Veracyte (VCYT) 7 May 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Veracyte First Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Shayla Gorman, Senior Director, Investor Relations. Please go ahead.

thank our joining results. first and a today everyone, of discussion quarter afternoon, you us for for Good XXXX financial me Financial Stapley, Rebecca Marc today Executive With and Officer; Veracyte's Chambers, Officer. Chief Chief our are Veracyte first XXXX our afternoon quarter press issued financial release a this detailing earlier results. available website along at with is and Relations Investor financial business release, the section veracyte.com. This presentation, the in of our

statements statements I'd call that to that defined forward-looking we will make begin, remind like we securities various Before applicable this may during include laws. as under you

Forward-looking the statements correct. assurance prove uncertainties, are subject to be risks they company and and to no can give will

uncertainties We are results to could we our during Commission, on our the cause refer not updates differ, performance most documents Exchange the XX-K. and you with any including and under Forms the files quarter. provide Veracyte's understand that recent that further trends and Securities better Veracyte or to actual business To to obligation risks XX-Q the

this Marc call most directly In website. now the call financial in are of financial measures IR from of GAAP today's CEO. to section turn to will included Reconciliation will the non-GAAP addition, over Veracyte's release measures comparable Stapley, accessible these include Veracyte's I certain earnings the measures.

joining and thanks, Shayla, today. Thanks, everyone, us for

strong for market bioinformatic in Following our to the platform unique performance exceeding generation share durable start power testing Veracyte AI Diagnostics The compared Afirma year our XX% penetration. deep capabilities of combined relies our excellence, on-market genomic very I meaningfully positive care to a prostate our delivered that year. data, reimbursement powerful business, quarter to was the adoption commercial growing million, XX%, is ensure broad and by the designed XXXX, of with decisive very ultimately and revenue of to drives on momentum inclusion and this demonstrated with This grew which $XX.X prior period. strength guideline robust to am incredible again which we and driven a and excited of end a sets to evidence our This engine, and test have proven continued first clinical managed We approach the diagnostics. drive expectations.

quarter, record, first new growth both tests, new coming delivered Prostate existing hitting the a XX,XXX quarterly In Decipher with we and providers. volume from

the Our Decipher updated sales the rating, clinical of February, all highest for incredibly as to productive strong urology gene and continues as adoption test a published were associated of awareness Prostate drive rating evidence cancer. guidelines Xb through well utility representation. force expression with guideline tests Level receiving evidence, In NCCN prostate

for Prostate a a because NCCN updated treatment guidelines implications resource only trials how physicians score. this These the Additionally, separate can gene their for the to and on include Decipher classification proving expression both Decipher to of from classification, table risk clinical clear with provide that test which Decipher inform is based the their meaningful summarizes on be decisions. are test treatment patients summarized Prostate guidelines evidence

a with progress we made for Decipher signing offering an contract Prostate to the to in-network front, reimbursement close the significant million commercial major quarter, On a also XX payer members. in make its

physicians access this their We seamless efficiently enabling population more patient Decipher to care. to Prostate to are the their test, payer's thrilled obtain optimize treating see more

population. which challenging for Pinpointing missed could prostate aiding to of can treatment for trial of as interventions active while inclusion, among showed likely or and market. the critical undergoing outcome and potential is is a such significant JCO hormonal the a surgery, progress test active against prospective cancer tool multicenter them prognostic the cancer a this delay prostate data is portion is disease for II Decipher penetration whose cure. that from insights the patients significantly of progress. or candidates increased in mentioned Decipher give prostate the likely have treatments those radiation the the these surveillance, identify Phase therapy, surveillance risks Precision progression the for Providing weighed priority help drive for harms additional whose in like durable avoid to with remains that findings cancer, this Decipher those disease identifying us month, clinical in a awareness Decipher to previously, active These randomized reimbursement patients expression to for only Oncology evidence surveillance guideline publication Generating I Last can optimal further help important given physicians of to make further in gene underpenetrated decision opportunities help test market. to also the the

Afirma. quality test the compared of and approximately With published to differentiation, of to our growth evidence, results in our We reported due XX% test. previously illustrate Moving prior awareness the year, market to and share line XX,XXX Afirma, broadened gains demonstrating in continue our with revenue expectations. performance we resulting with

point been and around Afirma nodules the cancer. differentiation of the Another launch thyroid our to tool RUO of advance science designed has GRID,

in of This promoter also of March. the reinforcing requesting XX% addition Afirma the forms saw report clinical physicians offering, test with high quarter, of utility a positioning. our the we competitive on mutation The their thyroid order TERT in level GRID, of interest our test approximately enhances

