14,997,312
Employee and non Employee Stock Option [Member]
Outstanding shares of common stock equivalents that have been excluded from diluted net loss per common share
Total shares of common stock equivalents (in shares)			2,983,509	2,420,302
Common Stock Warrants [Member]
Outstanding shares of common stock equivalents that have been excluded from diluted net loss per common share
Total shares of common stock equivalents (in shares)				24,801

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2014	Dec. 31, 2013
Accrued Liabilities
Accrued compensation expenses	$ 1,522	$ 1,962
Accrued Genzyme co-promotion fees	2,716	4,915
Accrued other	890	717
Accrued liabilities	$ 5,128	$ 7,594

Fair Value Measurements (Details) - USD ($) $ in Millions	Jun. 30, 2014	Dec. 31, 2013
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member] \| Money Market Funds [Member]
Fair value measurements
Financial Assets	$ 57.7	$ 70.0

Commitments and Contingencies (Details) - USD ($)	3 Months Ended		6 Months Ended
Commitments and Contingencies (Details) - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Operating Leases
Restricted cash as collateral for lease	$ 118,000	$ 118,000	$ 118,000	$ 118,000	$ 118,000
Cash security deposit included in other assets	75,000		75,000		$ 75,000
Future minimum lease payments under non-cancelable operating leases
April through December 31, 2014	475,000		475,000
2015	989,000		989,000
2016	413,000		413,000
2017	222,000		222,000
2018	130,000		130,000
Total minimum lease payments	2,229,000		2,229,000
Facilities rent expense	213,000	$ 228,000	426,000	$ 444,000
Volume Purchase Agreement
Non-cancelable purchase obligations to contract manufacturers and suppliers	130,000		130,000
Estimated amount payable in 2014	$ 130,000		$ 130,000

Debt (Details)	3 Months Ended	6 Months Ended
Debt (Details)	Jun. 30, 2014 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2013 USD ($) installment	Mar. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Debt
Amount drawn down			$ 5,000,000
Net debt obligation included in current liabilities	$ 940,000	$ 940,000
Net debt obligation included in long-term debt	4,031,000	4,031,000			$ 4,899,000
Line of Credit [Member]
Debt
Maximum borrowing capacity			10,000,000
Term Loan One [Member]
Debt
Amount drawn down			$ 5,000,000
Amount not drawn				$ 5,000,000
Number of installments \| installment			30
Period after which debt is repayable			18 months
Interest rate (as a percent)			6.06%
Prepayment penalties for prepayment within one year of the loan origination (as a percent)			2.25%
Prepayment penalties for prepayment within two years of the loan origination (as a percent)			1.50%
Prepayment penalties for prepayment after two years of the loan origination (as a percent)			0.75%
Net debt obligation	5,000,000	5,000,000
Borrowing	5,100,000	5,100,000
Debt discount	100,000	100,000
Net debt obligation included in current liabilities	940,000	940,000
Net debt obligation included in long-term debt	4,100,000	4,100,000
Amount of end of term payment	223,000	$ 223,000
End of term payment as a percentage of total outstanding principal balance		4.45%
Interest on debt	113,000	$ 224,000
Nominal interest on debt excluding amortization of debt discount and accretion	76,000	152,000
Amortization of debt discount and accretion of end of term payment	$ 37,000	$ 72,000

Convertible Preferred Stock Warrant (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Mar. 31, 2014	Nov. 30, 2013	Jun. 30, 2013
Convertible preferred stock warrant
Amount drawn down of term loan			$ 5.0
Convertible Preferred Stock Warrants [Member]
Convertible preferred stock warrant
Number of shares of preferred stock that can be purchased by each warrant			49,602
Issuance of convertible preferred stock, issue price (in dollars per share)		$ 7.56	$ 7.56
Number of shares for which warrant became exercisable		24,801	24,801
Issuance of common stock on exercise of warrant (in shares)	13,739

