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Veracyte Increases Proposed Maximum Offering Price on IPO; Q3 Revenues Rise

NEW YORK (GenomeWeb News) – Veracyte today increased the proposed maximum aggregate offering amount for its planned initial public offering to $81.1 million.

In an amended Form S-1 filed with the US Securities and Exchange Commission today, the molecular cytology firm also announced its preliminary third quarter financial results.

Veracyte said in the SEC filing that it expects to offer 4.7 million shares at a price between $13 and $15 per share, with the intention of raising net proceeds of $58.7 million at the midpoint price of $14 per share.

Veracyte announced its plans to go public last month with a maximum aggregate offering price of $74.8 million. It intends to list on the Nasdaq Global Market under ticker symbol "VCYT."

Morgan Stanley, Leerink Swann, William Blair, and Cowen & Co., are listed as the offering's underwriters. Veracyte has granted them the option to purchase up to 705,000 additional shares of its common stock to cover any overallotments. If the underwriters exercise their option in full, net proceeds are anticipated at $67.9 million.

The South San Francisco, Calif.-based company also announced preliminary revenues for the three months ended Sept. 30, of between $5.5 million and $5.7 million, up from $3.2 million a year ago.

The revenue gains are primarily the result of increased adoption of its Afirma Gene Expression Classifier gene expression test. The 142-gene signature test is for assessing thyroid nodule fine needle aspirate (FNA) biopsies that are neither clearly benign nor malignant based on cytology review.

FNAs received during the recently completed quarter increased to 12,417 from 7,052 in the year-ago period, Veracyte said.

The firm's loss from operations for the third quarter is estimated to be between $5.9 million and $6.4 million, compared to a loss of $4.9 million in Q3 2012, the company said.

Veracyte ended the quarter with about $15.4 million in cash and cash equivalents.

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