Why Veracyte, With 55% Growth In 2024, Is An Outlier In Cancer Diagnostics

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Veracyte (VCYT) is in an envious position for any company — and particularly for a diagnostics player. The medical equipment firm is profitable. And Veracyte stock is reflecting recent enthusiasm, ...

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And Veracyte stock is reflecting recent enthusiasm, ...</p>\n\n<a href=\"https://www.investors.com/research/the-new-america/veracyte-stock-vcyt-medical-equipment-cancer-diagnostics/\">Source Link</a>\n\n</div>\n","source":"investor_business_daily_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Veracyte, With 55% Growth In 2024, Is An Outlier In Cancer Diagnostics</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Veracyte, With 55% Growth In 2024, Is An Outlier In Cancer Diagnostics\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-12 23:39 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/research/the-new-america/veracyte-stock-vcyt-medical-equipment-cancer-diagnostics/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Veracyte (VCYT) is in an envious position for any company — and particularly for a diagnostics player. The medical equipment firm is profitable. And Veracyte stock is reflecting recent enthusiasm, ...</p>\n\n<a href=\"https://www.investors.com/research/the-new-america/veracyte-stock-vcyt-medical-equipment-cancer-diagnostics/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4139","symbol_name":"生物科技","start_time":0,"source_url":"https://www.investors.com/research/the-new-america/veracyte-stock-vcyt-medical-equipment-cancer-diagnostics/","article_id":"2491362633","we_media_id":null,"thumbnails":["https://www.investors.com/wp-content/uploads/2024/12/NEWAM_cancer_121324_adobe-150x150.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2491362633","pubTimestamp":1734017978,"columns":[],"sourceInfo":{"source_id":"investor_business_daily_highlight","name":"Investor’s Business Daily"},"weMediaInfo":null,"summary":"Veracyte is in an envious position for any company — it's profitable. Veracyte stock has rocketed more than 55% this year.","collect":0,"end_time":0,"defaultTopTitle":"investors.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4139":"生物科技","VCYT":"Veracyte Inc"},"translate_title":"为什么Veracyte在2024年增长55%，是癌症诊断领域的异类","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VCYT":1},"content_text":"Veracyte (VCYT) is in an envious position for any company — and particularly for a diagnostics player. The medical equipment firm is profitable. And Veracyte stock is reflecting recent enthusiasm, soaring more than 55% this year.\nThe South San Francisco-based company got its start in 2008 to tackle myriad challenges in cancer diagnosis and treatment. Today, it's best-known for its prostate cancer test, Decipher, which helps diagnose and parse treatment options.\n\n\n\n↑\nX\n\n\n\n\nHow To Buy Stocks: Bases And Buy Points\n\n\nSee All Videos\n\n\n\n\nNOW PLAYING\nHow To Buy Stocks: Bases And Buy Points\n\n\n\n\nDuring the third quarter, Veracyte reached an adjusted earnings before interest, taxes, depreciation and amortization margin of 24%. This measure known as EBITDA, is widely used to examine a company's overall profitability. Veracyte's long-term goal is to reach 25%.\n\"We're clearly on the path to 25%,\" Chief Executive Marc Stapley told Investor's Business Daily. \"I think that is a really important milestone for companies in our space. And so many, now, are starting to talk about positive cash flow generation and profitability. That's a new era for diagnostics and it's important because it will fuel the innovative new tests of the future.\"\nVeracyte Stock: 300,000 Prostate Cancer Patients\nVeracyte's tests span a number of cancers, including prostate, bladder, lung, thyroid and breast. They also run through the continuum of care, from early detection and diagnosis to prognosis and finding the right treatment option for the right patient.\nDecipher, however, is the biggest driver of Veracyte stock today. Stapley estimates there are 300,000 patients with prostate cancer in the U.S. alone. After their initial diagnosis, only about a third receive a molecular diagnostic test like Decipher. That means two-thirds of patients are moving ahead with treatment options that might not actually work.\nIn September, Veracyte unveiled new results from its study called Stampede. Researchers followed 1,523 patients with advanced metastatic prostate cancer for a median of 14 years.