Veracyte: How To Build A Molecular Cytology Company

Veracyte has launched a complex molecular diagnostic test in thyroid in record time and with impressive capital efficiency. It could be a model for high-value diagnostics, especially if the company can successfully adopt its approach in a broader market.

The molecular cytology firm Veracyte Inc. arose in 2008 out of Calderome, an incubator formed by West Coast venture capital firms Kleiner Perkins Caufield & Byers (KPCB), TPG, and Versant Ventures. As they did with their other endeavors in molecular diagnostics in the 2000s, the VCs emphasized the need to understand the pharmacoeconomics of a potential new diagnostic test early on and to have a clear vision of how the test could influence clinical decision making.

Veracyte held to these founding precepts in deciding on its first clinical program, the development of a complex gene expression...

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