Core Insights - Myriad Genetics, Inc. is a leader in molecular diagnostic testing and precision medicine, focusing on advancing health and well-being through innovative testing solutions [2] Group 1: Company Overview - Myriad Genetics develops molecular tests that assess disease risk and guide treatment decisions, significantly improving patient care and reducing healthcare costs [2] Group 2: Upcoming Events - Management plans to participate in the BofA Securities 2025 Health Care Conference on May 14, 2025, at 6:00 pm ET [3] - The company will also participate in the Goldman Sachs 46th Annual Global Healthcare Conference on June 11, 2025, at 2:00 pm ET [3]

Group 1 - Myriad Genetics (MYGN) has experienced a significant downtrend, with a stock decline of 49.5% over the past four weeks, but it is now in oversold territory, indicating a potential for a turnaround [1] - The Relative Strength Index (RSI) for MYGN is currently at 18.11, suggesting that the heavy selling pressure may be exhausting itself, which could lead to a reversal in the stock's trend [5] - Analysts have raised earnings estimates for MYGN by 11.1% over the last 30 days, indicating a strong consensus among sell-side analysts that could lead to price appreciation in the near term [7] Group 2 - MYGN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8]

Core Insights - A study published in JCO Precision Oncology indicates that Myriad Genetics' RiskScore tool effectively drives breast cancer screening recommendations tailored to individual patient risk levels [1][2][3] Group 1: Study Findings - The study titled "Association of Polygenic-based Breast Cancer Risk Prediction with Patient Management" highlights that polygenic risk predictors are relatively new, and there is limited data on their clinical application [2] - Results show that patients with a 20% or greater lifetime risk of breast cancer, as predicted by RiskScore or the Tyrer-Cuzick model, were significantly more likely to undergo enhanced screening [3][6] - The study reassures that patients receive appropriate breast cancer screening following RiskScore testing, indicating that clinicians are utilizing RiskScore results for risk-based screening recommendations [2][3] Group 2: MyRisk Hereditary Cancer Test - MyRisk Hereditary Cancer Test with RiskScore evaluates 48 genes linked to hereditary cancer risk, providing a personalized five-year and lifetime breast cancer risk assessment for patients of all ancestries [4] - The integration of family history and clinical factors, such as breast density, enhances the risk assessment process [4] Group 3: Company Overview - Myriad Genetics is a leader in molecular diagnostic testing and precision medicine, focusing on advancing health and well-being through molecular tests that assess disease risk and guide treatment decisions [5] - The company aims to improve patient care and reduce healthcare costs by leveraging molecular insights across various medical specialties [5]

Core Viewpoint - Myriad Genetics, Inc. reported a narrower adjusted loss in Q1 2025 compared to the previous year, but total revenues fell short of expectations and decreased year-over-year, leading to a significant drop in share price after the announcement [1][3][10]. Financial Performance - The adjusted loss per share was 3 cents, which was 40% better than the Zacks Consensus Estimate, while the GAAP EPS remained flat compared to a loss of 29 cents in the prior year [1][2]. - Total revenues decreased by 3.1% year-over-year to $195.9 million, missing the Zacks Consensus Estimate by 2% [3]. - Testing volumes increased by 1% year-over-year [3]. Revenue Breakdown - Hereditary Cancer testing revenues fell by 2% year-over-year to $86.3 million [4]. - Pharmacogenomics testing revenues decreased by 20% year-over-year to $31 million [4]. - Tumor Profiling testing revenues declined by 5% year-over-year to $29.3 million [4]. - Prenatal testing revenues increased by 11% year-over-year to $49.3 million [4]. Margin and Expense Analysis - Gross margin improved by 45 basis points to 68.5%, despite a 4.5% decrease in the cost of revenues [5]. - Research and development expenses rose by 10.4% year-over-year to $27.5 million, while SG&A expenses slightly decreased by 0.3% to $69 million [5]. - The adjusted operating loss was $29 million, compared to a loss of $27.9 million in the previous year [5]. Financial Position - At the end of Q1 2025, cash and cash equivalents were $91.8 million, down from $102.4 million at the end of Q4 2024 [6]. - Long-term debt increased to $59.3 million from $39.6 million at the end of Q4 2024 [6]. - Cumulative net cash outflow from operating activities was $16.3 million, an improvement from $18.6 million in the prior year [6]. Guidance and Outlook - The company revised its 2025 revenue guidance to a range of $807-$823 million, down from the previous estimate of $840-$860 million, reflecting challenges in the pharmacogenomics and hereditary cancer testing segments [7]. - Adjusted EPS guidance was also lowered to a loss of 2 cents to earnings of 2 cents, compared to the previous range of 7-11 cents [8]. Business Developments - The decline in GeneSight revenues was attributed to changes in UnitedHealthcare's coverage policy and a reallocation of marketing spend [10]. - The hereditary business faced challenges due to slower-than-expected electronic medical record integrations [10]. - Positive developments included growth in Prenatal testing and the upcoming commercial launch of an AI-driven prostate cancer test in partnership with PATHOMIQ by the end of 2025 [11].

