18 hours can seem a very long time on the markets. Yesterday evening, the FTSE All-Share closed down more than -3%. Only to then to jump 4%+ today after President Trump did a welcome 180 degree pirouette on his 'trade deficit reduction tariffs (excl China), for at least 90 days anyway.
Similarly, there was marvellous news this morning from advanced kidney transplant diagnostics firm Verici Dx (VRCI) who said it had received US Medicare coverage for its flagship blood test Tutivia. Thus allowing the company to invoice and recognise sales for Q1'25 (292 units, est $774k) and 2024 (334 units, est $885k) respectively at $2,650 each.
Plus, going forward, this best-in-class diagnostic could theoretically be used to help up to 100,000 kidney transplant patients per annum worldwide (est TAM >$200m). Here, the test plays a crucial role in helping improve patient outcomes, providing relevant information for immunosuppression management and supporting clinical decisions.
CEO Sara Barrington commenting: "The achievement of this key milestone reflects the exciting work that is ongoing at Verici Dx and the quality of its science. Securing a positive MolDX coverage decision will improve patient access to the Tutivia assay, advancing both availability and adoption. With this decision, we hope that more patients can benefit from a significant step forward in enhancing diagnostic accuracy and post-transplant patient care. With Tutivia already seeing strong positive feedback from early adopters and the accelerated sales already coming through, we look forward to continued success in a commercial setting."
So what are the next steps?
Well, after receiving this formal Local Coverage Determination, VRCI will now seek to raise fresh capital over the next 3 months - which house broker Singer Capital Markets reckon could be c. $5m in order to extend the cash runway until mid 2026.
Lastly, regarding guidance, the Board anticipates FY24 revenues of $3.3m and adjusted LBITDA of -$5.4m. For FY25, Singer Capital Markets is forecasting revenues to climb to $4.4m, with adjusted LBITDA coming in at -$4.7m.
Onwards and upwards.
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