Veracyte (VCYT) Morgan Stanley 22nd Annual Global Healthcare Conference summary

2024 accomplishments and financial performance

• Core testing business growth exceeded expectations, driven by Afirma and Decipher.

• Adjusted EBITDA margin reached 21% in Q2, considered industry-leading.

• Strong balance sheet with $260–$270 million cash projected year-end and no debt.

• Profitability milestone achieved, reflecting focused financial management.

Decipher market expansion and adoption

• Decipher test volume tripled in three years, now nearly 20,000 tests per quarter.

• Market penetration estimated at 35%, with a target of up to 80% in the future.

• Over 200 million covered lives for Decipher, with major payer contracts secured.

• Recent LCDs enable service to metastatic prostate cancer, expanding addressable market.

• Sales force optimized at around 50 reps, with no major expansion planned.

Product development and evidence generation

• Decipher’s differentiation comes from whole transcriptome analysis and extensive supporting evidence.

• GRID tool fuels real-world evidence and research, supporting adoption.

• Decipher is the only gene expression test with Level 1B NCCN guideline support.

• Afirma enhancements, including TERT promoter gene and GRID, drive physician engagement.

• Afirma now covers Bethesda V indication, adding 30,000 patients and boosting growth.