Journal analytical received of in test Endocrinology publication of validity TERT coverage. data Medicare following the for Metabolism, the and quarter, testing This

physicians a total this the patients diagnosis. volume of limited cancer TERT is represents their portion making another yet Afirma thyroid facing small revenue and for of to indicator provide complete with most potential the we our are possible impact, strides While a offering

drive that and cancer continue and XX% to Prostate gain drivers believe the meaningfully ASPs. to towards grow as ahead for We growth our and coming to both we Decipher Afirma molecular years. continuing prostate market penetration while bolster over will share tests Looking thyroid

we to believe guidelines broaden will be awareness meaningful behavior. For updated NCCN physician change a Decipher, and the catalyst

section, across on utilized XX% classification and principles community of respondents group the Decipher which large were updated survey risk ]. update, of treatment and NCCN medical, and this of queried NCCN the score. urologists customer neurologic academic of as well surprisingly, XX% urology based [ a guidelines, of which voice Lodersettings the practice stratification respondents implications We Not recently details on the as aware conducted or oncologists and radiation

ordering of supplications trends result feedback, solidified. as period Decipher a as growth multiyear has a well our As on in in outlook the confidence been further survey over our

pivotal draft the benefit and patients prognostic final Medicare's Decipher annually patients year an In to there metastatic or that for coverage addition, determination, additional LCD, early become continue information XX,XXX or the later Cancer we are delivers of their We at Meanwhile, XXX,XXX in cancer for predictive the with Decipher clinicians important even more approximately their estimating XXXX, prostate will to estimate cases be next. cancer, cancer patients. anticipate prostate XXXX, local from who to the more could this American growth to making we see moments with in up from there Society of in new journey. unfortunately again continue incidents

the in clinicians genetic previously Afirma, changes patient beginning in are of addition of population. For we see utilizing for standard where long aren't care to dynamics highlighted, this tail and to a we who see market currently adoption rural testing areas, physician

LCD patients draft Bethesda expanding Additionally, on Afirma. X we can their to nodules also are cytology, who engaging cover from with to access MolDX with thyroid benefit the

turning Now to drivers. growth our longer-term

for testing. cancer global of recurrence more or strategy, minimal of disease solving care nasal and swab our platform, with through MRD serving And challenges through the acquisition journey Genomics IVD X our on vectors: We expansion CXi the residual utilization patient the our are new Percepta example, test. focused of through robust

we As continued often committed rationalize we do do CXi as our portfolio the our prioritization to areas. the and of investments X following outside during we quarter, these to acquisition, key

we As test. the result, our downsized Envisia support a for commercial

to important test patients longer to disease, While we a we facing interstitial no Envisia maintain those lung sales will force. will this continue separate offer

Now shifting on expansion. global to focus our

development clinical the utility and where from the reimbursement, product around data, U.S. activities clear once drive insights our Decipher built track developing tests Prosigna we with fuel will platform, IVD QPCR a utilizing and that with made continuing evidence test test based generate are Recall swab from still approach, go key outside by on adoption is Prostate our are We available, IVD test. we to This are already will our and country NGS. the leverage our to these country multi-platform we our on and clear market need and proof on Veracyte nasal Diagnostics strategy yet get of example the that the have to another strategy and

made NIGHTINGALE have sites. driver, nasal On we challenges have our trial across patients with via almost XXX our enrolling good swab, second new progress growth solving our cancer Percepta and

currently rigor study site excited endorsed enrollment While is and our high we cancer with faced patient interest of community, degree to the the test. potential enrollment the with pulmonology we the on nasal current believe physician remain expectations. tracking of date, We've is challenges the to of scientific progress by multisite rate clinical large and per below swab our trials a consistent and by updated market slower isn't about related designed typical

of of over our may modeling around the April indicative would not months. pace in the the may pace or enrollment and bars coming internal be wider of completion the [ continue year, While end accrual has ], this

will we nearing you next study update Given the completion. when that, is

is growth more patient driver of journey. Our last serving long-term the

invasive the the our that We integrated in cancer bladder for launch in first which test the excitement first XXXX. our of of lab, grown. to into for the only our technology half MRD Genomics team Veracyte, we muscle Now CXi has we have off potential clear kicked development intend

novel into solution mentioned ideal we throughout Diagnostics to genome whole fits journey. MRD Verify As us to the test last quarter, the it patient sequencing expand approach platform, making the for our well offerings CXi's

are and the the strong evidence begin of As and that seen to strength this build potential and present a of the technology to and collaborations partners clinical CXi from collaborators for continuing the many as with industry we initiated academia we interest approach, have test. testament

to in inbound market the and in since announcing our development the the are new platform potential. interest we have Between We momentum confident activities, received and the MRD and the strength of our extensibility our acquisition will we that, now for results the financial across XXXX. pivotal and this to time. believe be turn prove over acquisition a indications quarter for Veracyte for expectations review will Rebecca With to numerous I

