VCYT - Earnings call transcript Q4 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, ladies and gentlemen, and welcome to the Veracyte's Fourth Quarter and Full Year 2018 Financial Results Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded. I would now like to turn the conference over to Angie McCabe, Veracyte's Vice President, Investor Relations and Corporate Communications.

You may begin.

Angie McCabe

Thank you, Katherine. thanks fourth us XXXX quarter and discussion for financial everyone, our of and afternoon, for today joining a results. Good full year Chief our today Officer; and Chris Chief me are Anderson, President Chairman With Officer. Bonnie Hall, our Keith Financial Chief and Kennedy, Operating Officer; and Veracyte's Executive

to I under include various forward-looking as you defined statements this that we begin, remind during will Before we securities call laws. applicable would like that may make statements

strategy, regarding expectations differ they and in Forward-looking quarter no refer achievements XX, and historical the the in and provide by updates future the other our during forward-looking performance for subject statements. release that the will will risks factors these may from contained our financial statements, statements the in cause so filings or materially those uncertainties Please discussed a such February on to and statements pipeline, growth, risk goals our public guidance future assumptions, not press of company's correct any on forum. further opinions forward-looking give product and can results and we XXXX with the to prospects or events assurance and SEC important actual of do statements those unless regarding and are company's attributes expectations, include to results, included discussion cause that factors to performance, from be and/or materially differ facts. Management's any prove performance not guidance, implied or actual forward-looking plans, and to reflected that drivers are company may results and/or reimbursement,

Relations results, releases Prior are comparable at the in reconciliation year during be will this their Investor under appendix this fourth to on Please press veracyte.com most and GAAP announced measures in to for call, our available of a measures our we directly financial release the earnings section. call. XXXX quarter which financial non-GAAP our refer these discussed Additionally, measure. to website full section

which during will available on section over Bonnie our I Keith is Relations also the website. a Anderson, now We the With will presentation, our Investor remarks. This call presentation turn of Presentations that to his financial reference Events in website Veracyte & under CEO. published also

Bonnie Anderson

one Angie. year on you, This full you afternoon genomic positions continued XX% us a the growth outlook million and And an today was provide us you we full-year transformative prior very over joining million XXXX believe and for in XX,XXX nearly fourth thank our over Cash an Veracyte burn as XXXX quarter which test Thank XXXX an XXXX for increase for of we a everyone $XX of revenue XXXX excellent of was am and XX% to and year that improvement year XXXX. results report the XX% our pleased over beyond. with volume I discuss increase for $XX.X year. we and full representing reported of XXXX XXXX. for

particularly Our robust closed year. strong the we XXXX as fourth reflecting out quarter were momentum results

of million are increase range position strong With the quarter and was we the of XXXX driven will growth as we which burn over to & additional $XXX accomplishments range as afternoon an received cash includes in an XX% this the net as biopharmaceutical well Keith Then growth our share and at generating color thoughts guiding our January XX% highlight last this I on of million. compared the million $XX.X some stage revenue Our year million of Also in our out $XXX of XXXX. we XX% improvement enter $X.X cash by quarter. that represents results million we in to Keith to used a revenue year. drivers as the by this laying catalyst I'll key collaborations. financial XXXX on million milestones $X more detail the are speak will three his year. to year from in guidance midpoint operating the XXXX of to with and over in of products, Johnson At over million midpoint was and cash for fourth year's our commercials XX% remarks, This we XXXX. represents the last Johnson add revenue a our This full-year fourth will prior the improvement of XXXX $X full-year activities in of strategic that review growth close achieve and business to $X expect our guiding

start review by year which a performance. we for will key with XXXX. each with them. metrics entered highlight our measure the our five of of would achievements Let's I We

of commercial XX% And XXXX accounts accounts. multiproduct results more sales a of are Percepta. and than our using of XX% experienced or is our was using number first more Percepta growth, also The that quarter than fourth Envisia our the about our the accounts growth and multiproduct of We demonstrates working. from third to strategy Afirma are XX% quarter Afirma sequential either

more part platform GSC transcriptome and sequencing genomic classifier help Afirma pleased we are us of our runs diagnosis. getting unnecessary the GSC. fibrin with avoid our of business, to we sequencing the even leverage and building are with on to The the sales cancer In surgery the equity RNA approach. patients Afirma we are customers whole enables transitioned our cross We brand or flagship as all

