Veracyte completes enrollment for lung nodule test trial

SOUTH SAN FRANCISCO - Veracyte, Inc. (NASDAQ:VCYT), a $2.32 billion diagnostics company with impressive ~20% revenue growth over the last twelve months, announced Tuesday it has completed enrollment of 2,400 patients for its NIGHTINGALE clinical trial, which evaluates the utility of the company’s Percepta Nasal Swab test for lung nodule assessment. According to InvestingPro data, the company maintains a robust gross margin of ~71%, reflecting strong operational efficiency in its diagnostic business.

The prospective, randomized trial is being conducted at over 90 academic and community centers across the United States. Patients have been divided into two groups—those whose test results were shared with their physicians and a control group. Participants will be followed for up to two years to determine if the test reduces unnecessary procedures for benign nodules while accelerating treatment for cancerous ones.

"There is a tremendous need for a noninvasive tool that can help physicians better care for their patients with lung nodules," said Dr. Jasleen Pannu of Ohio State University Wexner Medical Center, a participating trial site. The company’s strong financial position, with more cash than debt and a healthy current ratio of 5.43 according to InvestingPro, positions it well to advance this critical medical technology. For detailed analysis and 12 additional ProTips about Veracyte’s financial outlook, investors can access the comprehensive Pro Research Report on InvestingPro.

The Percepta Nasal Swab test uses a brush to collect nasal epithelial cells to assess molecular changes associated with lung cancer risk in patients with lung nodules and smoking history. According to the company, clinical validation studies showed the test is 97% sensitive in identifying low-risk nodules and 92% specific in identifying high-risk nodules.

Lung cancer screening with low-dose CT scans can identify many non-cancerous nodules, potentially leading to unnecessary procedures and patient anxiety. The American Cancer Society estimates nearly 125,000 people will die from lung cancer in the United States in 2025.

"Demonstrating that a new test can positively impact patient care is key for physician adoption and health insurer coverage," said Bill Bulman, M.D., Veracyte’s medical director for Pulmonology, in the press release statement.

The company did not provide a timeline for when results from the trial might be available. With analysts expecting net income growth this year and the company maintaining strong financial health (rated "GREAT" by InvestingPro’s comprehensive scoring system), Veracyte appears well-positioned to advance its diagnostic technologies while maintaining solid financial performance.

In other recent news, Veracyte, Inc. reported a strong performance for the second quarter of 2025, with earnings per share reaching $0.44, significantly surpassing the expected $0.11. The company’s revenue also exceeded forecasts, totaling $130.2 million compared to the anticipated $121.1 million. William Blair reiterated an Outperform rating for Veracyte, noting that the company’s revenue was 8% ahead of consensus estimates. Additionally, Morgan Stanley adjusted its price target for Veracyte from $29 to $28, maintaining an Underweight rating despite acknowledging a solid second-quarter performance. This performance was attributed to the continued momentum in Veracyte’s Decipher and Afirma product lines. These developments highlight the company’s strong financial results and the varied perspectives from analysts on its stock.

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