Yahoo Finance Veracyte's (VCYT) New Findings to Advance Thyroid Cancer Care
Veracyte, Inc. VCYT, a leading name in cancer diagnostics, is set to showcase compelling data from three studies demonstrating the capabilities of its Afirma GRID (Genomic Resource for Intelligent Discovery) tool at ENDO 2024 from Jun 1-4. These findings promise to enhance the personalization of thyroid cancer treatment, marking a significant step forward in the molecular testing landscape.
By enhancing the depth and accuracy of molecular testing, Veracyte's Afirma GRID tool is poised to play a crucial role in the ongoing effort to personalize cancer treatment, offering hope for better patient outcomes in thyroid cancer care.
Currently, Afirma GRID is a research-use-only tool.
Beyond Gene Mutations
Traditionally, molecular testing in thyroid cancer has concentrated on identifying whether a nodule is benign or malignant and detecting specific gene mutations. However, the new studies leverage Afirma GRID's whole-transcriptome approach to uncover novel molecular signatures and alterations. According to Veracyte’s medical director of endocrinology, these insights could provide more granular, prognostic information, aiding clinicians in tailoring treatment plans to the unique molecular characteristics of each patient's tumor.
Key Study Highlights
The first study, led by Dr. Sara Ahmadi from Brigham and Women’s Hospital, retrospectively analyzes mRNA (messenger ribonucleic acid) expression-based signatures related to thyroid tumor invasion and metastasis. The second one, presented by Dr. Rabail Sadiq of Johns Hopkins University, investigates the expression of prostate-specific membrane antigen in indeterminate and malignant thyroid nodules. The third study by Matthew A. Loberg from Vanderbilt University examines the correlation between cancer-associated fibroblasts and aggressive thyroid cancer behavior. These studies collectively underscore Afirma GRID's potential to unlock deeper molecular insights that can revolutionize thyroid cancer treatment.
A Few More Words on Afirma GRID
The Afirma GRID tool, through its extensive database encompassing more than 21,000 expressed genes from nearly 200,000 thyroid nodule patients, facilitates advanced research and understanding of thyroid tumors. This capability supports the evolution of more precise and individualized care strategies, aligning with Veracyte's mission to transform cancer diagnostics and treatment.
Afirma Portfolio's Growth Trajectory
Veracyte’s comprehensive Afirma solution, consisting of the Afirma GSC (Genomic Sequencing Classifier) and the Afirma Xpression Atlas, efficiently addresses the complex landscape in thyroid nodule diagnosis. The combined offering aims to provide physicians with clinically actionable results from a single fine needle aspiration or FNA biopsy. An estimated 600,000 people in the United States are said to undergo this procedure each year.
Afirma GSC and its predecessor, the Afirma Gene Expression Classifier, have been featured in more than 140 peer-reviewed published studies. The testing is recommended in top medical guidelines and is covered for more than 275 million people with Medicare or commercial health insurance in the United States. About 14,000 Afirma test results were reported by the company in the first quarter of 2024, along with a 14% uptick in revenues, which aligned with its expectations.
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Meanwhile, Veracyte is gaining market share for the test as more people become aware of the compelling evidence supporting its quality and performance. In addition, Afirma can potentially offer vital information to nearly 15,000 patients with Bethesda V cytology diagnosis, who are now included in the system’s broadened recommendations for molecular testing.
For 2024, Veracyte’s growth strategy for Afirma includes making continued efforts to drive penetration into both existing and new physician accounts. The company has started to see a favorable dynamic for the test in rural areas and is also working with MolDX on a draft LCD to cover thyroid nodules to testify cytology, expanding access to patients who could benefit from it.
Market Prospect
Going by a Grand View Research report, the global thyroid cancer diagnostics market, valued at $2.4 billion in 2019, is projected to witness a CAGR of 5.5% from 2020 to 2027. This growth is driven by the rising prevalence of thyroid cancer, particularly among Caucasian women aged 20-34, and the increasing emphasis on early diagnosis and treatment. Technological advancements in diagnostic tools and heightened governmental initiatives and research funding further bolster market expansion. Despite being relatively uncommon, the increasing incidence and early detection efforts highlight significant growth prospects in this sector.
Share Price Performance
Over the past year, shares of VCYT have declined 16.7% against the industry’s 12.1% rise.
Zacks Rank and Other Key Picks
Veracyte currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader medical space are Hims & Hers Health HIMS, ResMed RMD and Medpace MEDP. Each of the stocks sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
Hims & Hers Heath stock has rallied 84.8% in the past year. Earnings estimates for the company have risen from 10 cents to 18 cents for 2024 and from 23 cents to 32 cents for 2025 in the past 30 days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it posted an earnings surprise of a staggering 150%.
Estimates for ResMed’s fiscal 2024 earnings per share have moved to $7.64 from $7.43 in the past 30 days. Shares of the company have decreased 3.2% in the past year compared with the industry’s fall of 1.3%.
RMD’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.8%. In the last reported quarter, it delivered an earnings surprise of 10.9%.
Estimates for Medpace’s 2024 earnings per share have moved up to $11.29 from $10.53 in the past 30 days. Shares of the company have surged 87.6% in the past year compared with the industry’s 5% growth.
MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.8%. In the last reported quarter, it delivered an earnings surprise of 30.6%.
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