AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- CMS Coverage Delay: Verici Dx’s Tutivia test faces a delay in Medicare approval, pushing revenue recognition to 2025.
- Financial Stability: Verici Dx maintains a $6.1 million cash balance and a disciplined cost-control approach, aligning with market expectations.
- Positive Long-Term Outlook: Despite short-term delays, Verici expects significant test volume growth once insurance coverage is secured in 2025.
Verici Dx (LSE:VRCI), a leading developer of advanced diagnostics for organ transplants, has announced a delay in the submission of supplemental information to the US Centers for Medicare and Medicaid Services (CMS) for its ‘Tutivia’ test. This extension will push back the anticipated coverage determination process into the first half of 2025, subsequently postponing revenue recognition for the test from 2024 to 2025.
The company remains optimistic about the long-term success of its Tutivia test, designed to support organ transplant diagnostics, despite the near-term delay. Verici Dx expects test volumes to increase significantly once comprehensive insurance coverage is secured in 2025. In the meantime, partnerships and licensing revenues, which were previously anticipated to contribute in the fourth quarter of 2024, are now expected to be recognized in 2025.
Verici Dx also reassured stakeholders about its financial stability, citing a cash balance of $6.1 million as of 30 September and a disciplined approach to cost management. The company reiterated that it is focused on expediting the CMS approval process to drive the broader adoption of Tutivia.
Chief executive officer Sara Barrington acknowledged the challenges associated with the delay but emphasized the company’s commitment to its long-term commercial strategy. “While this delay pushes back our short-term revenue expectations, our long-term outlook remains positive as we continue with the adoption of Tutivia,” she said.
As of 1100 BST, shares in Verici Dx were down 7.69%, trading at 6p.
The delay in revenue recognition has impacted the company’s short-term financial outlook, but Verici remains focused on expanding Tutivia’s adoption and achieving long-term success.