Stockholders' Equity (Details)	6 Months Ended
Stockholders' Equity (Details)	Jun. 30, 2014 USD ($) item $ / shares shares	Dec. 31, 2013 $ / shares shares
Stockholders' Equity
Authorized shares of common stock	125,000,000	125,000,000
Par value of shares of common stock (in dollars per share) \| $ / shares	$ 0.001	$ 0.001
Number of votes for each share of stock \| item	1
Dividends declared \| $	$ 0
Common Stock
Options issued and outstanding (in shares)	2,983,509	2,359,287
Options available for grant under stock option plans (in shares)	1,719,514	1,787,802
Shares of common stock reserved for issuance	4,703,023	4,171,890
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Employee and non Employee Stock Option [Member]
Common Stock
Options issued and outstanding (in shares)	2,983,509	2,359,287
Options available for grant under stock option plans (in shares)	1,719,514	1,787,802
Common Stock Warrants [Member]
Common Stock
Common stock warrants issued and outstanding (in shares)		24,801

Stock Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Shares Available for Grant
Balance at the beginning of the period (in shares)	1,787,802
Additional options authorized (in shares)	845,732
Granted (in shares)	(1,033,842)
Canceled (in shares)	119,822
Balance at the end of the period (in shares)	1,719,514	1,787,802
Stock Options Outstanding
Balance at beginning of the period (in shares)	2,359,287
Granted (in shares)	1,033,842
Canceled (in shares)	(119,822)
Exercised (in shares)	(289,798)
Balance at the end of the period (in shares)	2,983,509	2,359,287
Options exercisable at the end of the period (in shares)	1,823,787
Options vested and expected to vest at the end of the period (in shares)	2,859,071
Weighted Average Exercise Price
Balance at beginning of the period (in dollars per share)	$ 3.07
Granted (in dollars per share)	14.77
Canceled (in dollars per share)	8.16
Exercised (in dollars per share)	1.87
Balance at the end of the period (in dollars per share)	7.04	$ 3.07
Options exercisable at the end of the period (in dollars per share)	3.06
Options vested and expected to vest at the end of the period (in dollars per share)	$ 6.77
Weighted Average Remaining Contractual Life
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	7 years 10 months 17 days	7 years 10 months 2 days
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	7 years 10 months 17 days	7 years 10 months 2 days
Options exercisable at the end of the period	7 years 2 months 16 days
Options vested and expected to vest at the end of the period	7 years 9 months 29 days
Aggregate Intrinsic Value
Balance at the beginning of the period (in dollars)	$ 26,964
Balance at the end of the period (in dollars)	30,223	$ 26,964
Options exercisable at the end of the period (in dollars)	25,643
Options vested and expected to vest at the end of the period (in dollars)	$ 29,731
Additional disclosures
Estimated fair value common stock (in dollars per share)	$ 17.12