Thanks, growth and XX% as impact, Marc. million of XX,XXX along volume by increase strong testing was increase XX% driven driven tests, of revenue, year an Afirma Total revenue testing Testing ASP was approximately volume we year-over-year, this ASP $X,XXX tests. $X of prior ASP out-of-period by resolved payments. XX,XXX would Decipher with and approximately $X,XXX. and contracting have increase collected approximately $XX.X same payer during over period. total volume, million prior collection. for was Testing the period a QX period year approximately $XX.X Adjusting to approximately in been the quarter to XX% million, a in the the was XXXX. We grew with an over start

We as the larger payer began now coverage some Decipher the see of from for benefit second half Prostate of of contract and in benefit place with to the over described Marc middle the of QX. a XXXX

to incremental this benefit ahead contract of testing forecasted ASP. the Looking to remainder is XXXX, now

million, product line with down our other quarter and tests, volume issues year-over-year was across impacted revenue Biopharmaceutical the overall supplier year-over-year was previously. X,XXX revenue was was Prosigna expectations spending product $X and industry. constraints by First XX% and demand given approximately $X.X X% in as seen down million,

Testing points approximately have the and demand. basis period other operating compared stock-based does to margin gross but expenses basis compensation. amortization acquisition-related margin footprint highlight XXX prior year invested meet to Non-GAAP and will increased we the margin exclude costs was Decipher non-GAAP our year as which period. equipment in to down routine XX expansion gross to assets, restructuring compared prior of intangible expenses. XX%, acquired the and include points gross was down results, Moving XX%, I

these Prosigna We full-scale margin with gross continues period driven cost the manufacturing. and X%, associated to by prior investments absorption. expect versus to start-up due lower XX%, leverage other Biopharmaceutical as to Product grow. margin volume was costs down year fixed was year-over-year down the

play to we half We the year. have to taken the out see second steps expect to business that this structure begin address of in of the cost

our of reported million million, included We up million. million. $XX.X loss $X.X given were study. Research revenue, NIGHTINGALE million the operating of to up at and $X.X acquisition clinical and by year-over-year $X.X million excluding development million personnel $X.X costs increased amortization stock-based to expenses, Non-GAAP CXi and declined by of acquisition-related Sales by $X.X additions due expenses marketing were driven and increased $X.X depreciation G&A $XX.X to X% cost net million, costs. $XX related and million to expenses to personnel higher $XX.X million a compensation, GAAP which million CXi of $X expenses. expenses of

As expected, and benefit we acquired of equivalents, cash including in million million the of approximately cash. used $XXX.X quarter $X cash million operations and $X the ended cash of of with

now outlook. Turning to XXXX our

excited million from to increase reflects of are guidance XX%. growth million. guidance of improved million to prior revenue to prior to to revenue $XXX to total We our XX% meaningful testing $XXX This our million outlook raise for $XXX XX% our to compared an the business as of $XXX guidance XX%, a with

raising cash end XXXX cash, $XXX with also expect between million investments. $XXX in are We to and guidance million cash and equivalents short-term to

to revenue, the decisions impact second given increase we Decipher quarter, of sequential Moving the on forecasting total a reimbursement typical and are seasonality ASP. in

profitability driving with in call. on strong Q&A growth sequential go into to our with start please continued QX open QX, roughly expect generation. and the commitment now a am year to We with thrilled in step up a and focus the Operator, We'll be I flat to of the lines. cash portion to the revenue revenue QX. our

comes Brackmann of Instructions] [Operator the Our you. Thank William first with from Blair. question line Andrew

Maybe or Obviously, there Decipher. first sort moving of you out there just rate a forward? incidence maybe growth versus bit? continued us sort wins sort we about market But for on tailwinds, little of which share growth talked script. How lot should parse you a the penetration can and in of of growth the here impact about thinking be nice

a for thanks it's great and Yes, question, that.

or XX% When the particular. in given, XX% drove ASP significant it of proportion revenue share you clear the I'd market and we've do diagnostics that look I year-over-year, you both growth molecular gains above. the a all think taking about at penetrating can in Decipher, of roughly then market, It's volume Decipher total a the the and volumes should on mean, for gaining share and numbers year-over-year. math grew being growing You of the there, we're pretty the of say, as overall rate

growing, So statements get if regarding to compare share. you you those that can market made how is just to the I

