Veracyte expands board with two new members

SOUTH SAN FRANCISCO, Calif. - Veracyte, Inc. (NASDAQ:VCYT), a global cancer diagnostics company, announced today the addition of Brent Shafer and Tom Miller, Ph.D., to its board of directors, effective immediately. The new appointments aim to enhance the company's leadership with their extensive experience in healthcare and technology.

Brent Shafer boasts over four decades of expertise in health information technologies, medical devices, and various healthcare solutions. His previous roles include serving as chairman and CEO of Cerner Corporation (NASDAQ:CERN), CEO of Philips North America, and executive positions at Hillrom, GE Medical Systems, and Johnson & Johnson. Shafer will also join the Compensation Committee of Veracyte's board.

Tom Miller, Ph.D., brings a unique blend of science and entrepreneurship, particularly at the intersection of AI, chemistry, and biology. He is the co-founder and CEO of Iambic Therapeutics, a biotech company with an AI-driven drug-discovery platform. Additionally, Miller has an academic background, with over a decade as a tenured professor at Caltech and a substantial number of peer-reviewed publications and patents. He will be part of the Regulatory and Compliance Committee on Veracyte's board.

The CEO of Veracyte, Marc Stapley, expressed enthusiasm for the new members, highlighting their diverse backgrounds and expertise that they bring to the company's board. Both Shafer and Miller have shared their excitement about joining the board, emphasizing their commitment to advancing Veracyte's vision and the potential positive impact on cancer care.

Veracyte's mission is to transform cancer diagnosis and treatment globally, providing clinicians with valuable insights to guide patient care. The company's diagnostics platform leverages genomic and clinical data, bioinformatics, AI, and an evidence-generation engine to deliver high-performing cancer tests. These tests are designed to secure durable reimbursement and guideline inclusion, as well as to generate new insights for ongoing innovation and pipeline development.

This announcement is based on a press release statement from Veracyte, Inc. No further details regarding the financial terms or specific expectations for the new board members' roles have been disclosed.

In other recent news, Veracyte, a global genomic diagnostics company, has reported noteworthy developments. The company delivered a robust second quarter in 2024, with a 27% increase in revenue to $114.4 million, primarily driven by a significant rise in testing revenue. This growth was largely attributed to the high demand for its Decipher and Afirma tests. Veracyte also reported a GAAP net income of $5.7 million and an adjusted EBITDA margin of 21%.

In addition, Needham upgraded Veracyte's price target, reflecting an improved financial outlook for the company. The firm maintained a Buy rating, indicating confidence in Veracyte's financial trajectory. This upgrade was influenced by updated estimates for non-GAAP EPS and adjusted EBITDA, suggesting an anticipation of improved financial performance.

Moreover, Veracyte is making strategic moves like the acquisition of C2i Genomics, which are expected to drive future growth. The company is also investing in innovation and plans to launch an MRD assay in 2026. These recent developments underscore Veracyte's commitment to continued revenue growth and profitability.

InvestingPro Insights

As Veracyte, Inc. (NASDAQ:VCYT) welcomes new expertise to its board, the company's financial health and market performance continue to be of interest to investors. According to InvestingPro data, Veracyte holds a market capitalization of approximately $2.27 billion, reflecting the market's valuation of the company. The company's revenue growth has been notable, with a 21.59% increase in the last twelve months as of Q2 2024, and an even more impressive quarterly revenue growth of 26.69% in Q2 2024.

Investors may also find the company's gross profit margin of 67.67% in the same period indicative of Veracyte's ability to manage its cost of goods sold effectively. However, the P/E ratio stands at -40.23, suggesting that the market currently values the company's growth prospects more than its current earnings.

Among the InvestingPro Tips, two key insights stand out for Veracyte. Firstly, the company holds more cash than debt on its balance sheet, which may provide financial flexibility and resilience. Secondly, analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's profitability. Additionally, it's worth noting that Veracyte does not pay a dividend to shareholders, which may be a consideration for those investors seeking income in addition to capital growth.

For those interested in a deeper analysis, there are 13 additional InvestingPro Tips available at Investing.com/pro/VCYT, offering further insights into Veracyte's financials and market performance.

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