Veracyte (VCYT) investor relations material

Strategic acquisitions and portfolio expansion

• Acquisition of Convergent Genomics aligns with the strategy to expand across the care continuum, particularly in bladder cancer, adding urine-based UroAmp to existing tissue and blood-based tests.

• UroAmp is nearing commercial launch, supported by extensive clinical work and publications, and will leverage existing urology channel synergies.

• Decipher Bladder Genomic Classifier commercialization will ramp up, aiming for tissue ownership from the outset and integration into both non-muscle and muscle-invasive pathways.

• Investment in Convergent is modest, with operational synergies expected, and the addressable market for UroAmp in non-muscle invasive disease estimated at $400 million.

• The company continues to pursue new indications and M&A, transforming from a single-product to a multi-indication cancer diagnostics portfolio.

Product performance and market dynamics

• Decipher and Afirma tests showed strong revenue and volume growth in Q2, with Decipher growing about 20% and Afirma 17-18%.

• Decipher's market penetration is about one-third, with potential to reach up to 80%, driven by new physician adoption and increased order frequency.

• Growth in Decipher is supported by ongoing evidence development, with key studies like ENZAMET and upcoming publications at ASTRO expected to drive guideline inclusion.

• Afirma continues double-digit growth, aided by the launch of a universal transcriptome assay and improvements in average selling price.

• Prosigna launch benefited from pivotal OPTIMA study results, with strong institutional feedback and expectations for Medicare coverage at $2,500, potentially rising to $3,600.

Innovation, evidence, and clinical integration

• Multi-sample approach in bladder cancer leverages urine, tissue, and blood analytes to address different clinical questions across disease stages.

• TrueMRD, a whole genome-based MRD platform, launched in muscle-invasive bladder cancer, with plans to expand to other indications based on clinical data.

• AI and digital pathology are seen as complementary to molecular testing, with Decipher remaining the gold standard due to guideline coverage and evidence.

• GRID platform enables research by providing access to large-scale transcriptome and pathology data, supporting future product development.

• Evidence generation remains central, with multiple ongoing studies expected to support further adoption and guideline inclusion.