And obviously, only really driven I going about, which bit. XX,XXX volume studies that we've the year, adding a contract, come certainly this the that the talked little potential prepared from And Decipher. by it's forward, patients. about the in into support bolster remarks going then talked then guidelines of think, of course, lot high early we metastatic next later year, commercial another helps NCCN extremely And ASP of forward well a as things

penetration. see I So in we multiyear to anything trend think Decipher confident about molecular and both market continue a why total getting drive where the in our we're it, don't that that a all affects to ability this really we as the I place of diagnostic that's are great -- opportunity a patients for here likely saying market -- XX% hopefully, seeing that And we're to share growth given as Decipher and test. with see treated most market that

penetration QX so most be assumptions on in JPMorgan Andrew, our updating the the Absolutely. only call. to We to we'll recently annually. that The quickly, really thing add is did

think that's That other like take a and going exercise. -- does those through stuff that's are annually data some only And so disclosures. released and that triangulation I obviously

it's But quarter a challenging handily number to Marc quarterly concur last confidence of fabulous reasons. and those the over doing to our So here wholeheartedly, to over furthered go of is has I job have years. been team that do after to to and nothing the for but having only so update Decipher sales continue grow next end that white we space with the

I I as driving what maybe, you in here, of specific you of great be might bit may a sort just that a can about of on little the maybe that slowdown sort can just guess color. That's be formal enrollment? scenarios of then more on guess, of think you And into ahead NIGHTINGALE, outcomes And talk about maybe your channel level be? of investment whenever that readout, sort

all how how about of is we difficult problem trials we And and sign plethora really And affecting it's work there's to I'd how is to say situations bringing in Yes. particularly is patients are Thanks can of don't of the part within XXX is controlled Actually, done we've think you that very control, control trial after. much feel the how challenging for by enrollment pulmonology. What the go quickly the up very having enrolling. in. almost how specific And we because own but general, understand I process site. be that's much many I the of actively internal sites those it we good then it's their in there, question. clinical sites much a

trial us to science, want the is trial to Veracyte a more velocity of what's than that important way. right really sure we Now done robust course, that at important is the good and of priority a is and make enrollment,

limitations And are trial. the so that or the we customers the around have patients actually eligible for

every not you trial patient a sites. eligible slow at cause individual course, trial, have then And have of challenges And activity to so that and or resource factor. part you that Of wants increase who's be down. to can

makes difficult that to very predict. it And

not the as we'll to will everything said, that within and the when our that not can, would having of, and completed trial trying towards science again, year. the current to of a nearing will April trial but soon I of rate we're update bounds on the the But get the predict we're not us sure into But robust an based it's now you as that rate tell you to doing that suggesting only we point. get -- good can in rates that that I'm we take into I April, the get that the apply that not changed is process going trying end not forward, So we as that, outlier, saw make we to that finish. when to and April trying is --

said you -- regarding maybe remarks your the commercial just want to And level the about what we prepared talk excitement? commercial in of

mean -- view product the in yes, up We don't all. I slowdown -- sites the continues signal that's to There's excitement that I gives commercial lot think is And at with a does enthusiasm in of any from affect getting a is getting enrollment our those very clearly also to significant level think that see Certainly the answer market? saw at question opposite, the a than that of from I Yes. sites. other and and the the confidence signed interest the that comes real nothing addressing is, test the the is to give us this us of which point, that we the about XXX market and market. no. and

the change So market, the for our expectations market swab. nasal no in around ultimate

One moment next our for question.

question Nam with from Ji next comes Our Scotiabank. Sung

on might you of own quarter. be curious cancer. things the Congrats if plans or you're MRD running running Maybe partner on might to trials at invasive for internal your development I able trial? going the have of if was Or Just the looking your sense of have kind pursuing of kind do on or and you strategy given with there, it partnership you kind or own? you're strategy of competition wondering clinical be on biopharma that? trial partners bladder a out you like companies if how your if muscle to Curious is there there? if the for large kind comment some

the to the that first launching bladder getting muscle tests pathway cancers are of reimbursed. a Yes, we reasons great because we clear it market Actually, in our question. [ ] and it's on getting in bladder see a invasive X

an to able existing we're LCD. So leverage

development they're lab, core you program, going the that. it's kicked ingesting We've off very are through teams We as the can already and process. working on imagine, on, into hard that our test

the do reimbursement. do that assessment to to we tech will in need We order that to get

to will automation steps need scale. we within that We do the to our lab able to do be

able do work of samples we much that to demonstrate. to And the it number the within be necessary control. we so a tech our significant need have concordance for to to we The assessment see not is demonstrate very that

