VeriSight at Leerink Global Healthcare Conference: Strategic Growth Path

On Tuesday, 11 March 2025, VeriSight (NASDAQ: VCYT) presented its strategic plans and financial outlook at the Leerink Global Healthcare Conference 2025. The conference addressed both promising growth prospects and challenges, including the planned exit from its French operations. VeriSight’s focus on core products, Decipher and Afirma, was underscored, alongside its commitment to long-term growth through strategic investments and potential acquisitions.

Key Takeaways

• VeriSight plans to exit its French SAS business, impacting 5% of its revenue.
• The company is focusing on expanding its core assays, Decipher and Afirma, which make up 95% of revenue.
• Strategic investments are being made in MRD and IVD development in the US.
• Decipher is expected to grow by 19% to 22% in 2025, with Afirma projected to see high single-digit growth.
• M&A opportunities are being explored to enhance growth and maintain a strong financial profile.

Financial Results

• France SAS Exit:

- Considering selling the French SAS business, which contributes $4 million in quarterly revenue.

- Exit could yield $13 million in adjusted EBITDA or investment power.

- Adjusted EBITDA for 2025 is projected between 20% and 21.6%.

• Decipher Growth:

- Revenue growth is guided at 19% to 22% for 2025.

- Launching Decipher metastatic in the first half of the year, with significant contributions expected later.

• Afirma Growth:

- Anticipated high single-digit growth for 2025.

- New versions of GRID expected to drive further interest.

Operational Updates

• Decipher:

- Expansion into metastatic markets with two-thirds of patients covered by Medicare.

- Ongoing reimbursement and internal test finalization.

• Afirma:

- New GRID version to be introduced in the latter half of the year.

- Significant growth observed in Bethesda five revenue.

• MRD and IVD:

- MRD product launch planned for the first half of 2026.

- IVD development focus in the US post-France exit, emphasizing Prosigna and Decipher.

Future Outlook

• Decipher and Afirma:

- Decipher expected to drive long-term growth, particularly in the urology channel.

- Afirma aims for further market penetration and growth.

• Portfolio Expansion:

- M&A opportunities are being evaluated to bolster the portfolio and maintain financial strength.

- Plans to advance in the MRD market with reimbursement coverage anticipated.

Q&A Highlights

• France SAS Exit:

- Clarification on the decision-making process and continuity plans for Prosigna manufacturing.

• Competition:

- VeriSight believes it has gained market share in Decipher and maintains a leading position with Afirma.

• M&A Strategy:

- Emphasis on acquisitions that enhance growth and maintain a differentiated financial profile.

• Decipher Metastatic Rollout:

- Education of sales teams and physicians is crucial for growth.

VeriSight’s presentation at the conference outlined its strategic focus on core products and growth opportunities. For a detailed review, refer to the full transcript below.

Full transcript - Leerink Global Healthcare Conference 2025:

Puneeth Sada, Host, Leerink: Welcome, everyone. I’m Puneeth Sada. I cover life science tools and diagnostics here at Leerink, and it’s my pleasure to be hosting Rebecca Chambers, CFO from VeriSight.

Rebecca, great to have you here with us.

Rebecca Chambers, CFO, VeriSight: Thanks for having us today, Puneet.

Puneeth Sada, Host, Leerink: Okay. So maybe to kick off, you know, there were a number you obviously had a, you know, you had a good quarter. Decipher volumes grew 45%, Afirma, eight %. You released a strong guidance for $7,480,000,000. But there was some confusion in terms of the exit you had for the unprofitable, I mean, French business.

Maybe just, if you could take a minute and talk about the France SAS exit. You’re obviously not investing into that business anymore. You did mention on the quarter that, you know, that the asset could go bankrupt if you don’t find a buyer. Maybe just take us through the mechanics of that and and what’s needed and what’s the risk either to, you know, sort of obviously to Veracyte in that process itself. Maybe just take us through the puts and takes.

Rebecca Chambers, CFO, VeriSight: Yeah. Happy to. And, good morning, everybody. Before I get started, I’d like to refer to our safe harbor statement on our website, www.verisite.com. All commentary made today will be covered by that.

