Veracyte Scoops Up Decipher Biosciences For $600M, Reports Fourth Quarter Interim Results
- Veracyte Inc (NASDAQ: VCYT) has agreed to acquire Decipher Biosciences, a precision oncology company focused on urologic cancers, further solidifying Veracyte's position in the genomic cancer diagnostics market.
- Veracyte will pay $600 million in total consideration, consisting of $250 million in cash and up to $350 million in stock.
- Decipher Biosciences' 2020 sales grew by more than 130% year-over-year to roughly $39 million to $40 million. Genomic test volume for the year was between 15,500 and 16,500.
- Veracyte expects the acquisition of Decipher Biosciences to significantly accelerate its revenue growth in 2021 and be accretive to Veracyte's gross margins. The transaction is expected to close by May 2021.
- Concurrently, Veracyte reported interim fourth-quarter results and sees revenue between $34 million and $35 million. Expected product & testing volume could be between 13,000 and 13,200 tests for the quarter, growing 16% Y/Y and 14% Y/Y at the midpoint of the range, respectively,
- For the full year of 2020, VCYT expects sales between $117 million and $118 million, product and testing volume between 44,400 and 44,600 tests. The company expects to end the period with cash and cash equivalents of between $345 million and $350 million.
- VCYT shares closed 7.1% higher at $65.03 Tuesday.
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