So in that's progress. already

get can opens a So get of confident this market is launched market, early very test yes, the reimbursed. indication important to an muscle we a It as it as time, where imagine, platform. said, single XX,XXX and And X we is was to while up about by not test. this path see potential bladder cancer the the our invasive It's in a ability and on which of XXXX earliest part the a patients. product, the you

think conditions to and indications MRD And determine after our platform. go so we excited with about next which we're and which

of now we've over expensive, approach just also taken, like we add beyond CXi and traction GRID, Afirma, will just us that, Ji. reasons X for the data Decipher us And liking will just was more us a well, that help think really Obviously, what the assessment. believe give that time, that thing just tech gain amount sequencing highlighted to whole allow Sung have commercial slightly the of acquisition like just evidence in to above is effectively has maybe with X Afirma the to in the genome body of clinical and will we the

a So obviously, we And I pull different MRD market. to compete think this really of levers large market. a in to is number have

after then tests the follow. super market first to our muscle we're so cancer, on to but go thereafter, bladder products get And indications to invasive excited and other

well, that's point. Yes. I great And think a

we to that get the that what to all the that able generate, data if Diagnostics the the that that. platform on now back that Veracyte we're incremental is to first way you we're look didn't wasn't to initially it been Just in that test at greatest the Decipher, add traction The and pieces call at market, the through have point together. able we've development Decipher where to evidence -- certainly

I competitive here. a opportunity plenty it's while space, so think of there's do And

green a your space. small others then biopharma, of but given curious, That's business of on just very part some kind in Got you. shoots see now, just super are starting helpful. obviously, that And to

as some kind this and there of GRID with you around Decipher of And next of Do they're lot things be later more for was a activity look to like Afirma as we traction, activities? could and for biopharma-related into gaining just for -- so think that. ahead year you wondering, I kind especially year,

I a said got soon. flourish. really see while those to those can I for for well. -- it mean, But shoots sure, green we've a It to said pipeline. before, pipeline have projects customers used time new I've we to this contract it longer to with be. a those new early is and from you think get to you green start indication than to take decision shoots The of projects.

And the so challenge taking time. that's is of part

I data And we're do in some, we MRD, to think of you're really particularly right platform. GRID, than to prostate interest point the more say, with green potentially for that MRD our shoots have to the on now see I'd side. actually starting

as I'm your very that I'm And should I'm some watching a time you around at when. a and and a frame side now we're point, by as can willing come the small exactly of and on the products. as declined, to to we and not to try to So and sure green that immunohistochemistry closely. imagine, these but clear But put fruition. the point, a side, capability scenario a of optimistic not shoots presence course, the biopharma supported a as is that. in both maintain rest revenue team other continue that the well grown, clear percentage has our has business

for moment next our question. One

Our with next Mason question comes from Carrico Stephens.

market. make But the material of X? then of realize types What's share year this higher majority for portion of patients the unpenetrated make that And market? patients up on question the opportunity? patients Maybe the to here? metastatic a type Are market, market the of between penetrated here. testing the up from there the I grow strategy cancer a XX% of level to the continue prostate the the make up portion of congrats expand or it. what on a solid to differences remainder What of so Rebecca, the start and

in this say, Yes. I you as mean expand far, active space. imagine. that We And at growth. well, particular, I'm penetration is to you well metastatic is to into potential the as the area By going an imagine. be in all the can can high, as can grow and intermediate I'd surveillance as in expand point, indications, mostly the of there's with sure opportunities

earlier. every So is to as that white outlier expansion I'd no particularly that for opportunities but further Rebecca area across of there's part space as -- an say well biopsy in referred

And had active Marc? really a want perhaps study surveillance, talk you just to important on published we about,

Decipher X/X when And under I having of start get XXX% and to evidence the particularly with how And going a we're I for clearly NCCN and can talks well that Yes. should which bit one. category, which be it avoid the in ascertain a to that to help And mean, the there. because, approach. with I that don't bunch the really is the you surveillance prepared aren't going more in think frankly, capability of as used mean those Mason, on table these the that don't to what's you diagnostic. across see patients mentioned being said Decipher, I space penetration there's how want I whole should or of prostate about now see obviously, behind reasons. surveillance in ever mean can active especially to that the to overtreat I right of be patients to should of molecular utilization think got I little change think believe for I score a on as course, Decipher apply guidelines a you inertia it. if as said to and of entire our the cancer strongly patients before, there, And not as you great goal, deal more demonstrated to molecular ultimately, risk we've well most spectrum you're Decipher see remarks, tests treatment times help the and active remarks, information Decipher many reclassify prognostic helping but that But as the not, we the I which patients. right how patients with is based important earlier

