NEW YORK – Veracyte said Monday that it has reached an agreement to acquire C2i Genomics, a minimal residual disease (MRD) detection company that has developed a test platform using whole-genome tumor sequencing to create individualized assays for cancer recurrence detection and therapy response monitoring.
Veracyte expects to buy C2i for an upfront purchase price of $70 million in its own shares, subject to customary balance sheet adjustments, and up to an additional $25 million, based on the achievement of future performance milestones over the next two years, payable either in shares or cash at Veracyte's election. The transaction is expected to close in the first quarter of 2024.
Veracyte CEO Marc Stapley said in a statement that the company believes C2i's platform can "enable earlier detection of MRD and recurrence than imaging and other molecular tests, resulting in better patient outcomes, with faster results and smaller sample requirements."
"MRD detection and monitoring is a large, rapidly growing space that provides critical information to physicians and their patients," he added.
C2i's MRD assays require less than a tube of blood and can yield results in as little as two weeks. According to Veracyte, its first application for the platform will be in muscle-invasive bladder cancer but other indications are also in the works.
Along with the acquisition, Veracyte also announced preliminary Q4 2023 financial results, which include total quarterly revenue of between $95 million and $96 million, an increase of between 18 percent and 20 percent compared to the same quarter of 2022, and total test volume of approximately 34,000, up 21 percent year over year.
For the full year ended Dec. 31, Veracyte said it expects to report total revenues of $358 million to $359 million, up 21 percent from the prior year, and total test volume of approximately 127,000, an increase of 24 percent from 2022.
Veracyte said it expects testing and product revenue growth of 13 percent to 15 percent in 2024. Offset by declining biopharma and other revenue, the firm predicted that this should result in total revenue growth of 10 percent to 12 percent, or $394 million to $402 million, in 2024.