But or and with that, to Verisite SaaS. So as you know, Affirm and Decipher cover 95% of our revenue. What the question Puneet asked was regarding the other other 5%. The other 5% is primarily made out of our Marseille, France location. We have, back in 2021, we acquired a company called HaleoDx to vertically integrate, our IVD strategy with the development and the manufacturing of of those IVDs.

With that acquisition came, a biopharma CRO business, that effectively, at that point in time, was relatively profitable, and had a a pretty good revenue cadence with a repeat book of business. Unfortunately, that repeat book business was relatively concentrated. And and over the course of the last couple of years, with the macroeconomic environment and shifting technologies, that revenue the portion of the the business that that contribute to has declined over 60%. In France, as we all know, the cost structure doesn’t move the the same way revenue can move. And so, we’ve done everything in our power to effectively manage those costs.

But as we entered into 2025, there still remained a material amount of headwind, as we’ve described in our our public commentary. And so over the course of, you know, the last period of time, we have assessed our options in Veracyte SaaS. And, what we announced on our earnings call was that we are considering no longer funding Veracyte SaaS. The French process is very particular, and therefore, what we can say and what we can’t say when we can say it is definitely, very strict. And so I think the the word considering is relatively or incredibly important because no decision has yet been made as to whether or not we will, you know, decide to no longer fund.

That is the the body of employees that, represents the entirety of the employee base. There’s a that will go on for a period of months, at which point in time, you know, potentially, we’ll make but in parallel with that, we’re absolutely pro we proactively engaged in selling, putting the business up for sale. And that may go in bits or pieces and or the entirety of it. Right? So when you think about, when you think about what makes up the revenue over there, the manufacturing of Prosigna is, you know, pretty important and probably the the one piece that, or is the piece that, you know, we obviously want to maintain continuity of supply to Prosigna for Prosigna.

And so, hopefully, we’ll we’ll find a buyer for that manufacturing portion. Hopefully, we’ll find a buyer for the rest of it as well, which, you know, has some interesting assets. If there is no longer if there is not a buyer for a bit or all of it, it will go into bankruptcy. And that is part of the process. The goal with the French, the French process is absolutely, that they maintain, as many jobs as possible.

And so what that effectively means may or may not be continuity of supply for Prosigna. But that’s our obviously, our goal is to make sure we have continuity of supply for for our customers and and for patients, obviously. That’s critically important. It’s very important that VeriCite Inc is not it’s a nuance, but we are not actually making any decisions. This is absolutely the entity that’s making the decision.

The only decision we may make in the future is not to fund. And so, you know, I think what this does provide is a very strong Versailles at the end of the year when this process is over. We have a couple of quarters of uncertainty around $4,000,000 of revenue to come out with a very you know, an incrementally stronger financial position where we can invest, you know, the the burn from from that entity in a way that is has a higher ROI and is also you know, I’m sure will drop some of it down, as well. So, you know, I think it it’s unfortunate that it’s unfortunate that it’s caused such confusion for 5% of the revenue, but I think, you know, our IBD strategy is not changing. We’re still incredibly committed to it.

It’s just, effectively, you know, we’ll be rein we’ll be investing in in bringing some of that over here to The States. It might push out the timelines a little bit, but there wasn’t anything really material in our internal models for the next couple of years anyways. And so, you know, if there’s a slight delay, that doesn’t really change anything from our perspective. So net net, we’re super, you know, we’re trying our best to be as compassionate to our employee base. At this point in time, it’s a tricky situation.

SAS has every you know, we’ve set them up so that they have everything in their power to be successful in a sale, either a bit or all. But if they make the determination go into bankruptcy, that’s what we’re we have risk around is that 4,000,000 of revenue a quarter. So to gain 13,000,000 of adjusted EBITDA or 13,000,000 of investment power, you know, I think we’ll end up much in a stronger

Puneeth Sada, Host, Leerink: place than we are today. Got it. Yeah. Thanks for covering that, and that’s helpful. I wanted to talk about the, the philosophy behind what is now, as you said, ninety five percent of the as of of the mix, which is two assays.

