ISRAEL – Veracyte, Inc. (Nasdaq: VCYT), a South San Francisco, CA-based cancer diagnostics company, reached a definitive agreement to acquire C2i Genomics, Inc. a Haifa, Israel-based minimal residual disease (MRD) detection company.
Under the terms of the agreement, Veracyte will pay $70m in Veracyte shares at closing, and up to an additional $25m based on the achievement of future performance milestones over the next two years, payable in Veracyte shares or cash at Veracyte’s election.With the acquisition, Veracyte adds whole-genome MRD capabilities to its novel diagnostics platform and positions the company to expand its offerings along the cancer care continuum. For the fourth quarter ended December 31, 2023, as compared to the same period of 2022, Veracyte expects to report:For the full year ended December 31, 2023, as compared to the same period of 2022, Veracyte expects to report:Veracyte expects to report cash, cash equivalents and short-term investments of more than $215m as of December 31, 2023.Veracyte expects the upfront purchase price to be subject to customary balance sheet adjustments and the transaction to close in the first quarter of 2024.Led by Marc Stapley, chief executive officer, Veracyte is initiating 2024 testing and product revenue guidance of 13% to 15% growth, partially offset by declining biopharma and other revenue, resulting in total company revenue growth of 10% to 12%, or $394m to $402m. Further, 2024 cash, cash equivalents and short-term investments ending balance is expected to grow by 10% to 12%, in line with total company revenue growth, excluding approximately $8 million of one-time acquisition related items but including the expenses required to develop MRD assays.Led by Ezra Sofer, chief executive officer and cofounder, C2i Genomics has a whole-genome, artificial intelligence-powered approach that generates broad signatures from blood quickly and efficiently. The company’s MRD solution requires less than a tube of blood (as little as 3-4 ml blood, or 1-2 ml plasma), can go from sample to result in just two weeks, and delivers improved performance compared to imaging and other molecular tests. Veracyte’s first application of C2i Genomics’ technology will be a muscle-invasive bladder cancer MRD test, where it plans to leverage its strong urology commercial channel and a clear pathway to expected reimbursement. The company plans to develop further MRD tests in several of its focused indications.08/01/2023
