What Veracyte, Inc. told the SEC could break it.

Veracyte procures reagents, equipment and other materials used to run its genomic tests — and components for its sample-collection kits — from sole suppliers, some of which are unique/non-substitutable, and relies on sole-source providers for kit components, instruments and associated services. A concrete instance is its reliance on NanoString (now Bruker Spatial Biology) for components and raw materials for the Prosigna test and nCounter service kits. If it cannot find replacements or transition to alternative suppliers, its ability to perform tests and generate revenue could be materially impaired, and it could incur higher one-time switching costs.

“We procure reagents, equipment, and other materials that we use to perform our tests from sole suppliers. We also purchase components used in our collection kits from sole-source suppliers. Some of these items are unique to these suppliers and vendors.”

Through its 2024 acquisition of C2i (a Tel Aviv-based oncology-diagnostics company), Veracyte has R&D operations and key employees in Israel (including a Haifa site) supporting its minimal residual disease (MRD) strategy. Conflict in the Middle East could interrupt or suspend this site without warning — via physical damage, impaired facility access, utility disruptions, restrictions on movement, or mobilization of Israeli-reservist employees to active duty — disrupting development and launch of products and impacting business continuity.

“We have operations located in Israel, and conflict in the Middle East and any additional escalations of hostilities may cause interruption or suspension of this site without warning, or otherwise negatively impact the global economy or our business.”