targeted Percepta we XXXX classifier year of in expression its of note classifier comprehensive reported for year fibrin in test XXXX diagnosis, XXXX, Afirma XXXX also which treatment choices to the commercialization. us alteration the was solution tests in lung We believe reported test full Afirma exceeded cancer leadership gene this the nearly hundreds for guide on including our physician enables extends Atlas first Xpression help We of In the diagnostic market. our introduced inform first cancer which Of broad therapies. commercialization. Afirma decisions gene to full

the ordered the sequentially XXXX test. to by third XX% than ever end of and had volume institutions XXX more from fourth the at the genomic of physicians XXX the quarter year Percepta Importantly, accelerated

brand awareness We unprompted for conducted ourselves for is This surveyed XXXX. impressive at are name research continued about asked year of stage. internal rate lung Percepta early driving well growth also could among physicians showed in testing pulmonologist up setting diagnosis. last cancer that Notably Percepta our when strong XX% genomic in an this

build Turning access physicians for tests Medicare demand a Classifier winning receive an Envisia to commercialization from program foundation to strong final laid Genomic to the coverage. address we We which upon the early launched for May once last their patients. we

are including Cleveland as program University Clinic, the Los leading centers Medicine sites University and Emory XX California School today, and in among the of such others. Angeles Tulane As of participating of

pleased in-network very for plans was major progress year Early in are genomic service that expansion we a with ever most Next the and and of last reimbursement entered health into labs and a lab XXXX. only Anthem we now we made believe number we contract are achieve. accomplishment with small

drive to accomplishment adoption and and reimbursement further addition will Percepta classifiers. this helping facilitate Afirma In believe we Envisia reimbursement to and of coverage our

program. for Medicare we through Additionally the MolDX the draft classifier received Envisia coverage in August

Medicare the decision We Envisia continue of fibrosis XXXX. in early or make final a to to would idiopathic diagnosis milestone coverage commercially improved turn I make companies scientific to our positive third test also pulmonary available Medicare success one IPF of classifier by for be which for was very of now will coverage expect the first and This Veracyte few innovation. would achieve genomic the covered three tests. measure to and

to the which sequencing we business innovate our platform most we believe The transcriptome future. RNA whole to of value enables During our into ability develop to specific sample. the deliver questions. we platform classifiers our transitioned that that learning will drive answer XXXX and we us clinical genomic non-surgical deploy each to amount Then whole from our maximize expertise machine content of extract patient

selection we at this guide using further expand providing rich surgery and continuum information help Additionally the time care genomic strategy therapy diagnosis. content along the same can all of to

scientific TRK information is Loxo fusions we alterations we an advance targeted to biopharmaceutical through agreement with attracted for announced providing their cancer RET seeking Our Oncology medicine. use them also in therapies. on with April, fibrin platform and are to developing which cancers with In precision company

XXXX, we and Johnson value. estimated we & monetary in nonmonetary were to thrilled Johnson our which of with of will million $XX an collaboration Additionally contribute innovation expect January announce

We continuum have and nasal detection innovative operations. the inform believe to and cancer of detect questions more whole To Through lives science. opportunity when diagnostic of injury up market for transcriptome a of the globally. to opens continuity the lung for than up along field basis the to advance we first can cancer is Percepta development our sequencing opportunities early with lung This Most more teamed we platform. laboratory of novel will accelerate exciting test $XX J&J swab at test our saved. clinical partnership, using early estimate care our its be test in transition clinical billion the other the our we efficiency provides acceleration also

also help endocrine GSC’s patients with success We evidence the the to data the approximately next-generation thyroid ability GSC Afirma were practice indeterminate development surgery surgery May keep test's XX% reinforce our XXXX. demonstrating fourth publication results in nodules of of performance subsequent clinical Afirma strong published utility. for in in and measure the with A delivered clinical validation In JAMA suite. out of

consistently real showing year. These XX Afirma that key results throughout at is studies the validation performing also the presented findings. the with study clinical three We GSC Afirma conferences included endocrinology presentations world

