After a challenging 3-4 years, prospects across the medical diagnostics industry appear to be improving as evidenced by increased M&A activity and rising valuations. Indeed only in Nov’25, Abbott Laboratories snapped up Exact Sciences, the maker of colon cancer test Cologuard for $23bn, or 6.2x EV/sales.
Sure these green shoots haven’t yet filtered down into UK small/microcap stocks, but I suspect this is only a matter of time.
Enter advanced kidney transplant diagnostics firm Verici Dx (VRCI) (Mrkcap £11m), who said in an upbeat FY’25 trading statement that it continued to deliver promising commercial traction, alongside inking a strategic agreement with Blue Cross Blue Shield Association (BCBS) of Illinois.
Revenues from its flagship kidney transplant test Tutivia jumped to $3m vs $0m in 2024. Granted this was slightly below expectations of £3.2m - albeit orders came in at $3.2m with volumes more than tripling to 1,173 units vs 334 LY.
More importantly though for investors, is that adoption is spreading across the US - as more doctors become aware of the Tutivia’s benefits, with 34 transplant centres now using the blood based diagnostic, representing 18% of kidney transplants.
Elsewhere, Verici Dx secured Medicare coverage, providing access to 68% of US transplant patients. Medicare approval is often the gatekeeper for broader acceptance, providing validation for clinicians and a benchmark for private insurers.
Such as today’s strategic agreement with BCBS of Illinois. Here Tutivia is now an in-network test for BCBS-covered patients in Illinois. Thus reducing the administrative friction for hospitals, lowering patient costs and enabling clinicians to use the service more routinely.
Moreover, BCBS operates as a federation with 118m members nationwide. Meaning by securing Illinois, Verici Dx has access to streamlined contracting processes with other BCBS entities, including large transplant markets like Texas. The agreement also spans multiple insurance categories — commercial, managed Medicaid and Medicare Advantage — broadening the reimbursable patient base from a single contract.
Finally, Verici Dx ended Dec’25 with net funds of $3.3m and $1.6m of receivables, supporting a cash runway into H2’26. Licence income fell to $0.8m ($3.3m LY) due to milestone timing with Thermo Fisher Scientific for their PTRA diagnostic (re Clarava).
CEO Sara Barrington commenting: “We are proud to have achieved substantial growth in FY25, reflected in the continued adoption of Tutivia and an increase in sales across the year. Whilst recognised Tutivia revenues of $3.0m were slightly behind market expectations for the full year, we continue to see strong testing volume acceleration beyond the $3.2m of orders received during the year. We are confident that our clinical and regulatory foundations will continue to show successful commercial traction across 2026 and beyond.”
Disclosure: Verici Dx is a Vox Markets client