DECIPHER, obviously, leading the charge there, and you have Afirma growing as well, somewhat of a mature product. But when we think about the portfolio

Rebecca Chambers, CFO, VeriSight: Mhmm.

Puneeth Sada, Host, Leerink: You had, you know, Envisia. And prior to that, even the Percepta, not the nasal swab one, but the Percepta, or the GSC. And both of those assays were deemphasized and now focuses again, you know, very much on DECIPHER and AFFIRMA. So maybe just talk to us about the philosophy of, you know, driving with two assays versus, you know, usually, we didn’t see in diagnostics that the menu and the portfolio is expanding. So maybe just talk to us about that.

Rebecca Chambers, CFO, VeriSight: Yeah. Absolutely. And that’s absolutely our intent in time. Right? But sometimes to to take two steps forward, you have to take one step back.

And I think over the the three years that we have been here, at Veracyte, this management team, we have looked incredibly, stringently at the portfolio and assessed the ROI of investments. If you think about something like Percepta GSE, it was a great product. No question. It was just a really small market and needed a lot of clinical utility evidence, which takes tens of millions of dollars. And so that ROI was deemed not to be there.

We have a best in class financial profile, at this point in time, right, where we just guided to 2021.6% adjusted EBITDA for 2025, that comes through really stringently looking at your portfolio. And and that’s absolutely what we’ve done over the last three and a half years and absolutely what we plan to continue to do, going forward. That being said, we don’t believe that will come at the expense in time of a very diversified portfolio. We’re lucky in that not lucky. That’s the wrong word.

We’re fortunate in that, you know, Affirm and Decipher are strong growers, and we believe we’ll continue to drive our differentiated growth profile through the contribution of our long term growth drivers. And so, excuse me, we have, you know, we have that strong solid footing with, you know, incredible profitability being driven by those two, such that we can invest in these longer term growth drivers of which some of will be added to those bags. Right? So when you think about DECIPHER, pretty soon you’re gonna have DECIPHER metastatic, which will be added to the bag, in the fall. I’m sure we’ll get there.

And then also our MRD, product, out of the gate, that’s a platform. But effectively, the first one will be in muscle invasive bladder cancer, and that will also be added to the decipher sales force. And so in the urology channel in particular, you will have, four four products in the decipher bag, the prostate test, the bladder test, the MIBC MRD test, and then the metastatic test. And so we’re absolutely moving towards that direction. I think the question just is on the Afirma side, it’s a little harder to put more into that bag.

And so the, you know, that’s part of the philosophy. We’re always scouring the landscape to that end. But, you know, I think it’s it’s less it’s less, obvious what that next test can be on on the endo side. So I think the good news is is between, MRD, nasal swab, and our IBD strategy, we have three great long term growth drivers to to augment our our Afirma and Decipher products that are already contributing great growth. And we’re really excited about what that type of portfolio could look like in three to five years.

Puneeth Sada, Host, Leerink: Got it. So maybe continuing with Decipher, you know, you expect to grow in the through low twenties volumes revenues this year. I think that’s what you have outlined. You know, maybe talk to us about the sustainability of that. And part of it is, you know, you received level one evidence last year.

There was a growth from that. And and so how much of a comp is, you know, sort of how much of a challenge is is that this year in terms of the comp? And then, maybe if I, well, I wanna touch on the advanced tools tables too, which is actually helping you. Yeah. So how much of the upside from advanced tool table can actually offset some of that?

Rebecca Chambers, CFO, VeriSight: So it’s it’s, you know, it’s incredibly challenged to tag out an order. Where did this come from, from an advanced tools perspective or, you know, penetration or share or all those things? So, while I would love to give quantitative metrics to each of those, I think that what we’re really focused on is just further penetrating and further taking share. Right? So that is what effectively makes up the implied revenue growth guide of 19 to 22% in 2025.

You’re absolutely right. We have an incredibly hard comp. If you just think about, what we delivered in 2024 from volume growth basis, and effectively the delta between the 34, 30 five percent volume growth and the, you know, low twenties, 19 to 20%, 22%, guide for 2025. What year is it? Really Twenty twenty five.