we For in early Percepta, clinical the registry presented Chest at Meeting October. our results from ongoing utility

lung of decision-making at at its clinical time Envisia near that Also from to the data in test Our We IPF the findings data without forward interstitial distinguish showed changed help the look up we procedures to present to surgery. demonstrating point future. invasive every cross reduced need diseases in the publication evaluation for XX a for testing. ability months classifier these validation Chest, other and clinical

over measure cash discipline. to XXXX efficiency of a million final XXXX. was our demonstrated financial in success burn improvement reducing Our excellent XX% $XX.X We operational

over We will guidance. over on the I financials profitable detailed so turn of now we for continue long-term. call that to sustainably achieve the financial our growth the XXXX Keith review more will focus management and can to disciplined

Keith Kennedy

you, Thank Bonnie.

of year remarks and mentioned I fourth available Angie earlier our will the XXXX review is afternoon, full regarding under quarter This our section with in presentations guidance. financial XXXX As Relations conclude year website. and our presentation full results Investor XXXX our quarter and fourth events and

page fourth to our key performance the are with bottom for quarter X as of of or burn metric of as cost performance KPIs excluding X.X quarter XXXX of year's the million expenses million Turning revenue compared of for revenue highlights financial prior XX%. of at Gross XX%. page indicators against the of improved tests presentation, select financial six follows: of including margin our each XX%. XX% and XXXX million XX% points. cash loss XX%. increased increased increased Operating increased basis X.X of volume Genomic reported XX.X Net improved XXX the

cost XXXX year to the to which operations compared sequential cash a basis XX%. full performance and as KPIs X same our our XX,XXX the XX%. six Genomic improvement Net page, and the million as Page products Page as Gross volume outline as for million follows; of presentation, XX.X of fund resulted Operating results performance genomic improved XX% in XX% revenue of to money on are burn. expenses XX%. XX our underlying well the margin the of improvement KPIs of increased continued annual each burn improved The cash our year-over-year of reported basis points. a and how against margin XXX pages shows increased million against Turning revenue tests next significant across the of XX XXXX. volume saw with the same few next KPIs We increased year loss prior revenue increased acceleration gross financial for shareholder discipline quarterly observations. and XX%. X excluding use and and of six six we The

in the an Page which turning in year growth basis quarter one products. increasing highlights XX% First we to rates year Page a in the X XXXX of XX% first relative in prior accelerated the year. prior ramping the adoption company compared volume revenue annual the our genomic for three pivotal to on to XX% of X the quarter from accelerated to fourth

As Bonnie we this to mentioned, expect momentum carry into XXXX.

believe we our we As seize and look for ahead, further additional biopharmaceutical scale business opportunities continue collaborations. can we

through selling margins annual to by sequential and services expanded Turning tests We X, assay can this moving the which discipline. sample our basis. on we performed a products our principally gross same on Page achieved an higher multiple margin test and financial maintaining unified to be

sales activities investment Turning and marketing. in to on XXXX, we our our Page X focus spend revenue in generating primarily

revenue and of spend under the our to XXXX, spend Our quarterly to was a as XXXX R&D $XX improved million. page. our In right on expenses G&A are side revenue. shown percentage XX% operating From just of this XX% XXXX, average of from of combined combined

net Page to fourth full-year improved with XX, the year XX% prior the XXXX compared respectively. and XX% quarter loss and Turning period our for

to burn basic annual XX% discussed Our an diluted as improved share sequentially common year as Page respectively. we've And the and on and net prior our cash compared improved basis. loss already XX% XX, on and per

fees of Page cash to loan XX, December our from January, & $XX.X elected XXXX. XX% our million million our total was also In Johnson prepayment interest-bearing million Turning under without approximately principal XXXX we at debt In from triggering prepay of received debt agreement. in January XX, Johnson. XX, unchanged we September upfront any XXXX, or $XX payments $X balance to

our remarks at and year. Bonnie revenue to XXX XXX the of midpoint to the XXXX as a of last guiding represents XX% increase Page XX in Turning we're guidance, stated million This range. her over earlier million to

over guiding using year. cash operating net are operating is cash in remains to of cash for instead capital-intensive, range XX% also a and represents burn cash net use. to $X before to the non-GAAP breakeven flow year. the activities cash believe a expect improvement achieve Since us a goal appropriate of we end GAAP metric this last key this We is positive Generating activities measure a operating to flow more business of measure a used our $X the in used we midpoint million not at of million

