Veracyte, a leading genomics diagnostics company, has announced its acquisition of C2i Genomics in a definitive agreement. The acquisition aims to expand Veracyte’s diagnostics platform with the addition of whole-genome minimal residual disease (MRD) testing capabilities using artificial intelligence (AI) technology.
C2i Genomics specializes in MRD testing using liquid biopsies, specifically cell-free DNA (cfDNA) from blood samples. Their innovative MRD solution requires as little as 3-4 mL of blood or 1-2 mL of plasma and can deliver results within just two weeks. Compared to imaging and other molecular tests, C2i’s MRD testing has shown improved performance.
Under the agreement, Veracyte will pay $70 million in shares at closing and up to an additional $25 million based on future milestones over the next two years, payable in either Veracyte shares or cash.
One of the key advantages of C2i’s MRD testing is its ability to create circulating tumor DNA signatures using AI. By comparing the genomics of a patient’s tumor and blood, C2i’s solution eliminates the need for custom biomarker panels. When a patient undergoes a blood draw, whole-genome sequencing is performed to detect the circulating tumor DNA signature in the cfDNA.
Veracyte has been actively working on machine learning and AI algorithms for several years and has developed its own algorithms for noninvasive nasal swab tests for lung cancer. With the acquisition of C2i, Veracyte expands its AI capabilities and aims to track a tumor’s progression from early diagnosis to treatment and follow-up.
The integration of C2i’s technology into Veracyte’s platform will first be applied to a muscle-invasive bladder cancer MRD test. Veracyte plans to launch this test in the first half of 2026, leveraging C2i’s extensive research in the bladder cancer space and the clear path to reimbursement in this indication.
Marc Stapley, CEO of Veracyte, emphasizes the importance of evidence development in the cancer diagnostics industry. The acquisition of C2i, a whole-genome company, allows Veracyte to gather more clinical and genomic data, leading to deeper insights and increased adoption of their tests.
Veracyte’s long-term goal is to gain a significant share of the MRD market, which is projected to exceed $4 billion by 2032. By successfully launching and proving the clinical benefit of their tests in the markets they currently serve, Veracyte aims to expand into other indications, utilizing the knowledge gained from their ongoing efforts.
The acquisition of C2i Genomics strengthens Veracyte’s position as a leader in genomics diagnostics and enhances its capabilities in AI-powered MRD testing. With the potential to revolutionize cancer diagnosis and treatment monitoring, Veracyte is poised to make significant contributions to the field of precision medicine.