Really is a couple of things. One is the law of large numbers. If you assume the slope of the curve stays the same, just the law of large numbers takes you down. And then the delta between 2024 revenue growth and volume growth was prior period collections, and obviously, on a revenue basis, that is a a headwind as well. So, you know, I think when it comes down to it, the slope of the curve implied in the guide is absolutely, you know, incredibly steep remains incredibly steep, and we’re quite excited to further penetrate, decipher into your earlier question.

Obviously, we think this can go on for quite some time. I’m sure we’ll get into the multiple variables driving that growth, but, you know, I think where it stands today, we’re we’re in good stead.

Puneeth Sada, Host, Leerink: And and how should we think about the metastatic contribution this year?

Rebecca Chambers, CFO, VeriSight: Yeah.

Puneeth Sada, Host, Leerink: And maybe just on the indication side, prostate complex disease, lots of indication. DECIPHER has done well. Is there anything else that we ought to be thinking out after after metastatic? But maybe let’s start with metastatic.

Rebecca Chambers, CFO, VeriSight: Yeah. So on the metastatic side, that’s an incremental ten percent of of, the end incidence population. So think of the incidence the total incidence of prostate cancer being around the three hundred and ten to three hundred and fifteen thousand patients, unfortunately, every year. Metastatic, that ten percent, we have, now reimbursement for, and we’re in the late stages of effectively finalizing the the test internally as well as, training the sales team, etcetera. So that will launch in the first half of this year, with the contribution really happening in the back half.

And that contribution is is you know, it’s slow out of the gate. We are not assuming the, you know, the the steepness of the curve, that we’re seeing on on the localized side. I think there’s a couple of different things. Just one, you have to educate educate the sales team, then you have to educate the physicians. There’s, there was a great paper and poster in Stampede that we then need to publish, to drive, you know, hopefully, that plus more, information will will help us with guidelines.

And so you really you know, it’s just kind of that that early drumbeat of of evidence that will help drive that, penetration over a multiyear period. But, you know, two quarters is is really early to to get, you know, too much contribution into 2025. But it’s a critical point, part of our our growth trajectory over the multiyear period and why we have confidence in Decipher’s ability to continue to drive growth.

Puneeth Sada, Host, Leerink: Got it. Then another point on Decipher’s revenue, the ASP. Obviously, this is a well covered test. Lots, you know, significant evidence behind it. How should we think about the ASP contribution here?

I don’t think that is something that you have that that’s not something that you you you you know, you’re provided much into, but I would love to hear if there’s, you know, ASP expansion as a result of metastatic or any other contribution.

Rebecca Chambers, CFO, VeriSight: Yeah. So not necessarily as a result of metastatic. Outside of the fact that two thirds of metastatic patients are Medicare and will have reimbursement. For the other third, you’ll have to go go have those commercial conversations. Right now, we have around 200,000,000 covered lives for DECIPHER.

So over a five year period, we absolutely believe that this will be a there will be ASP tailwinds. In 2025, in particular, if you recall, we have, a relatively large prior period collection headwind, which was around two thirds DECIPHER, in 2024. And so, you know, we didn’t call out ASP as a driver this year just primarily because that’s a material headwind. And so, you know, I think the good news is as we’ve done with Afirma for the last couple of years, the more covered and contracted lives we get, the more ASP is a tailwind. But we’re now into the portion of the payer curve, if you will, that is, you know, much smaller wins if you and so, you know, effectively, the the large chunky payer wins that we’ve had in the past will will now just kind of even out a bit and just be smaller ones, as we move from 200,000,000 up in terms of the covered lives.

So ASP will absolutely be a tailwind over a five year period. 25 is a headwind.

Puneeth Sada, Host, Leerink: Got it. Okay.

Rebecca Chambers, CFO, VeriSight: Potentially.

Puneeth Sada, Host, Leerink: And on the competition front, if I may ask, you know, in the advanced tool table, there was another competitor, the sort of an AI based competitor. Just trying to understand, you know, how are you thinking about the overall competition in the market? And then and some one of those competitors has, had a collaboration with another diagnostic company, oncology testing company, to broaden their distribution. So just trying to understand sort of like how you know, again, DECIPHER long standing product as competitors emerge in the marketplace. What’s the maybe the feedback from the oncologists?