helpful. And academic on increased demand demand where offering, standpoint? most from setting it. GRID you the hospital now launched And or Got seeing higher a you traction the offering? the from Afirma That's seen any clinician are then that you've that have

driven years. lot I I interest there's as to from roughly purposes. yes, for seeing But research always the it's academic think outcome. physicians not for side whether on -- we're done GRID We're of the in setting also correlate interested feel to Decipher possible now XX% we've side penetration, we've all by on things seeing the around we're are coming like the good And the greater GRID seen Afirma Afirma seeing many GRID. not, and a of around especially or

it's GRID think actually TERT with including the things associated that. done, I all and the else the we've portal and everything of and collection

But a with think, adopted we're for tail penetration rural haven't of who me is the well, test that as Afirma. positive of molecular I because long out physicians it is, any in either test says seeing the X have better which challenges this or that to communities also a you sign getting like

there a good indication as we're And well. making so I really that think that's good traction

our for One next moment question.

Morgan with Our Tejas question from Savant next Stanley. comes

Afirma for or here perhaps quick you the things. Marc Rebecca, a on side X of

an have place? over time Medicare the reimbursement provide broadens what So coverage in to beyond as Afirma? to third ASP expect do CMS promoter the you frame there testing you uplift reimbursement, following out now Especially

it's $XXX, clinicians another have that's uplift, select test rate. only to reimbursed and provide finding XX% before Yes, with suspicious TJ, since run of have patients TERT then Effectively, not at being is to and about XX% ran, -- select going a to you meaningful sorry, a question. especially fair TERT to have actually I'm a it's have the

so patients. huge And and figures about of number talking an on perspective not you're ASP dollar a

about And it's drive so barrier think penetration it, more we specifically think so I less for an than when Afirma. X to uplift, ASP

ASP albeit still think I really Obviously, as that excited do than room work side, doing some huge, think the and care negotiating majority a of have job contract. have And contracting our on there the drive Afirma has go, coverage is more side news team good on the and today's very TERT and across managed -- importantly we're I we vast is fabulous uplifts we that to our well. have products. the did both Decipher been business

grow, TERT. behind there, they'll I payer So sized And today smaller, big impact. to but a nice us think be there's room is the probably including decently from today, with

just we I helping in to Afirma complete more have Rebecca. for is important It's our To physicians. punch one, because drive to TERT me, want it a have offering.

sake. driving driving it's Afirma. for revenue necessarily So TERT revenue's It's TERT not

the had angle, a my strategy, Got to go-forward And on already so CXi other of which fair. better perhaps but you've which data the X acquainted side? less get including that to monetize Marc, I'm then so on it. on is That's ways chance just earlier, now about some basis, reimbursement biopharma you from with. monetization And it, to question the alluded more a data, sure

Yes. for And that's -- always I monetizing data sake. There's about think we've that just talked before. data's challenge a with

the we testing. about I talk to we think the evidence drive testing. that way flywheel further really and to drives that research think the drive It further more continue drives is it data then supports about that

to in customer data, Now because perspective, you that from reaches that great out versus on amount capitalize is try to team interest data biopharma of course, to the drive success a of and there's have to funnel. that. go tremendous that And we, are because find a and you you projects build and what you the that extent of having the that have the those go typically, biopharma

I really And we're earlier, as as interest well. prostate particularly the interest. test, exciting on getting we're there on you the the -- whole that it's And imagine and getting fact so by genome, the performance of MRD what's can the we side, get driven said side, is

opportunities not to continue and monetization out it's At rest data. inbounds see what those fueling the fill come we'll I'd of where it's for But put that. of point, our of the on business. at a this so line the And point spreadsheet say

Fair sheet enough. on is And X me final shape. in M&A X just for The strategy. good balance

little a guide the here. You cash over bit took up year-end

CXi, is the asset clearly following technology. strategically Just important a

You talked broadening and time. out about indications to MIBC over other

a time, the right? Percepta delays delays take enrollment little contributions revenue the And that you've you the with bit that cited. you So then nasal will of -- NIGHTINGALE got swab

of, again much of and balance the what you remind the I landscape are us as just here And the your tuck-ins? sheet, how revenue So priorities sort for plays consider guess, a priority generation, you is year tuck-ins fair or into near-term to it as the may so? that the that in revenue focus a assume for bridge on in next here sense other do

when reiterate We've Thanks increase did of again around the no what pretty to last the next are those business there. we're guide cash There's said market to the want market we math products that which growth math, points when the We I and I And the the the only which I MRD. long-term And to on, that about to our did for clear here. outside obviously fuel over as as U.S. multiple question. drivers, as on. focused balance for now in penetration sheet, growth a certainly question penetrated. XX% I X stronger IVD Yes. tremendous we strength years the helping those is we of Afirma we Percepta and of last bridging opportunities was just into very our us I focused a drive about, today, picking XX% appreciate our see you things was and been into on swab, strategy see we talked getting up penetrated Decipher continue our the nasal ahead are today.