Some on revenue from we & collaboration X guidance million additional in and flow includes anticipated the Johnson our color expect our following: cash revenue XXXX, with Johnson.

revenue the genomic to XXXX to positive in layering impact expect trends seasonal from products multiple XXXX. continue in in We volume trends in the positively

margins impact we stable range XX% excluding within may to that the to We biopharmaceutical be the revenue XX% of expect recognize.

efforts. approximately our sales increase our and to investment We marketing in million quarter to support $XX expect growth per spending to $XX million

expected combined financial focus our With of million. band Our million Bonnie G&A I'll we spend milestones spend quarterly and around $X and well-positioned believe is stay $XX over on financial continued and execution achieve within the average operational to profitable R&D and approximately strong we our long-term to to call XXXX. turn back for to now the are discipline, position discuss growth. strategy

Bonnie Anderson

of value speaking in Thanks to the Keith. transformative I call today's our three will business. by close creation levers

three in revenue to stages advance large is markets. clinically First to our strategic investment impactful products generating

classifiers market-leading Our positioned a a They near first term. the expected addressing decision Afirma, and Envisia than Envisia more Medicare in opportunity coverage by billion covered final $X market products. all Percepta and as are to pending positive and be market for will

over on continuum on as gives these who us from significant answer Strategically diagnosis downstream and the products in already decisions. this layering and time the positioned disease. leverage Importantly anticipate at and all sample same driving value to care operating relative we patient of with care diagnosed the improved clinical the for questions years, five same clinical the the growth revenue of of efficiency effects focus more to have that early been next tests opportunity other patients nonsurgical

advance sequencing platform tests is Second discovery, clinical as This effective biopharmaceutical whole RNA is serves as our for in our which scientific platform of we indication. partnerships and programs machine to a commercialization competitive believe same innovative efficient as utilizing differentiator. a learning and development the basis and well for transcriptome development

our to the value products over the platform for clinical care this differentiated long-term. incredible we which a our strategy will move deliver to continuum decision Our believe indications with expansion Veracyte clinical position very along in

development of by XX% detection backdrop, by we for which success XXXX focus nasal early globally. by over XXXX billion to $XXX we of first million growth creation full addressable will is to million of the our revenue these: Against $XX XX% believe our indicated four strategic compelling to on swab volume metric genomic first as to pulmonology year market the cancer Finally driven year. pipeline value third $XXX revenue growth total lung per led expands our this test guidance our our of level

validation data Second expansion. as important and which publications utility additional to stages growth we is evidence of forecast reimbursement clinical development early drive of commercial and expect is extremely

nine leave on of a plan adventures. sad I for operations, in applause functional would sales all a are of want years operations laboratory of that me including his round leader. everyone date him We are great building led a build year moment And listening strategy to and nasal very at today with make well the launch detection first acknowledge next-generation Veracyte announcement. through Third, on capable our financial a responsibilities this now to key amazing eye spend of company resources we to COO our wish being client by you successfully marketing, new transitioning areas an billing retirement now discipline, we retiring use and Chris Hall, our family. time our helping year drive like and early this an X swab advancement of Percepta on finally lung to we important his test Chris continue and we more for while on profitability on pipeline will valuable as to our take sales our to thank Chris. near I we After revenue strong cancer your midyear true towards executives of to everyone multiproduct for very into and data contributions President want to his will incredible classifier. behalf which are the very efficient to including Join a will pathway see Chris’ of I nine July be Veracyte and to services, years today him on growth. managed-care, with of sign

and and are thrilled summary, results about XXXX So we produced beyond. excited are really the XXXX we in with in

capabilities of the further lives, continued execution our treatment save expanding value diagnostic believe operational informed the and to shareholders. through accuracy approach this well as decisions. improved our health and patients, physicians, will We we continue early for advance disease more drive as are even We and system to discipline, detection care to that financial

this Finally will their for be I'd the like without work would to that operator Veracyte employees the we today. to hard thank ongoing of in we position their and I dedication in ask focus not creativity all now call our are for up open questions. exciting

Operator

BTIG. from with comes our And Ji Nam Instructions] question first [Operator Sung

line Your is open.