What is the, you know, what are you hearing from the field? And what what sort of, how do you think about the competition overall in the current state?

Rebecca Chambers, CFO, VeriSight: Yeah. I’m happy to go into that. So right now, there’s there’s four players in this market. Three genetic analysis tests are we have the leading share and then a, effectively, a digital pathology test. In the guidelines, effectively, there the digital pathology test has level one evidence.

We have level one evidence. The other two players, and the genetic analysis side are no longer recommended in guidelines. And so I think over the course of 2024, we believe we took from the genetic analysis test around 500 basis points of share. We don’t see that dynamic changing. And if anything, the guidelines have reinforced that.

And one important thing to note on the guidelines, we have, effectively for our public commentary, or documents, we have NCCN approval for comments that have been made. And so I know there’s been some debate, if you will, about, who’s in guidelines, who’s not on on the genetic analysis side, but we we ensured that we had approval from NCCN for for the points we made. And and I think that’s important because we would never wanna misrepresent that. So I think, you know, I think when it comes down to it with the 85 publications of DECIPHER vis a vis the genetic analysis test, we have incredible evidence. We have credible coverage.

We have an incredible sales team, and and DECIPHER is is doing incredibly well from a, from a share perspective. The new entrant on the digital pathology side is super interesting. Right? Digital pathology is is a, you know, is a relatively new field. However, we view that to be more complementary than competitive, because effectively, you’re looking at, you know, you’re looking at an H and E slide, and that has absolutely different characteristics than the genetic components of the disease.

Right? So that’s pretty obvious. See how I told you I would. So that that absolutely has different components and and is complementary. You know, one of the other genetic analysis tests just signed a partnership with another company from a digital path perspective, we’re in incredibly good position.

We just had three posters at ASCO GU. And, you know, I think if we heard from our KOLs and if we heard from our physicians that they thought that information would be helpful, we’d be able to, we’d be able to pivot and and do something quite quickly in a in an interesting way. That being said, today, they aren’t really asking us for it. Right? But, you know, I think always be prepared.

So we have 50,000 slides. We’ve scanned thirty thousand over 30,000 patients. We scanned all of those. We have 30,000 outcomes. Mhmm.

And that effectively is what gone has gone into those posters, at ASCO GU. And so, you know, I think on one side, the digital pathology company signed up a partnership for channel. The genetic analysis company signed up a partnership for content. We both. So, you know, I think we’re in a good position.

And and, you know, I think to the extent that digital pathology becomes interesting, we plan to lead the charge just like we always would.

Puneeth Sada, Host, Leerink: Okay. Got it. Switching gears to, Affirma, I mean, you know, you’ve estimated the iron market is around 65% or so penetrated and, you know, can get to that 80% penetration, obviously, you know, appears to be a market that is well into its late sort of late innings. But maybe, help us understand, you know, what are some of the drivers with which you think further penetration will happen? What sort of growth rate that we ought to be expecting for for, Afirma and, you know, in terms of competition, if you’re seeing anything, any new entrants there.

Rebecca Chambers, CFO, VeriSight: Yeah. And the competition one, I’ll take that first. No. That’s been pretty steady over the last couple of years. There’s two other competitors.

One has, more material share than the other, but we have the leading share of both, or all of all three. And so, you know, I think from a competitive positioning, we’re in good stead. Grid has definitely helped us from a competitive positioning as we, you know, partner more with academics to drive, to drive, you know, collaboration and knowledge of the basis of disease. So I I think on on that front, we’re we’re doing quite well. For Afirma, we’ve guided high single digit growth this year.

We have not given long term a long term guide on Afirma, but the components of of effectively how we will continue to grow are obviously share. Unfortunately, incidence, growth, is happening here. It’s in the low single digits, and then further penetrating to get to that 80%. And that’s a lot of blocking and tackling by our excellent sales team. And so I think when it comes down to it, you know, I think Afirma is our steady yeti.