Stock Incentive Plans (Details 2)	6 Months Ended
Stock Incentive Plans (Details 2)	Jun. 30, 2014 $ / shares shares
Exercise Price Dollars 0.08 [Member]
Outstanding and exercisable stock options
Exercise price (in dollars per share) \| $ / shares	$ 0.08
Options Outstanding, Number (in shares)	102,750
Options Outstanding, Weighted-Average Remaining Contractual Life	4 years 1 month 24 days
Options Vested and Exercisable, Number (in shares)	102,750
Options Vested and Exercisable, Weighted-Average Remaining Contractual Life	4 years 1 month 24 days
Exercise Price Dollars 0.80 [Member]
Outstanding and exercisable stock options
Exercise price (in dollars per share) \| $ / shares	$ 0.80
Options Outstanding, Number (in shares)	142,069
Options Outstanding, Weighted-Average Remaining Contractual Life	5 years 8 months 9 days
Options Vested and Exercisable, Number (in shares)	142,069
Options Vested and Exercisable, Weighted-Average Remaining Contractual Life	5 years 8 months 9 days
Exercise Price Dollars 2.36 [Member]
Outstanding and exercisable stock options
Exercise price (in dollars per share) \| $ / shares	$ 2.36
Options Outstanding, Number (in shares)	346,830
Options Outstanding, Weighted-Average Remaining Contractual Life	6 years 3 months 26 days
Options Vested and Exercisable, Number (in shares)	335,863
Options Vested and Exercisable, Weighted-Average Remaining Contractual Life	6 years 3 months 29 days
Exercise Price Dollars 2.40 [Member]
Outstanding and exercisable stock options
Exercise price (in dollars per share) \| $ / shares	$ 2.40
Options Outstanding, Number (in shares)	160,862
Options Outstanding, Weighted-Average Remaining Contractual Life	5 years 26 days
Options Vested and Exercisable, Number (in shares)	143,579
Options Vested and Exercisable, Weighted-Average Remaining Contractual Life	4 years 9 months 26 days
Exercise Price Dollars 2.68 [Member]
Outstanding and exercisable stock options
Exercise price (in dollars per share) \| $ / shares	$ 2.68
Options Outstanding, Number (in shares)	560,100
Options Outstanding, Weighted-Average Remaining Contractual Life	7 years 9 months 4 days
Options Vested and Exercisable, Number (in shares)	517,036
Options Vested and Exercisable, Weighted-Average Remaining Contractual Life	7 years 9 months
Exercise Price Dollars 4.00 [Member]
Outstanding and exercisable stock options
Exercise price (in dollars per share) \| $ / shares	$ 4.00
Options Outstanding, Number (in shares)	431,577
Options Outstanding, Weighted-Average Remaining Contractual Life	8 years 7 months 2 days
Options Vested and Exercisable, Number (in shares)	386,316
Options Vested and Exercisable, Weighted-Average Remaining Contractual Life	8 years 7 months 6 days
Exercise Price Dollars 6.04 [Member]
Outstanding and exercisable stock options
Exercise price (in dollars per share) \| $ / shares	$ 6.04
Options Outstanding, Number (in shares)	196,004
Options Outstanding, Weighted-Average Remaining Contractual Life	8 years 11 months 19 days
Options Vested and Exercisable, Number (in shares)	162,424
Options Vested and Exercisable, Weighted-Average Remaining Contractual Life	8 years 11 months 16 days
Exercise Price Dollars 7.92 [Member]
Outstanding and exercisable stock options
Exercise price (in dollars per share) \| $ / shares	$ 7.92
Options Outstanding, Number (in shares)	9,000
Options Outstanding, Weighted-Average Remaining Contractual Life	9 years 2 months 12 days
Exercise Price Dollars 12.12 [Member]
Outstanding and exercisable stock options
Exercise price (in dollars per share) \| $ / shares	$ 12.12
Options Outstanding, Number (in shares)	39,625
Options Outstanding, Weighted-Average Remaining Contractual Life	9 years 3 months 4 days
Options Vested and Exercisable, Number (in shares)	33,750
Options Vested and Exercisable, Weighted-Average Remaining Contractual Life	9 years 3 months 4 days
Exercise Price Range From Dollars12.64 To Dollars18.24 [Member]
Outstanding and exercisable stock options
Exercise price, low end of range (in dollars per share) \| $ / shares	$ 12.64
Exercise price, high end of range (in dollars per share) \| $ / shares	$ 18.24
Options Outstanding, Number (in shares)	994,692
Options Outstanding, Weighted-Average Remaining Contractual Life	9 years 18 days
Exercise Price Range from Dollars 0.08 to Dollars 18.24 [Member]
Outstanding and exercisable stock options
Exercise price, low end of range (in dollars per share) \| $ / shares	$ 0.08
Exercise price, high end of range (in dollars per share) \| $ / shares	$ 18.24
Options Outstanding, Number (in shares)	2,983,509
Options Outstanding, Weighted-Average Remaining Contractual Life	7 years 10 months 17 days
Options Vested and Exercisable, Number (in shares)	1,823,787
Options Vested and Exercisable, Weighted-Average Remaining Contractual Life	7 years 2 months 16 days

Stock Incentive Plans (Details 3) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Stock Incentive Plans
Weighted average fair value of stock options granted (in dollars per share)	$ 9.97	$ 3.18
Weighted average fair value of stock options vested (in dollars per share)	2.89	2.10
Stock incentive plans
Weighted average fair value of stock options exercised (in dollars per share)	$ 1.25	$ 0.83
Intrinsic value of stock options exercised (in dollars)	$ 2.8	$ 1.7
Employee Stock Option [Member]
Stock incentive plans
Aggregate estimated grant date fair value of options to purchase common stock vested (in dollars)	$ 4.2	$ 1.6

