Veracyte, Inc. Morgan Stanley 24th Annual Global Healthcare Conference

Yeah, happy to. Before I get into that, maybe I should just remind everybody about our safe harbor statement to the extent we make forward-looking statements. You can find that in its full on our website at www.veracyte.com. Convergent, great acquisition for us. Obviously, we've talked for many years about a strategy of expanding the care continuum in the indications in which we play, adding new indications, like for example, you saw us do that with breast in the U.S., and then expanding across the geographies as well. Convergent fits in perfectly into that strategy of expanding across the care continuum in an indication in which we currently have two tests already, and that is bladder cancer. Bladder cancer is a large and important disease that is being studied a lot more these days.

The standard of care needs some diagnostic assistance, and that's where we come in with biomarkers, including the UroAmp that we acquired from Convergent, which importantly is a urine-based biomarker. So now Veracyte has urine, tissue, and blood-based testing in bladder cancer. We can serve the entire care continuum of bladder cancer from that early-stage patient with, for example, Ta disease, non-muscle invasive, all the way up to muscle-invasive bladder cancer with TrueMRD. That, being able to serve the patient at multiple time points and longitudinally follow that patient with our data-driven strategy, is why this makes sense for us. Now, why this time? This is the perfect time because that team over 10 years has done an incredible job studying that analyte and solving a very difficult problem of the signal-to-noise in urine-based testing. They're very close to the point of commercial launch.

We're going to launch the first test in late 2028, and they've done all the clinical work, nine publications, 40 abstracts, and so on. So a perfect time for us to come along with our channel, and this is an important one because it's a channel synergy in urology as well, and drive that commercialization.

The other added benefit of the timing right now is we have seen more and more data coming out of the Decipher Bladder Genomic Classifier or for the Decipher Bladder Genomic Classifier, which is up front of this test. Our efforts on the Decipher Bladder Genomic Classifier in terms of the commercialization will ramp up over the next couple of years, so that will effectively. We want to own the tissue from the get-go, and that will effectively allow us to do so, and then play nicely into either non-muscle or muscle-invasive pathways that Marc described.

Yeah. There are multiple clinical questions that you need to answer for a patient with bladder cancer. Like I said, from that early stage, and as Rebecca mentioned, you do the TURBT procedure, you've got tissue. It's looking at the subtype and what does that tell you about the prognostic outcomes for that patient to giving them BCG or other IVT treatment, and is that treatment actually working? So monitoring that treatment as you're providing that treatment over the first or multiple cycles to when you finish that treatment, has that treatment actually resulted in elimination of the tumor, or is there residual disease to either other treatment or surgery, cystectomy, for example, monitoring for residual disease in that state as well, which is much more of a blood-based solution. If you think about it now, these tests really don't overlap.

You've got in the non-muscle invasive, urine is the best analyte. In muscle invasive, clearly blood is the best analyte, and then you need tissue for the subtyping, as I mentioned.

Yeah. So on a revenue basis, obviously Mark cited the channel synergies, which are important, as are the back-office operational synergies, whether that be the customer service billing or laboratory. Excuse me, we'll be moving the laboratory into our San Francisco facility, and so there'll be nice synergies there, obviously incredibly qualitative because this isn't a synergy play, this is a revenue growth play, and this is absolutely something that we're investing in for the long-term potential for the benefit of patients and shareholders. So we're excited about that piece. And when it comes down to the guidance statement, obviously we're in the late stages of diligence when we did the earnings call, so we effectively were able to take into account the investment. The investment is, call it, 20-ish people. And so it's not a material investment.

They've already done their clinical utility study that needs to be effectively submitted for publication and for the Technology Assessment process. So, I would say this is an incredibly reasonable investment in addition to obviously the M&A purchase price, to allow us to really go after an incredibly large market here. We're calling it roughly around $400 million for the non-muscle invasive portion of disease that UroAmp could potentially address. And there's a ton of optionality that's even larger than that, and we'll get into it, I'm sure, across hematuria, prostate, kidney, UTUC, and other various diseases. So we're pretty excited about this one, I'm not going to lie. And I think the return on the investment will prove out to be quite attractive.

2026 has been an incredible year for us and it really caps off, at this point, five years of transforming the company from a single product company to a real portfolio of cancer tests in now four indications with the addition of Convergent. Obviously prostate, thyroid, breast, and bladder cancer. Two product launches so far this year, breast and TrueMRD, and an acquisition now. It is very clear that we are extending and expanding our strategy and playing it out the way we talked about five years ago when we really sat down and thought about what could the future of Veracyte be, and we are not done. We are continuing to develop new tests, new indications, always looking at M&A.

With the financial profile that we have as a company, that we have also created in that five years, we have got the wherewithal to do what we need to do to continue to grow and scale the business. The whole thing is, as I always say, I think investors are used to hearing me say this, fueling by incredible evidence developments, which is really what drives our business, researching around increasing the understanding of these different disease states, and we always believe in that. The more you understand the disease state, the more you figure out, let the science lead you and figure out where diagnostics has a role to play, and then we are there ready, poised to launch the test for that particular indication, get into guidelines, and drive adoption.