Verici Dx announces delay to Medicare determination for Tutivia test

11th Oct 2024 11:50

(Sharecast News) - Verici Dx, a developer of advanced clinical diagnostics for organ transplants, announced an extension to its timeline for submitting supplemental information to the US Centers for Medicare and Medicaid Services in support of coverage determination for its 'Tutivia' test.

The AIM-traded firm said the process was now expected to continue into the first half of 2025, delaying revenue recognition for the test from 2024 to 2025.

Despite the delay, the company said its cash position at the end of the year was expected to align with market expectations.

While initial clinician reception of the Tutivia test was described as positive, Verici said adoption had been slower due to the lack of comprehensive insurance coverage.

It expected that once insurance coverage was established in 2025, test volumes would increase significantly.

In the meantime, the company's partnerships and licensing revenues remained on track, with contracts now expected to generate revenue in 2025 rather than in the fourth quarter of 2024.

As of 30 September, Verici Dx reported a cash balance of $6.1m, with the board saying it was maintaining a disciplined approach to cost control.

"Local coverage determination is important to our commercial strategy, and we are actively working with the assessment team to expedite the approval process," said chief executive officer Sara Barrington.

"While this delay pushes back our short-term revenue expectations, our long-term outlook remains positive as we continue with the adoption of Tutivia."

At 1100 BST, shares in Verici Dx were down 7.69% at 6p.

Reporting by Josh White for Sharecast.com.