Veracyte discloses IPO details and boosts maximum offering

Veracyte disclosed more details about its planned initial public offering and also upped the stakes, raising the proposed maximum from just under $75 million to over $81 million. Separately, the molecular diagnostics maker and 2013 Fierce 15 winner touted positive preliminary results from a trial that would expand the use of its thyroid cancer gene expression test.

The San Francisco, CA, company said in an updated S-1 filing that it will offer 4.7 million shares priced between $13 and $15 per share.

In late September, Veracyte filed plans for an IPO worth as much as $74.8 million, just a few months after completing the final tranche of its $28 million Series C round. Then, and now, Veracyte has focused on accelerating the commercial launch of its Afirma Thyroid FNA Analysis test, which combines a specialized cytopathology assessment and gene expression test to figure out if a thyroid nodule is benign or a cancer suspect.

Veracyte has made steady progress with the test. Launched in 2011, Afirma is co-promoted by Sanofi's ($SNY) Genzyme. And over the summer, Veracyte won an agreement from insurance giant Aetna to cover the diagnostic test.

Adding to the momentum, the company recently made an appearance at the 83rd Annual Meeting of the American Thyroid Association in San Juan, Puerto Rico, to discuss promising preliminary results for a study that would expand the use of its core technology. Veracyte said that the data suggest an RNA-based gene expression test could accurately detect the BRAF V600E gene mutation in thyroid nodule fine needle aspiration samples. Being able to detect the specific mutation in a thyroid nodule malignancy could help shape specific surgery plans and targeted treatments, the company noted.

Veracyte CEO Bonnie Anderson

"We believe these preliminary findings demonstrate a potential opportunity to enhance our Afirma Thyroid FNA Analysis solution as a comprehensive way to manage thyroid nodules," Veracyte President and CEO Bonnie Anderson said in a statement. "These data suggest that we may be able to provide physicians with additional information pre-operatively that can held further guide their surgical strategy, when surgery is needed."

Veracyte, when it goes public, expects to 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 is now one of several diagnostic and medical device companies that have either filed for an IPO or gone ahead with their initial public offerings, including Oxford Immunotec Global, CardioDx, Biocept Laboratories, Foundation Medicine ($FMI), LDR and Tandem Diabetes Care.

- here's the amended S-1
- check out the clinical trial announcement

Special Report: 2013 Fierce 15 - Veracyte

Sponsored By Metabolon

Five Translational Insights Key to a Successful First-in-Human (FIH) Study – Metabolite-Based Biomarker Discovery and Validation

Translational success rates from pre-clinical animal studies to human clinical trials remain frustratingly low. Learn how metabolomics helps you bridge between the theoretical & practical, between the function & actual activity of your drug molecule to get you closer to the phenotype, sooner.