Dx maker Veracyte files planned $75M IPO

Molecular diagnostics company Veracyte filed plans for a proposed IPO that could reach close to $75 million, becoming the latest life sciences operation this year to eye public company waters.

The California operation announced its proposed initial public offering on Sept. 20, less than three months after it completed the final tranche of its $28 million Series C round. That money was slated to propel an expanded commercial push for the company's Afirma Thyroid FNA Analysis, which launched initially in 2011 and is co-promoted by Sanofi's Genzyme. It combines a specialized cytopathology assessment and a gene expression test to determine if a thyroid nodule is benign or suspicious for cancer. In another major milestone over the summer, Aetna, the nation's third-largest insurer, agreed to cover Afirma.

The S-1 states Veracyte would use $20 million for sales and marketing, $20 million toward research and development costs, and that the remaining proceeds would go toward general expenses and potential acquisitions. Veracyte would trade on the Nasdaq under the symbol "VCYT."  Morgan Stanley and Leerink Swann are joint book-running managers for the offering, and William Blair and Cowen and Company will be co-managers.

Veracyte's revenue surpassed $11.6 million in 2012, up from $2.6 million in 2011, according to its regulatory filing. The company's net losses surpassed $18.6 million in 2012, versus more than $14.4 million in net losses during 2011. Revenue in the first six months of 2013 reached $9.4 million, versus $3.9 million during the first half of 2012. But net losses already surpassed $13.3 million from January through June 2013, versus an over $8.8 million net loss over the same period in 2012.

Major investors in Veracyte include General Electric's ($GE) GE Ventures arm, Domain Associates, Kleiner Perkins Caufield & Byers, TPG Biotech and Versant Ventures. Overall, the company has raised more than $56 million to date, including a $28 million Series B that closed in 2010.

- here's Veracyte's release
- check out the full S-1
- here's the Silicon Valley Business Journal's take

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