\nThey found patients with higher Decipher scores — a genetic biomarker that assesses the risk of prostate cancer spreading and death — were more likely to die. For those patients, treatment with a chemo drug called docetaxel and an androgen deprivation therapy reduced the risk of death by 36%. Androgens are male hormones that prostate cells use to grow and spread.\nPatients with lower Decipher scores didn't significantly benefit from chemotherapy.\n\"Treating a patient with chemotherapy who doesn't need it is a really devastating treatment outcome and then missing patients who would benefit is also incredibly troubling,\" he said. \"So, having a molecular test is better than a blunt tool like tumor volume to help you make that determination. (It) couldn't be more important when those patients are being treated.\"\nVeracyte stock rose roughly 2% following the September announcement.\nDecipher Tacks On Massive Growth\nDecipher sales rocketed 48% in the third quarter. That accounted for roughly 21,250 tests, up 36% year over year.\nIn the same three months, sales from its Afirma test climbed 19%. Veracyte sold nearly 15,100 tests, an increase of 12% vs. the prior-year quarter. Afirma is Veracyte's thyroid cancer diagnostic test.\n\nAcross all its offerings, Veracyte's sales surged 29% to $115.9 million, beating forecasts for $109.8 million, according to FactSet. Excluding one-time items, sales came in 2% ahead of expectations, William Blair analyst Andrew Brackmann said in a recent note to clients.\n\"While some investors may have wanted a bit bigger of a revenue beat (recent beats excluding one-timers had been averaging closer to 6%), we do not think they missed the whisper,\" he said. \"Even if they did, the profitability-cash generation eat into this pushback.\"\nBrackmann noted Veracyte also raised its sales outlook for the year by a bigger percentage than the third-quarter beat. The company now expects $442 million to $445 million in sales this year, growing 22% to 23%.\nManagement struck a confident tone regarding 2025, Brackmann said. He has an outperform rating on Veracyte stock.\n\"For the longer-term, it again noted this portfolio can bridge the company to a time when the company's three pipeline projects can then carry the mantle,\" he said. \"This bridge will consist of a differentiated growth and profitability profile, and we agree with management's assessment based on the current makeup of the portfolio.\"\nBlood-Based Cancer Test\nThe next big leg of growth for Veracyte could come from its efforts to develop a blood-based test looking for cancer recurrence. This would be a big leap from its current tissue-based approach.\nThese tests look for what doctors call minimum residual disease.\nTumor cells have their own unique \"signature,\" Stapley, Veracyte's CEO, told IBD. In many cases, they can detect that signature's return to a patient's body well before the cancer would show up on a standard imaging test like an MRI. In a paper published earlier this year, Veracyte said its test could detect the recurrence of bladder cancer by a median of 130 days over radiographic imaging.\nThat's a \"significant lead time,\" he said. It gives patients and doctors a better shot at coming up with an effective battle plan to tackle the cancer. The blood test aspect is also key. When a patient is undergoing a routine diagnostic test, there's usually a tissue sample — a biopsied nodule, for example. But a patient who has already undergone treatment doesn't want an invasive test to screen for the possibility of cancer.\n\"A blood-based test makes sense,\" he said. \"There's no tissue to test anyway. That's why this is the right paradigm.\"\nHighly Rated Veracyte Stock\nPart of Investor's Business Daily's medical-research equipment/services group, Veracyte stock has run up markedly in 2024. Shares recently broke out of an ascending base with a buy point at 41.43, MarketSurge chart analysis shows. Now, it's trading in the 5% chase zone, which goes up to 41.50.\nNotably, shares have a strong Relative Strength Rating of 95. This puts Veracyte stock in the top 5% of all stocks when it comes to 12-month performance, according to IBD Digital. The Composite Rating, a 1-99 measure of a stock's fundamental and technical measures, is a promising 93.\nFollow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.\nYOU MAY ALSO LIKE:\nNewAmsterdam Pharma Soars 41% On A Surprise Benefit From Cholesterol Drug\nUniQure Stock Doubles After Striking A Deal With The FDA For Huntington's Drug\nFind The Best Long-Term Investments With IBD Long-Term Leaders\nStocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks\nGet Stock Ideas From IBD Experts Each Morning Before The Open","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2491362633"}