Sung Ji Nam

Thanks for contribution. congratulations you and taking questions and the thank your for Chris

customers, know you it might increase but this who for your an early starting customers So maybe procedure have using while? a using for been bronchoscopy I off among if are be in the among Percepta who those Percepta or are seeing anecdotally even

Bonnie Anderson

you why Chris that. take don't

Chris Hall

Well I non-malignant to of that's We've think been that's the because the chunk position core do really procedures that and invasive that that the bronchoscopies a is overall of resolve embraced. less are value been good product proposition. the excited been we

think surgical challenges TTNA always sometimes I with than one lung the would which biopsy say patient that's the be been a lung bronchoscopy always mean happening. goes more diagnosis is rather that make it's or straight more believe straight that successful we've of a go too to And product my to but cancer a bronchoscopy. to successfully use that invasive start, early procedures to

just we're proposition core at I of excited stage think that product that the embraced. value is being the this really

Sung Ji Nam

have from the KOLs is only this a from - product like the from And you I very then Europe beginning. I'm feel where not engaged also U.S. on this if correctly, but Envisia remembering

commercial there kind was wondering as are that strategies putting commercial be if but early be was curious might also there standpoint if efforts a guys of here underway could any you together? are So from

Bonnie Anderson

four a interesting a we trying ILD And had diagnosed. participation we've Europe think to products. sites I we is care to drive in experts there of first about these We where of and in that excellence was of ramped meeting from month patients physicians because of advisory early demand Yes, and the access mostly of get - trial it’s community a have our our lot hold physician that This in for did did board is three scientific in XXXX clinical small Europe. of program all a because product ago.

we've in have far that certainly So to the markets to something outside we’re U.S. spending go at been to looking to of but hesitant always too no get we up while it's after immediate not out front plans that. open new

focused increased there. finalized ramping and XX Medicare I decision we’re think more price in sense do then the through perhaps whether test the offering of we see now established so broadly getting methodical the And we’ll to the make few right now have sites on of by up from or goals on our XXXX. - this near-term a focus would not some think And early access we’re I in that groundwork XXXX. to expansion getting

Sung Ji Nam

And this missed for me but it question then pharma a for from incremental there lastly I is sorry Oncology just services? Loxo contribution from year housekeeping Keith, if

Chris Hall

million million are what million we $X revenue X million So expecting it return X X will be and XX,XXX in per biopharmaceutical we another quarter. had from year. so J&J last That’s we've said

Operator

next with SVB Leerink. Puneet question Souda Our from comes

open. is line Your

Puneet Souda

the on we’ll definitely all and congrats work, for Bonnie you. miss the great Chris thanks quarter

first could X on in the any just just want or expecting longer that to million of I clarify the clarify if contribution So, in one of there you you're have is year? XX million J&J baking to XXXX I that only part that additional you're term. later want potentially ask

Keith Kennedy

year. update That’s throughout you the right we’ll

Puneet Souda

you layer wanted And then we And expect nasal would to of should when - of of venue this here. how I compared this follow-up Percepta have should as quick in a data just on But be term what gave and in benchmarking data then understand Percepta just well? this the be data be on you sort with just we elaborate of data. swab Bonnie sometime sort of should could sort

Bonnie Anderson

risk and J&J positioned not product always to performance development the sure the early we improve patients be on, as Percepta. can program our that set trials and involved a will us, to at in early or know but for so to we the either Is follow-up sensitivity, they be unveiled - further is are procedures what this in the involve about the reveal say nodules. little meeting gets data This a of in to different of some from clinical this am hold pathway think time halted those when first we I'm a usually and first special like really good that we data is bit usually goals And we I then patients couple it a our swab to Percepta those be we care year. the will the what would I because which CT be year that that know goes product the tests. a for I we’ll very unveiled. we looks show of invasive more with see discovery sometimes position low I that on with as get places more high different detect or clinical folks. sure looking will ability at unfold whether There unveil will last if half have for clarity classifier by followed well data in Yes with envision we opinion that developing key positioning nasal test is meeting leaders