Stock Incentive Plans (Details 4) - Employee and Non Employee Stock Option Excluding Bonus Compensation [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Stock-based compensation
Share-based compensation expense (in dollars)	$ 875	$ 285	$ 1,367	$ 489
Unrecognized compensation expense (in dollars)	9,400		$ 9,400
Period over which unrecognized compensation expense expected to be recognized			3 years 3 months 18 days
Cost of Sales [Member]
Stock-based compensation
Share-based compensation expense (in dollars)	14	9	$ 23	13
Research and Development Expense [Member]
Stock-based compensation
Share-based compensation expense (in dollars)	155	58	262	103
Selling and Marketing Expense [Member]
Stock-based compensation
Share-based compensation expense (in dollars)	192	41	285	76
General and Administrative Expense [Member]
Stock-based compensation
Share-based compensation expense (in dollars)	$ 514	$ 177	$ 797	$ 297

Stock Incentive Plans (Details 5)	3 Months Ended		6 Months Ended
Stock Incentive Plans (Details 5)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Assumptions used to calculate estimated fair value of stock options using the Black-Scholes option-pricing valuation model
Contractual term			7 years 2 months 16 days
Employee Stock Option Excluding Bonus Compensation [Member]
Assumptions used to calculate estimated fair value of stock options using the Black-Scholes option-pricing valuation model
Weighted-average volatility, low end of range (as a percent)	73.20%		73.20%	80.42%
Weighted-average volatility, high end of range (as a percent)	76.87%		78.54%	81.41%
Expected volatility (as a percent)		80.42%
Weighted-average expected term		6 years 29 days
Risk-free interest rate, low end of range (as a percent)	1.66%		1.66%	0.88%
Risk-free interest rate, high end of range (as a percent)	2.00%		2.00%	1.60%
Risk-free interest rate (as a percent)		1.60%
Expected dividend yield (as a percent)	0.00%	0.00%	0.00%	0.00%
Employee Stock Option Excluding Bonus Compensation [Member] \| Minimum [Member]
Assumptions used to calculate estimated fair value of stock options using the Black-Scholes option-pricing valuation model
Weighted-average expected term	5 years 6 months		5 years 6 months	5 years
Employee Stock Option Excluding Bonus Compensation [Member] \| Maximum [Member]
Assumptions used to calculate estimated fair value of stock options using the Black-Scholes option-pricing valuation model
Weighted-average expected term	6 years 29 days		6 years 29 days	6 years 29 days
Non Employee Stock Option [Member]
Assumptions used to calculate estimated fair value of stock options using the Black-Scholes option-pricing valuation model
Weighted-average volatility, low end of range (as a percent)			75.11%	79.01%
Weighted-average volatility, high end of range (as a percent)			75.48%	79.58%
Risk-free interest rate, low end of range (as a percent)			2.32%	2.19%
Risk-free interest rate, high end of range (as a percent)			2.43%	2.41%
Expected dividend yield (as a percent)			0.00%	0.00%
Non Employee Stock Option [Member] \| Minimum [Member]
Assumptions used to calculate estimated fair value of stock options using the Black-Scholes option-pricing valuation model
Contractual term			8 years 5 months 9 days	8 years 2 months 19 days
Non Employee Stock Option [Member] \| Maximum [Member]
Assumptions used to calculate estimated fair value of stock options using the Black-Scholes option-pricing valuation model
Contractual term			9 years 3 months 4 days	9 years 5 months 5 days