Revenue Performance - Total revenue for the three months ended March 31, 2025, was $195.9 million, a decrease of $6.3 million (3.1%) compared to $202.2 million in the same period of 2024[90]. - Hereditary Cancer revenue decreased by $1.8 million (2.0%) to $86.3 million, while Prenatal revenue increased by $5.0 million (11.3%) to $49.3 million[90][94]. - Pharmacogenomics revenue fell by $7.9 million (20.3%) to $31.0 million, primarily due to a 22% decrease in average revenue per test[91]. Cost and Expenses - Cost of revenue decreased by $2.9 million (4.5%) to $61.7 million, with cost of revenue as a percentage of total revenue slightly improving to 31.5%[95]. - Research and development expenses increased by $2.6 million (10.4%) to $27.5 million, reflecting the company's commitment to innovation[96]. - Total operating expenses were $163.2 million, a decrease of $2.3 million (1.4%) compared to $165.5 million in the prior year[96]. Other Income and Tax - Other income (expense), net decreased by $2.4 million (120.0%) to $(0.4) million, primarily due to a prior period gain from the Precise Tumor acquisition[97]. - Income tax benefit for Q1 2025 was $29.3 million, with an effective tax rate of 99.7%, compared to an expense of $0.1 million and a rate of (0.4)% in Q1 2024[99]. - The effective tax rate for Q1 2025 was influenced by the release of unrecognized tax benefits related to tax refund claims[99]. Cash Flow and Financing - Cash and cash equivalents decreased by $10.6 million from $102.4 million as of December 31, 2024, to $91.8 million as of March 31, 2025, primarily due to $16.3 million used in operations[109]. - Cash flows used in operating activities improved by $2.3 million in Q1 2025, totaling $(16.3) million compared to $(18.6) million in Q1 2024[110]. - Cash flows from financing activities increased by $22.4 million in Q1 2025, primarily due to $19.5 million in incremental borrowings from the ABL Facility[113]. - As of March 31, 2025, the company had $60.0 million outstanding under the ABL Facility, with $41.9 million available for borrowing[105]. - The company expects to receive a tax refund of approximately $13 million during 2025, including interest, following the review of tax refund claims related to the CARES Act[103]. - The company experienced a decrease in cash flows from investing activities, which increased by $1.2 million to $(8.3) million in Q1 2025, primarily due to higher expenditures for internal-use software[112]. Leadership and Strategy - New leadership appointments include Samraat Raha as President and CEO, effective April 30, 2025[92]. - The company plans to continue investing in clinical evidence development to support existing products and the launch of new products like FirstGene and Precise Liquid[86]. - The company aims to enhance customer experience and expand sales channels, particularly into large health systems[86]. Risk Factors - The company is subject to covenants under the ABL Facility that may limit its ability to incur additional indebtedness[106]. - Approximately 7% of the company's revenue for Q1 2025 was denominated in currencies other than the U.S. dollar, primarily Japanese yen, exposing it to foreign currency exchange risks[117].