Puneet Souda

you’re know on a thought I exit year Percepta that on X,XXX to at you just and Percepta so started with then XXX. you the out And will a exiting XXX

a closer it and market this entrant pathway reason, of of the the the wanted you're contribution ask how one just get is to are I from the to to liquid reasons biopsy in the through a Percepta looking XXXX new more in you overall different position a pulmonologist here this. So I and think sense at and

try some market you're the biopsy? of us in So enter positioning about maybe thank a educate liquid from just thinking And you. they entrants new as Percepta with how to

Bonnie Anderson

care. Yes, talk things a really I test the to but always the as of well about – is we integrate not a believe lot do company, just standard of that we we development of that out of the today's test how think the into our figuring one one

require where to a really at the is and So to it that lot it believe point what And then a a is was what standard not like to get adds doctor in lung today doing doesn't the value positioned test with think do might our an diagnosis. today that of doctor important more it in do they the cancer Afirma as I procedure to is aggressive cancer care even program. the of

hear. we anecdotal pretty was on physicians reaction of want exciting in news lung and the the our so XXX from the XXX more. they they that were always the actually told doctors was we think them get with with ordering in one And now in but shared of help of thought asking just excited prepared meaning point product. team number the to form for the doctors the they last of it what are them came I used the just product just some institutions quite us the a future We so days where current that totally remarks cancer across and more meeting things data These few off

we you care its tests a look and think that number in that’s and think are complement you small, a to of order cancers yield position of that are I overall when small combine the procedure only improve our companion missing on XX% stuff bronc When reduce Percepta we focus with having invasive sensitivity. for. procedures about the to kind

as we in when come missing the one of cancer. if to be it’s if of cancers you terms good procedure certainly not in to and especially than better were have advance So that

journey from along. might the think we also today. on have any results So these in that of patient then consent talk data that tests year people the on performance high very five Medicare year, studies so on year weekly that we for follow about patient four plus realize come backside to the to coverage that already three, of a and a a collect at is place, This data IR new bar time in get studies all this being that I decisions. deliver length having can to sets we're it the takes these

uptick. really are feel really, getting that we good significant we So

could we at and would XXXX that to a coverage it get positioned I expand around were XXX happy if final and And Our that year, double Medicare e roughly with color just to we in bit will course Percepta months. we of you we’d ended from in what probably early we volume And we a right more in customers where little would like of exit look XXXX coverage a commercial couple are XXXX that look would of reimbursement as takes that over what the we the terms pleased tests expect XXXX in be XXXX. that we some gain next XXXX to behind this revenue of traction continue that really thought would and there drive are think payers. And Envisia product the would that we in expect year course be. assumes to

at So of experience look how and the now to to and these products within sticky just sort in not key to takes us get institution it, we and operation of that that doing become how what work that's allows that's volume ramp we the a it part have lot the but of out volume success.

Operator

from our Paul Montgomery. question Knight And [Operator with next comes Janney Instructions]

open. is line Your

Paul Knight

in on congratulations and the you quarter the year much are service the expecting on XXXX? retirement? Congratulations How

Bonnie Anderson

revenue? service Biopharma

Paul Knight

Yes.

Bonnie Anderson

best includes announcement then We estimate now J&J on in guidance be the that to in of first would addition at of that be is that $X that the milestones And treatment back think and about some XXXX. higher the those of the and from of that $X revenue the will that. total milestones about million recognized our but the of we the depending X million of given half of deal about of structure timing in J&J spoke a estimate some this on directional at point. the in majority it So we of that could financial million achieved the

Paul Knight

Percepta? J&J and long fit test made Bonnie in biopsy guess has generations feel new of fit generation And with next in house the to a with in that do investment technologies someday I market. continuum it X for billion over say of is large your swab do, you tests the biopsy technology Auris How of I also should the with

Bonnie Anderson

think to quite today to being quite and to will cancers. investment of is get earlier up earlier end where all the at and be are these party about across effort what it. think area the a treating offering compelling diagnosing of will early And and out it excited you lung a cancer was happen compelling think as initiatives I we I

