Veracyte Partners with Johnson & Johnson to Advance Early-Stage Lung Cancer Screening

Recently, VCBeat (WeChat Official Account: vcbeat) learned from foreign media that Veracyte has announced a long-term strategic collaboration with Johnson & Johnson and the Johnson & Johnson Lung Cancer Initiative to advance the development of novel diagnostic technologies for detecting lung cancer at earlier, more treatable stages. This partnership will create new life-saving interventions based on “field of injury” science, enabling the detection of lung cancer–associated genetic mutations through simple airway brushing samples.

Pursuant to the terms of the agreement, Veracyte and the Johnson & Johnson Lung Cancer Initiative will collaborate based on a clinical research cohort comprising more than 5,000 patients and associated clinical data outcomes. As part of this collaborative cohort, Veracyte will provide bronchial and nasal clinical samples obtained through clinical trials from its lung cancer-specific biobank, deploy its whole-transcriptome RNA sequencing platform, apply high-dimensional data and machine learning pipelines, and deliver the most comprehensive genomic content. Furthermore, this genomic content will be made available to the Johnson & Johnson Lung Cancer Initiative for therapeutic purposes.

This collaboration is expected to accelerate two key lung cancer projects at Veracyte: first, the development of a non-invasive nasal swab for early lung cancer screening; and second, the commercialization of the Percepta Bronchial Genomic Classifier, which is based on a whole-transcriptome RNA sequencing platform. As a result of this partnership, the classifier may become available in the first half of 2019.

“We are delighted to partner with Johnson & Johnson and its Lung Cancer Initiative in the fight against cancer,” said Bonnie Anderson, CEO of Veracyte. “This strategic collaboration further strengthens Veracyte’s pioneering position in lung cancer diagnostics and highlights our promise in advancing science and methodology in this field. As we accelerate the development of our product pipeline, we believe this partnership will enable us to capture an additional $20–30 billion in market opportunity within the global lung cancer diagnostics sector.”

Anderson continued, “We anticipate that this collaboration will increase Veracyte’s total monetary and non-monetary value by more than $50 million. The monetary value includes a $5 million upfront payment and up to $15 million in potential future milestone payments. The non-monetary value is reflected in the clinically significant cohorts that Veracyte will gain from this collaboration. Additionally, under this agreement, we expect our biopharmaceutical services revenue to increase by approximately $5 million in 2019.”

Lung cancer is the leading cause of cancer-related deaths worldwide. In the United States, lung cancer causes more than 154,000 lung cancer-related deaths each year. Due to the difficulty in screening for lung cancer before it metastasizes, only 16% of cases are detected at an earlier, more treatable stage. The five-year survival rate for lung cancer is only 18%, much lower than that of other common cancers. Approximately 80% of lung cancer-related deaths are caused by smoking.

Veracyte is a leading company in the genomic diagnostics industry, primarily improving patient care by providing solutions to complex clinical challenges. The company’s products ingeniously combine advanced genomic technologies, clinical science, and machine learning to offer diagnostic and therapeutic recommendations to physicians and patients, thereby avoiding costly and risky surgeries. Since its founding in 2008, Veracyte has launched three genomic diagnostic tests, targeting thyroid cancer, lung cancer, and idiopathic pulmonary fibrosis, respectively.

Johnson & Johnson is the world’s most comprehensive and widely distributed manufacturer of healthcare products and provider of health services. Founded in 1886, the company’s products are sold in 175 countries and regions, with its production and sales spanning multiple sectors, including consumer care products, pharmaceuticals, and medical devices and diagnostics.

The Lung Cancer Initiative at J&J is a long-term program launched by Johnson & Johnson. Aligned with J&J’s vision of “A World Without Disease,” the initiative collaborates with lung cancer research institutions to advance technologies for the prevention and treatment of lung cancer.