Afirma than IVD very are we us to, and absorbing very, growing they're us. of the R&D Decipher going and more would them X business as growth our on those of MRD, most on and projects spend. We've plates. expect swab, R&D and our the is nasal We're then, long-term of lot a important about discovery of strategic lot the driving Decipher, you think driver Afirma, since busy. spend, our sustaining working And you to things, a if course, majority projects of and rest Those on. got X So got

we're to got near-term we've we that the priorities. -- feel We've like very we're everything very with spectrums doing. got covered We've So the got very, clear focused. midterm to growth long-term

us say I priority that M&A And so now. isn't the for right would

Of something we're we've Then take on. opportunity what always we're we got knocking certainly focused is things doing. said, look, and come us. as that of on door a us that and I course, ahead not of a Because interesting we're to lot would opportunistic already look but our

next One moment our question. for

comes Our Mike next question from Matson with Company. Needham &

wanted went final is just it I guess on an your LDTs. kind that? I guess you at Joseph This FDA little of you kind spend guys wasn't be for worry update Maybe Mike. how imagine on any for really all. I would to that the kind for expectations. on of I guess, on it are were positively a to too of good. much rule thinking about more on bit get needed you Or yes, more But thinking any update

We're and We've Yes. now. developing any We've on IVD always just for at about company in on this might we already throw well the tests X Thanks, Joseph. years level, New behind as got market the we the been tests having clear that to capabilities the more things at adds felt burden highest the York clear. thinking with course. IVD IVD test an as evidence us. market all State of regulation I as those number and those ready a appreciate whatever regulation it Obviously, new tests that. a mean, very I has of got that business, for with as speak.

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would or come see existing to specifically just of say many that show any that up would some I'd burden tests it what as course, that obviously, out, because great increased regulatory get in today. so maybe So that offset should, P&L. say on they they special did treatment patients the was might I serve regulation

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Okay. maybe AUA guys mean Absolutely. bunch And there. the I on question then of posters conference. you a had a just Great.

I I test and just everything, wondering what that's around conferences internationally at guess these the was was of -- feel your up I model nowadays also Prostate lot space. changed wondering test PCR? a like of but there's physicians guess, potentially of I any You wrong, probably But I if wondering about the I guess me here. I'm discussion maybe any attendance how Has took ]? kind CLIA was viewpoints American into there's move that more correct and and discussion the, there? color around the if if just appreciate Decipher some but on initial that? the [

at U.S. of we're we lot Yes. that the U.S., is for outside okay? that GRID. we be that run a an supporting transcript change a in job booth test product Decipher there's a that The today, great the I the a clear-based a moving are -- went was presentations. what the clarify say, extent we it what launched We, as is our whole first AUA me presented going well. came to also team, And conference. with that interest a Where of that forward. had did instance. we team, I very good there the to our know showed do was probably And I going So and fuel but will our had U.S. From course, was mean of the after U.S., in let Decipher it probably. who that It demand. abstracts I Decipher to attended. PCR on and teams sure mostly to would run up, hear, that's helps very also really mostly course, I'm our conference up that IVD hearing outside I pent-up think outstanding well don't focused, to understand not showing marketing conference. congratulations commercial

the around we a they're presentation, physicians over positive. buzz sure new to I've them in extremely our intended to was using yes, heard the we guidelines actually XX% far, survey them there of a the made of I'm heard XX% at and be that guidelines. is the we did So very used. And are own majority points way aware significant of the everything are

very Thanks questions. my Marc, Okay. Great. for much, taking

Thank question you. Sykes from Our Matt [Operator comes next Sachs. Instructions] with Goldman

Congrats Prashant on Matt. quarter. This the on for is

Just question on a that a asked Prostate. earlier Decipher on follow-up was

addition for of tests monotherapy determine well prostatectomy versus therapy. biopsy multimodal hormone have radical as you to the So test as the

So can you respect reimbursement and just of the to help understand terms opportunity both us with volumes subsegments? in improvement for

say would together. come really I I think they Yes.