Genzyme Co-promotion Agreement (Details)	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended	14 Months Ended
Genzyme Co-promotion Agreement (Details)	Mar. 31, 2014	Feb. 29, 2012 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2013 USD ($)	Jun. 30, 2014 USD ($) country	Jun. 30, 2013 USD ($)	Dec. 31, 2012	Feb. 28, 2014	Dec. 31, 2013 USD ($)	Jan. 31, 2012 country
Genzyme Co-promotion Agreement
Amortization of up-front co-promotion fee					$ 1,250,000	$ 1,250,000
Unamortized balance of the co-promotion fee
Deferred Genzyme co-promotion fee			$ 2,500,000		2,500,000				$ 2,500,000
Deferred Genzyme co-promotion fee, net of current portion			1,364,000		1,364,000				2,614,000
Collaborative Arrangement, Co-promotion [Member] \| Genzyme Corporation [Member]
Genzyme Co-promotion Agreement
Number of countries outside United States in which marketing authorization is obtained \| country										40
Co-promotion fee received from Genzyme		$ 10,000,000
Additional payments that may be received					3,000,000
Additional payments that may be received for each country outside of the United States in which the company obtains marketing authorization and achieves a specified level of reimbursement					$ 600,000
Prior notice period for termination of agreement					6 months
Amortization period of co-promotion fee					4 years
Co-promotion expenses			2,700,000	$ 1,800,000	$ 5,500,000	3,700,000
Outstanding obligation to Genzyme			8,100,000		8,100,000				6,700,000
Amortization of up-front co-promotion fee			625,000	$ 625,000	1,300,000	$ 1,300,000
Unamortized balance of the co-promotion fee
Deferred Genzyme co-promotion fee			2,500,000		2,500,000				2,500,000
Deferred Genzyme co-promotion fee, net of current portion			1,364,000		1,364,000				2,614,000
Total			3,864,000		3,864,000				5,114,000
Collaborative Arrangement, Co-promotion [Member] \| Genzyme Corporation [Member] \| Accounts Payable [Member]
Genzyme Co-promotion Agreement
Outstanding obligation to Genzyme			5,400,000		5,400,000				1,800,000
Collaborative Arrangement, Co-promotion [Member] \| Genzyme Corporation [Member] \| Accrued Liabilities [Member]
Genzyme Co-promotion Agreement
Outstanding obligation to Genzyme			$ 2,700,000		$ 2,700,000				$ 4,900,000
Collaborative Arrangement, Co-promotion [Member] \| Genzyme Corporation [Member] \| Maximum [Member]
Genzyme Co-promotion Agreement
Number of countries outside United States for which additional payments may be received \| country					5
Collaborative Arrangement, Co-promotion [Member] \| Genzyme Corporation [Member]
Genzyme Co-promotion Agreement
Percentage of cash receipts of co-promotion fees received by co-promoter							50.00%	40.00%
Percentage of cash receipts of co-promotion fees received by co-promoter for remaining periods	32.00%
Maximum amount to be spent by co-promoter for qualifying clinical development activities in countries that require additional testing					$ 500,000

Thyroid Cytology Partners (Details) - USD ($)	3 Months Ended		6 Months Ended
Thyroid Cytology Partners (Details) - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Thyroid Cytology Partners
Outstanding obligations	$ 8,539,000		$ 8,539,000		$ 5,294,000
Variable Interest Entity, Not Primary Beneficiary [Member]
Thyroid Cytology Partners
Expenses for cytopathology testing and evaluation services	966,000	$ 806,000	1,900,000	$ 1,500,000
Outstanding obligations	653,000		653,000		$ 588,000
Reimbursed rent expense included in other income	$ 21,000		$ 41,000

Income Taxes (Details) - USD ($) $ in Millions	Jan. 02, 2013	Jun. 30, 2014
Income Taxes
Period for which research tax credit extended for qualified research expenditures incurred through the end of 2013	2 years
Unrecognized tax benefit		$ 0.8
Unrecognized tax benefits, which if recognized, would affect the effective tax rate		$ 0.0

Subsequent Events (Details) - Collaborative Arrangement, Co-promotion [Member] - Genzyme Corporation [Member]		1 Months Ended
	Aug. 12, 2014	Mar. 31, 2014
Subsequent Events
Percentage of cash receipts of co-promotion fees received by co-promoter for remaining periods prior to amendment		32.00%
Subsequent Event [Member]
Subsequent Events
Percentage of cash receipts of co-promotion fees received by co-promoter beginning January 1, 2015	15.00%