Veracyte Adds Another Stream to Bladder Franchise, UBS Says
Veracyte (VCYT) is adding an adjacent product to its bladder franchise following its acquisition of Convergent Genomics, UBS Securities said in a Monday note."We view this as a strategic move by VCYT to expand menu ofofferings into urine-based monitoring," the note said.Late Monday, the company reported the Convergent acquisition for $150 million upfront, plus up to $30 million in milestone payments tied to reimbursement.The deal adds Convergent's UroAmp urinary tumor DNA platform, the note said, adding that it has been clinically validated in non-muscle invasive bladder cancer for therapy-response monitoring and post-treatment surveillance."While revenue contribution is likely a few years away, the addition of UroAmp reinforces our Buy rating and our view that VCYT has multiple growth levers capable of supporting long-duration double-digit revenue growth," the report said.Price: $41.18, Change: $-0.03, Percent Change: -0.07%