Core Insights - Myriad Genetics reported $195.9 million in revenue for the quarter ended March 2025, reflecting a year-over-year decline of 3.1% and an EPS of -$0.03 compared to -$0.01 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $199.96 million by 2.03%, while the EPS exceeded the consensus estimate of -$0.05 by 40% [1] Revenue Performance by Product - Prenatal revenue reached $49.30 million, surpassing the estimated $44.69 million, marking a year-over-year increase of 59.6% [4] - Hereditary Cancer revenue was $86.30 million, below the average estimate of $92.46 million, representing a year-over-year decline of 2% [4] - Pharmacogenomics revenue totaled $31 million, slightly below the estimated $32.46 million, with a year-over-year decrease of 20.3% [4] - Tumor Profiling revenue was $29.30 million, compared to the average estimate of $30.66 million, indicating a year-over-year decline of 5.2% [4] Stock Performance - Myriad's shares have returned -4.6% over the past month, contrasting with the Zacks S&P 500 composite's increase of 11.5% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Group 1 - Myriad Genetics reported a quarterly loss of $0.03 per share, better than the Zacks Consensus Estimate of a loss of $0.05, and compared to a loss of $0.01 per share a year ago, indicating a 40% earnings surprise [1] - The company posted revenues of $195.9 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.03%, and down from $202.2 million year-over-year [2] - Myriad shares have declined approximately 43.8% since the beginning of the year, contrasting with the S&P 500's decline of 3.9% [3] Group 2 - The earnings outlook for Myriad is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend for estimate revisions for Myriad is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $210.73 million, and for the current fiscal year, it is $0.09 on revenues of $845.32 million [7] Group 3 - The Medical - Biomedical and Genetics industry, to which Myriad belongs, is currently in the top 31% of over 250 Zacks industries, indicating a favorable outlook for stocks in this sector [8] - Wave Life Sciences, another company in the same industry, is expected to report a quarterly loss of $0.27 per share, reflecting a year-over-year change of -12.5%, with revenues anticipated to be $13.97 million, up 11.4% from the previous year [9][10]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $196 million, a decline of 3% year over year, at the lower end of the target range [7][10] - Excluding certain impacts, Q1 revenue grew 5% year over year [9][22] - Average revenue per test decreased by 4%, while test volume increased by 1% [22][23] - Gross margin improved by 50 basis points to 69% due to lab efficiencies [23][24] - The company updated its 2025 revenue guidance, lowering it by $35 million from the prior midpoint [10][28] Business Line Data and Key Metrics Changes - Prenatal testing revenue grew by 11% year over year, with strong demand for carrier screening and NIPS tests [12][18] - Oncology revenue declined by 2%, with MiRisk test volume growing by 11% year over year [15][16] - GeneSight revenue decreased by 20% year over year, primarily due to UnitedHealthcare's policy change [19][20] - Women's health revenue increased by 4%, driven by prenatal testing, but was partially offset by weakness in unaffected hereditary cancer testing [18][19] Market Data and Key Metrics Changes - The company faced challenges in the unaffected hereditary cancer testing market due to slower EMR integrations and workflow disruptions [13][14] - The overall demand for oncology tests remains consistent with 2024 trends, despite some confusion over updated NCCN guidelines [17][18] - The company continues to see positive momentum from breast cancer risk assessment programs, although they are not yet at scale [14][19] Company Strategy and Development Direction - The company is focusing on oncology as a cornerstone of its strategy, aiming to serve the continuum of cancer care [29][40] - Plans are in place to reduce overall projected spending while prioritizing investments in high-value new product development [10][11] - The management team is committed to simplifying the business narrative and focusing on core growth areas [38][39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2025 and emphasized the importance of oncology in the company's future [29][39] - The company is optimistic about addressing workflow disruptions and improving test volume growth in the coming quarters [14][39] - Management expressed confidence in the potential for sustained profitable growth and market share increase [30][39] Other Important Information - The company plans to launch several new products, including a combined carrier screening and NIPS assay, and an AI-enabled test by the end of the year [11][12] - An income tax benefit of $29.3 million was recognized in Q1, expected to result in cash tax refunds [25][26] Q&A Session Summary Question: Concerns about the complexity of the company's situation - Management acknowledged the complexity and indicated that it would take several months to simplify the narrative and focus on core growth areas [36][39] Question: Update on GeneSight's revenue headwind - Management confirmed a $10 million revenue headwind in Q1 due to UnitedHealthcare's coverage change, with no expected impact from other payers [46][52] Question: Coverage updates from other payers - Management stated that there have been no indications of coverage changes from other payers and noted some recent wins in coverage [53][54] Question: Impact of UnitedHealthcare on prescription patterns - Management reported no significant changes in provider behavior regarding GeneSight prescriptions despite the coverage changes [55] Question: Details on EMR integration challenges - Management explained that EMR integration for unaffected testing requires additional features and workflows, which take time to implement [68][70] Question: Market growth expectations for Polaris - Management indicated that the market for Polaris is expected to grow at low double-digit rates, with ongoing efforts to enhance competitive positioning [78][79]

