Leerink Swann Reiterates a Buy Rating on VeracyteBy Ryan Adsit
“We reiterate our OP rating and maintain our PT of $12. Commercial Payers Still Key to Driving Adoption Ramp and Sales Longer-term. VCYT has successfully driven the Afirma adoption ramp by gaining multi-year commercial payer contracts on the back of solid clinical evidence — as 80% of Afirma volumes still comes from private payers. Afirma currently has 185M lives covered and $155M contracted with 25M of those lives in Blue Cross Blue Shield. Beyond that, for Afirma GEC, VCYT’s key priorities include securing a positive coverage decision for the largest Blues payer: Anthem (ANTM, OP) with its 40M covered lives, and converting other Blues payers to in-network contracts. Medicare accounts for only 20% of Afirma test samples and thus the eliminated impact was only ~$1.6M. Plus, with the new data that was released at the ATA meeting recently highlighting 70%-80% of specificity of the enhanced Afirma test, we believe VCYT should be able to get Anthem as well.”
According to TipRanks.com, Souda is a 1-star analyst with an average return of -9.9% and a 25.0% success rate. Souda covers the Healthcare sector, focusing on stocks such as Baxter International, Thermo Fisher, and T2 Biosystems.
Veracyte has an analyst consensus of Strong Buy, with a price target consensus of $10.
Based on Veracyte’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $18.6 million and GAAP net loss of $5.64 million. In comparison, last year the company earned revenue of $12.34 million and had a GAAP net loss of $8.95 million.
Veracyte, Inc. is a molecular diagnostics company which uses novel genomics to resolve the critical healthcare problem of diagnostic ambiguity. The company discovers, develops and commercializes molecular diagnostic solutions that enable physicians to make more informed treatment decisions early. Veracyte was founded by Bonnie H. Anderson and Y. Douglas Dolginow on August 15, 2006 and is headquartered in South San Francisco, CA.