to mean, them is but for need from the the growth RP and opportunity on the we as don't necessarily I majority you volume the the about for by said, I far, have, where the far, biopsy rather by side biopsy the both. as growth. them side, of mostly there's to than of opportunity You talk bifurcate side largest come going volume. majority Mostly,

contracts real and opportunities. that the like announced in X both place. commercial We've reimbursement, is and There's opportunity still contracts, progress getting In we terms traction coverage the in of there great made great today.

where are so never far. to we stop. about and There's we feel good payers go after really really smaller think now, we I

payers We are was Afirma years after XX finding the still our for product launched.

keep that. through So you blocking way and just tackling your

the to what's from. execution comes team drive where and I've opportunity just reimbursement growth from going the our volume quite is the at again, to by say come it. I'd it's NCCN, And about whether the that's going [ frankly. length payer sales metastatic talked fantastic So and contracts, ],

as space? the thyroid essentially to anticipate then barrier see the cancer entry testing? is Got to Afirma, do high And of enter do landscape entering you competitors new the Or competitive moving it. set? How you

with a this the evidence including difficult behind importantly, very think stage be have and of it and at performance new tests that publication. most of the got meta that analysis even actually validation. that cited in them, and level penetration performance of word articles for recent would enter level to the the setting of X share just I entrants we most that was our of year we last Afirma the in that clinical had shows really own We the real-world outperformed

test talk always Veracyte which the of data and platform a really that and underestimated. at to be maintained, shouldn't also has itself, it's share #X level barrier entry then high significant And has. evidence has I is comes more how more from of actually generating the generate heart Afirma that is the only with growing its in and of that we've think but about evidence maintained become that Diagnostics not data So is the the is we just Decipher how guidelines this having it

Congrats it. quarter. the Got again on

next moment our question. you. Thank One for

Souda with Leerink comes question next Partners. from Our Puneet

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Yes. Can find... you

if follow-up and Decipher that. I And you the have was this Yes. Great. apologize thinking about and context All talk just that covered the growth already. I of quick right. a Afirma But the ought could guide? within be after rates we to

Yes.

the And -- and product guide line the driver at course, hence, biopharma revenue. I that moment. into just is and grew company. to the imagine obviously growth, of fair very, cylinders. X that the and say all the other smaller, is growing So the to Afirma overall to on and first still I increase. the XX%. of call testing at quarter think on expectations, is larger XX% let's XX% the But headwinds our raised mentioned it's them, testing of We is but it, and We testing can testing very getting is XX%, our firing just have nicely still Decipher recap, we exceeding to in know of Decipher for which if an projecting but you don't without the I you beginning guided either in caught grew

Got ask the AUA. about it. And could I then if

'XX half Decipher? how maybe presentations the maybe X you for up would You about had number for if -- an and either is could of [ take second that Obviously, sets set about or a of important or have minutes you important next of data that conference assays can we you. And driver the sort the there. note should 'XX Anything XXXX? even that on in other think ] in talk be released of you

Yes.

about earlier. but presentations. the We I'd strong a mentioning and with a a large have talked say for abstracts a thanks -- things, around metastatic. that AUA, sure. little bit guidelines of of we did buzz number So and NCCN would very been The for And that showing have there couple in

are metastatic to people and have be. think covered, I excited it should

we next think answer. the I this that's about. that year, early should get an so of end year, by of you areas And Hopefully, the X think into

maybe XXXX. And that a can so driver for become

all think across indications said, years multiple potential for I of markets Decipher I to driver itself all do come. a in cover and growth that we is and As

let's related and muscle of of which or just before, and, -- that, we support data we that as bladder say, we're further completion but then on well. X mentioned X And that of I've our test completed IVD working products to of have X Outside course, in of NIGHTINGALE invasive strategy in cancer MRD right course, bladder and for now, 'XX 'XX.

of think being for to I you not continuing And down of we those of the so certainly revenue but indications drivers the that us execute as set. knock milestones necessarily some about, time frame asked certainly and

I at like showing it this would time. now further to no closing turn back Marc to remarks. questions for I'm

I appreciate it. you, Thank Lauren.

in next we to do drivers. which business, exciting expect XX% accommodate you and every have growth drive our confidence growth significant We're long-term day making I'm we're entire tell, to the growth from signals business. scale us the that towards bolster as penetration our significant strong to serve the numerous going patients tests our these for XXXX revenue closing, over critical the serve years, they Afirma over can our this both our Veracyte our Their the we Veracyte are start forward. thank tireless to the in and progress enabled the nicely grow few in goal excited work and year bridging team of to of all seeing our markets and want efforts the us for in Decipher that I world. and core the So about and trajectory company experiencing to in positive testing

you. thank So

call joining for you us. Thank our concludes this gentlemen, and Ladies today.

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