Forward-looking statements and Non-GAAP financial measures Some of the information presented here today contains projections or other forward-looking statements regarding future events or the future financial performance of the Company. FORWARD-LOOKING STATEMENTS AND DISCLAIMERS These statements are based on management's current expectations and the actual events or results may differ materially and adversely from these expectations. We refer you to the documents the Company files from time to time with the ...

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $196 million, a decline of 3% year over year, at the lower end of the target range [5][20] - Excluding certain impacts, total Q1 revenue grew 5% year over year [6][23] - Average revenue per test decreased by 4%, while test volume increased by 1% [20][21] - Gross margin improved by 50 basis points to 69% due to lab efficiencies [21][22] - The company updated its 2025 financial guidance, lowering annual revenue expectations by $35 million and operational expenses by $25 million [7][25] Business Line Data and Key Metrics Changes - Prenatal testing revenue grew by 11% year over year, while hereditary cancer revenue declined by 2% [10][21] - GeneSight revenue decreased by 20% year over year, primarily due to changes in UnitedHealthcare's coverage policy [12][17] - MiRisk test volume grew by 11% year over year, contributing positively to oncology revenue, which declined by 2% overall [12][13] - Women's health revenue reached $87 million, a 4% increase year over year, driven by strong prenatal testing performance [15][16] Market Data and Key Metrics Changes - The company faced headwinds from UnitedHealthcare's policy changes affecting GeneSight, resulting in a $10 million revenue impact in Q1 [43][44] - The overall market for unaffected hereditary cancer testing is projected to grow, but the company is currently experiencing slower ramp-up due to EMR integration challenges [11][64] - The company remains optimistic about the potential for growth in the hereditary cancer market, which is valued at approximately $4.5 billion [54] Company Strategy and Development Direction - The company is focusing on oncology as a cornerstone of its strategy, aiming to enhance its offerings across the cancer care continuum [26][36] - Plans are in place to prioritize investments in high-value new product development, including AI-enabled tests and MRD testing [8][26] - The management team is committed to simplifying the business narrative and focusing on core growth areas [35][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging first quarter but expressed optimism about addressing operational challenges and improving performance [5][26] - The company is actively working on strategies to increase test volumes for GeneSight and MiRisk, despite projecting softer volumes for these tests [7][11] - Management emphasized the importance of execution excellence and the need for a compelling strategy to drive future growth [26][36] Other Important Information - The company recognized a one-time income tax benefit of $29.3 million in Q1, expected to result in cash tax refunds [22] - The company is on track to launch several new products, including a combined carrier screening and NIPS assay and an AI-enabled test by the end of the year [8][26] Q&A Session Summary Question: Concerns about the complexity of the company's situation - Management acknowledged the complexity and indicated that it would take several months to simplify the narrative and focus on key growth metrics [33][36] Question: Update on GeneSight's revenue headwind - Management confirmed a $10 million revenue headwind in Q1 due to UnitedHealthcare's coverage changes, with no expected impact from other payers [43][44] Question: Coverage updates from other payers - Management stated that there have been no indications of coverage changes from other payers and noted recent wins in incremental coverage for GeneSight [48] Question: Changes in provider prescription patterns - Management reported no significant changes in provider behavior regarding GeneSight prescriptions, despite the coverage challenges [50] Question: Portfolio evaluation and potential divestitures - Management emphasized a thorough evaluation of the portfolio, with a focus on oncology, while remaining open to strategic adjustments [52][54] Question: EMR integration challenges - Management explained that EMR integration for unaffected testing is complex and requires time to implement effectively [64] Question: Market growth expectations for Polaris - Management indicated that the market for Polaris is expected to grow at low double-digit rates, with ongoing efforts to enhance competitive positioning [72]