So, there are absolutely things that, you know, we’ll continue to do in terms of product dynamic. We’re gonna introduce a new version of grid in the back half of this year, that will continue to drive that penetration and interest. But I think at the same time, you know, we have opportunities with the firma that that we hope to, we hope to to be able to talk more about in the coming years. So, you know, I think overall, the firma franchise is is quite healthy and, you know, with with the investment provided to it, you know, it’s it’s seeing really nice rejuvenated growth. Has a hard comp between Prairie Prairie collections and and the amazing growth that we saw last year, but high single digits I’ll take for a product that’s been on the market for thirteen years.

Puneeth Sada, Host, Leerink: Yeah. And and you’ve talked about Bethesda five. How much of that this growth is a result of Bethesda five and or and you mentioned GRID two as as as that version is introduced, sort of, I guess, trying to understand how much is baseline growth for this assay versus some of these new drivers that testify in GRID.

Rebecca Chambers, CFO, VeriSight: Yeah. I would say the best the vast majority will be baseline GRID, and I would put in the in the baseline to be clear. We don’t get paid for GRID. It’s an RUO test.

Puneeth Sada, Host, Leerink: Okay.

Rebecca Chambers, CFO, VeriSight: I’m sorry. It’s an RUO set of information that is provided with the test, and so I it’s hard it would be incredibly challenging to differentiate. For Bethesda five, that is a 30,000 patient population annually. Medicare is a smaller percentage of that population around a third. And so think of that as as the with the LCD, we are now able to go after those 10,000 patients.

Mhmm. Some of which are already in the denominator. Right? In terms of Bethesda five in general around low single digits of our volume, that would primarily be on the commercial side prior. Mhmm.

But today, you know, as we sit here, we have the ability to go really go after those Medicare patients of that 10,000, and we did say revenue grew 80% in the fourth quarter with Bethesda five. So it’s it’s a good news story. It’s just not, you know, the largest market in the world to go after, and so, therefore, you don’t hear us calling it out, as a primary driver. It’s absolutely, you know, a nice tailwind. It’s just you’re not gonna shift the needle more than a little bit.

Puneeth Sada, Host, Leerink: Got it. And is, ASP contribution I mean, do you expect ASP to remain stable here? Or

Rebecca Chambers, CFO, VeriSight: If without prior period collections, absolutely. I think it’s just how those flow in in any given quarter or not. Right? We had a, the the other third of the 11,000,000 in 2024 was Afarma. So, you know, I think there is a headwind there as well.

But over a five year period, absolutely, ASP will be a a tailwind. It probably won’t be as a material of a tailwind as it will be for Decipher given Afirma has 275,000,000 covered lives. But ASP in general, you know, is a good news story.

Puneeth Sada, Host, Leerink: I wanted to just touch briefly on pipeline before I move to MRD. What’s the what’s the latest thinking on the pipeline in terms of the, you know, IVD market opportunity given that you’re exiting the France position. How should we think about that? And, you know, how are you how how do you plan to approach Yeah.

Rebecca Chambers, CFO, VeriSight: I would say our go to market approach at this point in time has not changed, and we’re incredibly committed to our And so, you know, we we do have country managers in in the region that are serving tier one and what we call, you know, very critical customers with large enough volume. And so, you know, I think when it comes down to it, those folks are are still managing and marketing Prosigna and and going after it. We will, most likely be we will be reinvesting in the, IVD development team here in The US. Right now, about a third of our activity is happening in The US for IVD development. The other two thirds are in France.

So we have a foundation to grow from there. And if you think about the numbers, that we gave on the earnings call, we said the burn was 20,000,000 and the gain on EBITDA would be 13. That delta is the reinvestment into the IVD business here in The States. And so, you know, I think we’re we’re confident and and committed to this strategy. I think when it comes down to it, Prosigna and DECIPHER, our our absolute Prosigna and NGS and DECIPHER, qPCR are are the first two tests that will come to market.

And instead of vertically integrating on the manufacturing side, we’ll do it through a CMO and those, I mean, those are tests that CMOs manufacture day in, day out. So it’s not something that we’re particularly concerned about.

Puneeth Sada, Host, Leerink: Got it. Okay. And then, wanted to touch on the MRD side. Obviously, you have, you know, you acquired an asset. You’re building that assay into the MIPC indication.

