Veracyte (VCYT) reported double-digit revenue growth across its flagship genomic tests and outlined plans to expand its bladder cancer portfolio through the Convergent Genomics acquisition during a September 15 presentation at the Morgan Stanley 24th Annual Global Healthcare Conference.
CEO Marc Stapley and CFO Rebecca Chambers addressed analysts Jacob Dodd and Kallum Titchmarsh on the company’s growth trajectory, profitability targets, and pipeline developments.
Decipher revenue grew approximately 20% in the second quarter of 2026, driven by high-risk and intermediate-risk volume expansion at similar rates. Low-risk Decipher growth was moderated following a late-2025 update to National Comprehensive Cancer Network guidelines, with the company now guiding single-digit full-year growth in that segment. Afirma revenue rose 17% to 18% in the same period.
The company’s universal transcriptome assay is expected to contribute roughly 300 basis points of top-line growth in 2026.
Payer mix remains split differently across tests. Decipher, priced at $3,800 per test, covers approximately 215 million lives, with about two-thirds of volume coming from Medicare Advantage and one-third from commercial payers. Afirma, priced at $3,600 per test, carries the inverse mix—roughly one-third Medicare Advantage and two-thirds commercial.
Prosigna, launched commercially earlier in 2026, received an initial Medicare price of $2,500, valid through December 31, 2027. The code is expected to crosswalk to the Afirma pricing tier of $3,600 on January 1, 2028, with full Medicare coverage anticipated by year-end 2026 or shortly thereafter.
UroAmp, a urine-based test for early-stage non-muscle invasive bladder cancer, is targeted for commercial launch in late 2028. The asset has been in development for a decade, supported by nine publications and 40 abstracts, and its clinical utility study is complete and ready for publication and technology assessment.
The Convergent Genomics acquisition adds UroAmp to Veracyte’s existing bladder cancer portfolio, which also includes the tissue-based Decipher Bladder Genomic Classifier and the blood-based TrueMRD minimal residual disease test. Laboratory operations will relocate to Veracyte’s San Francisco facility, and the deal adds roughly 20 employees. The non-muscle invasive market addressable portion for UroAmp is estimated at approximately $400 million.
"Convergent fits perfectly into our strategy of expanding across the care continuum in an indication where we already have two tests," Stapley said. "We can serve the entire bladder cancer patient journey—from early-stage non-muscle invasive disease through muscle-invasive cancer with TrueMRD."
On profitability, Chambers stated the company targets 25% adjusted EBITDA margin long-term, with 2026 guidance around 26%, reflecting current outperformance. Veracyte stock closed at $41.21 on September 15, up $0.34 or 0.83% after hours, with a current ratio of 9.16.
Stapley also highlighted OPTIMA trial data, noting that two-thirds of breast cancer patients—including premenopausal women and those with high nodal involvement exceeding three nodes—may not require chemotherapy, based on Prosigna results.
Across its full portfolio, Veracyte serves roughly 330,000 prostate cancer patients annually through Decipher, approximately 225,000 breast cancer patients through Prosigna, up to 250,000 bladder cancer tests per year, and about 180,000 Afirma tests, approaching a combined annual potential of nearly one million tests.
