It’s all systems go at kidney transplant diagnostics firm Verici Dx (VRCI) .

Indeed, after completing major validation studies, its two flagship blood tests have already demonstrated significant clinical benefits in terms of improved performance, actionable insights, and shorter timescales.

In essence, VRCI's 'RNA signature' technology can more accurately assess (re 79% Positive Predictive Value for Tutivia) the risk of organ rejection before damage has actually occurred. In comparison, most (if not all) of other rival tests rely on measuring 'debris' in the bloodstream, and so can only appraise rejection risk after a donor part has been harmed, which is often too late.

In fact, so good is VRCI's first-of-its-kind Clarava prognostic that it was licensed in Nov'23 by healthcare giant Thermo Fisher to exclusively develop an assay for pre-transplant kidney testing.

Here Clarava will enable doctors to identify those patients (pre graft) most likely to require increased monitoring - such as adjustments in the type, dose and duration of immunosuppressants. This is particularly important when handling deceased donor parts, which provide >60% of transplanted organs and have a higher degree of rejection risk.

Elsewhere, the agreement also grants Thermo Fisher the sole right (but not obligation) to manufacture, distribute and sell the prognostic worldwide, alongside providing it with access to a portion of VRCI's proprietary urine samples – further highlighting the value stored within its treasure trove of research assets.

In return, Verici Dx is paid an upfront fee and staged payments which in aggregate should be worth $5m - excluding further potential ongoing royalties if successful.

To me, the partnership not only represents another industry endorsement of Verici Dx's top notch science, but also alongside the Jan'24 $6.5m fundraise, extends VRCI's cash runway into 2026 and provides the Board with options to move deeper into this type of capital-lite licensing model.

Elsewhere, its post-graft test Tutivia is already being sold in the US and offers similar advantages over and above existing standards of care.

Sure, it's early days wrt commercialisation as FY23 sales came in at $1m. Yet equally, revenues (source Singer CM) are forecast to jump to $7.5m and $13.0m this year and next - with VRCI coming profitable in 2025 ($1.3m EBITDA).

Lastly, validation study data from its 3rd kidney transplant test Protega should be available in H1'25, and Singer CM have a target price of 20p/share.

CEO Sara Barrington commenting: "2023 was a transformational year with excellent strategic progress resulting in the successful transition from a research-focused entity to a commercial-stage company."

"The focus throughout the rest of 2024 is to advance multiple growth and value creation initiatives, whilst maintaining our strong financial discipline."

 

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