I believe first half twenty six is when you’re expected to roll that out. You look at this market and obviously have a leading competitor in that space. There’s some tumor naive assay that is that are also have emerged, but there are a number of other competitors. Some of them are well capitalized. They’re still, I mean, they’re they’re pursuing that market.

How should we think about, your positioning in this market? How the you know, how do you plan to serve this, you know, this product into the market? And the evidence needed to it’s just all of these things take time. Right? So by the time and we’re rolling in for 2026, first half ’20 ’6, this could be, I mean, today, 5% of the penetration in the market could be, you know, 10% by by that time.

You know? Who knows? So how do you think about competition and positioning of this asset?

Rebecca Chambers, CFO, VeriSight: Yeah. I mean, I think when it comes to MRD, this isn’t there’s so many players because it is a huge market. Right? And so, you know, I think, obviously, we would obviously always aim to win, but, you know, for it to be meaningful to Veracyte, we do not need to be the market leader. Similar to DECIPHER, we think you can come from behind.

DECIPHER was the third of those three genetic analysis tests come that came to market. Mhmm. And through actually the the whole transcriptome approach, we have driven more data, more utility, more evidence, more coverage. Right? And so we’ll be taking the same approach here.

And, you know, I think when it comes down to it, we have, you know, we’re kind of calling MIBC our pilot for the platform, but there’s no reason why we can’t go into many other indications across the MRD market. And so, you know, I think we will be launching in the first half of next year. We plan to have reimbursement coverage with that launch. So we won’t, you know, be having zeros in in the economics, and, we will drive our engine that effectively shows that whole genome sequencing at every at every point of time in the MRD journey does provide kind of that flywheel of evidence generation and utility. I think the other thing the whole genome approach that we’ve take that we’ve acquired through c C2I provides us is not only that in additional data, but it it it will provide biological insights that we have, that will they’ll gain from.

Doing whole genome will provide us a rich dataset if we choose to go into tumor naive. And so, you know, I I really think about this as, yes, we might not be first to market, but the market is huge. And and in the end, you know, the science will win. And we even heard on your panel yesterday that whole genome is is you know, they’re looking for incremental they’re looking for incremental information through the whole genome sequence, and that’s where the KOLs think this is going. And so we’re excited to that our our strategy plays directly into that.

Puneeth Sada, Host, Leerink: Yeah. Getting that sensitivity higher is the key. Maybe just, in the minute we have here, would love to understand your approach to then addition of the products as you talked about initially trimming of the portfolio to get which you are. And then, should we think about, you know, capital deployment in terms of m and a, in terms of is it the technology? Is it a focus?

Is it addition of things that enhance your existing position of DECIPHER, pharma, thyroid, prostate, or overall in urology? Or how should we think about as you think about expansion into the market on in more products?

Rebecca Chambers, CFO, VeriSight: Yeah. Obviously, we we are very well positioned, in a consolidating industry to to be consolidators. We built a a foundation, through bringing these companies together, Decipher and, Veracy Veracyte. Yeah. Veracyte.

I don’t know why I said Veracyte there. Veracyte that effectively allows us, to really add more things. Right? We started there a little bit, in terms of adding things to the bag. That being said, the bar is incredibly high.

You saw us do the C2I acquisition and not materially change our financial profile. You know, we actually enhanced it quite materially that year. And so the goal would be to find other things like DECIPHER or other things like C2I that allowed us to not only have strong growth for the future, but also maintain a a relatively differentiated financial profile. So we look at many different m and a opportunities every single day. You can imagine over the course of of close to four years how many we’ve looked at and we’ve executed on one.

So, you know, I don’t I wouldn’t, say no to m and a in the future for the sake of saying no. Absolutely. This is gonna be an important lever for growth, but it’s one with a high bar that we look forward to, to executing upon at the right point in time

Puneeth Sada, Host, Leerink: Got it.

Rebecca Chambers, CFO, VeriSight: And the right valuation, obviously.

Puneeth Sada, Host, Leerink: Okay. Alright. Excellent. That’s all the time we have. Thank you again, Rebecca.

Rebecca Chambers, CFO, VeriSight: Thank you, guys.

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