And size at be so any also surgical at do those nodules but we’ll many and and couldn’t J&J's invasively, device. depending by earlier cetera et looking the of through nodules. to And earlier on can site be bronchoscopy less efforts ways moving less they reached procedures

were market the for what really look are to and is the space size that in and from going I with time. position many done these stage like nasal going will up be think represent teamed programs cancer are testing trial four ago. the five consumer discovery very in and to stage likely the where So that on early over our of market with us When they cohorts and new now cancer of in of going unfold transformed J&J going this being eye to as detected to position validation years not think detection be is going and lung modernly like we is I program as years to for with a a of same be patients cancers company our their were s that that clinical lung leading changes three be oriented

So we’re pretty excited it. about

Paul Knight

do not the could better still a And in traditional sensitivity conjunction can biopsy? also do can biopsy lastly Percepta I not a if does I I Bonnie what is it If of biopsy require. use

Bonnie Anderson

Well because us as exactly rationale answer. XX% to from XX% and save to describes reason on institution center, positioning the biopsy Percepta the quality the we the the to course anywhere every the a it, of that’s by depending the care give be nature sensitivity and complement KOLs by behind bronchoscopy of we providing can procedure physician a and as biopsy of our one an biopsies do

and that today they're having and confidence stop a in they comfortable develop not we’re new confident So what test having do that. replaces doctors doing in to

what today to new it scientific because better. a tests in and introduce they increasing overall that our users build across into is indications of the we’re that new just think are able and that's smart markets tests test way leaders our doing road we evolve We’re test And confidence to doing to thought is making we these be with portfolio. might credibility exactly differently. our down so what lung And that positioned bring and cancer the are

Operator

question next our And comes from with Brian William Blair. Weinstein

Your open. line is

Brian Weinstein

so congratulations him to as Chris bumped that you he congrats. you is on to I the already retirement is retirement. [indiscernible] touched, beat know

of asked has here. a just think ones quick I couple but So a lot been

will just you you Keith guys that can with the a for bit there? on elaborate a little that you're the investments need you what grow planning you specific specific on that bit are more XXXX value doing little on XX% to for First be can

Keith Kennedy

sales putting investing into and again in covered as our money the remarks. I marketing prepared We’re year of another

quarterly around We’re spending on million, $XX $XX.X of basis million a last year.

and to found nice force in We return to provides XX going million touching very XX this investing sales physicians. We’re ordering million that the physicians year. a and

where continuing lever. that's we're so And to on that push

Brian Weinstein

you Xpression And and contribution at be can kind I it do have longer idea that do move said getting coming about beyond, is that you you're of then with technically higher even you are any the and XX% think that that. point you you where do thoughts how us on that orders feedback of move Afirma year how term? Atlas, this about give and GSC any should next kind or of But seeing

Bonnie Anderson

the XX% classifier having roughly XX% of it to of we in a of terms and patients thyroid do test benign well way that think sequencing those about is going genomic Yes, are to the so in percentages when be suspicious extend you suspicious Xpression the consideration. that XX% where that's from and will be patient be not guide because whether therapies the most will targeted a the could ones the of surgery a or other will Atlas benefit today patients,

is And so and on that want better Xpression but super driving orders being end of we in Atlas those with we it the number would to a that sure benign up care. not super, to never ordered make gets get coming high, do quality what expect of to those patient

new, we We that and a of actually have still time of out early I was January/February. rolled meeting do at always just the think coming Atlas. the in on end that Xpression lot the think material is sales that I massive and a very evidence data material new it’s year this out new brand have national new and beginning the

revenue I over And those it in orders So may product the as XX%/XX% we think up of benefit the those so could getting will can edge key terms the up that of this we do track in patients from will Afirma time get way don't getting not be testing. that it We and sort sense? separate as benefit. be to just you that going orders into that piece, the our with product sort and we an Does that And a perhaps and pick kind the overall but all do end GSC magnify simple it revenue things. track of and bill, incremental to other. wrong each it weeds number be just many keeps of product too can assumptions makes genomic these

Brian Weinstein

that strong for and Thanks solid congratulations sense. on the detail a total really good makes Yes, on XXXX.

Operator

conference. questions. I’m to today's everyone today's thank like conclude This you. for Thank in participating does And further We program. no would showing

disconnect. all Everyone day. You great have a may

Veracyte (VCYT) 25 Feb 192018 Q4 Earnings call transcript