Myriad Genetics, Inc. (MYGN) recently made SneakPeek available over the counter in more than 8,800 retail locations nationwide. SneakPeek is the first at-home early fetal sex test for use at six weeks, now available on shelves in Walmart, Walgreens and CVS stores. Through the SneakPeek test, Myriad Genetics is on a mission to make DNA-based prenatal information affordable and accessible for all families.MYGN Stock Movement Following the NewsFollowing the news, shares of MYGN fell 2.4% to $15.78 at yesterday ...

Myriad Genetics, Inc. (NASDAQ:MYGN) Q3 2024 Earnings Conference Call November 7, 2024 4:30 PM ET Company Participants Matt Scalo - Senior Vice President of Investor Relations Paul Diaz - President and Chief Executive Officer Scott Leffler - Chief Financial Officer Sam Raha - Chief Operating Officer Mark Verratti - Chief Commercial Officer Conference Call Participants Douglas Schenkel - Wolfe Research Puneet Souda - Leerink Partners Prashant Kota - Goldman Sachs Subu Nambi - Guggenheim Partners Sung Ji Nam - ...

Core Viewpoint - Myriad Genetics, Inc. reported better-than-expected earnings and revenues for Q3 2024, driven by strong growth across its product portfolios, although the company still faced an operating loss during the quarter [8][10]. Financial Performance - Adjusted earnings for Q3 2024 were 6 cents per share, surpassing the Zacks Consensus Estimate of 2 cents, compared to a loss of 3 cents per share in the same quarter last year [1]. - Total revenues increased by 11% year over year to $213.3 million, exceeding the Zacks Consensus Estimate by 1.7% [3]. - Testing volumes rose by 6% year over year [3]. Revenue Breakdown - Hereditary Cancer testing revenues grew by 5% year over year to $90.5 million [4]. - Pharmacogenomics testing revenues reached $47.7 million, marking a 34% increase year over year [4]. - Tumor Profiling testing revenues increased by 5% year over year to $31.6 million [4]. - Prenatal testing revenues amounted to $43.5 million, up 10% year over year [4]. Margin and Expenses - Gross margin expanded by 24 basis points to 70.2% [5]. - Research and development expenses rose by 18.8% year over year to $28.5 million [5]. - Selling, general and administrative (SG&A) expenses increased by 2.2% to $139.1 million [5]. - The adjusted operating loss was $17.8 million, an improvement from a loss of $25.8 million in the previous year [5]. Financial Position - Cash and cash equivalents at the end of Q3 2024 were $99.9 million, up from $92.4 million at the end of Q2 2024 [6]. - Long-term debt was $39 million, slightly up from $38.8 million at the end of Q2 2024 [6]. - Cumulative net cash used in operating activities was $15.3 million, significantly reduced from $56.2 million in the year-ago period [6]. Guidance - The company updated its 2024 revenue guidance to a range of $837-$843 million, indicating 11-12% growth year over year, while the previous guidance was $835-$845 million [7]. - Adjusted EPS guidance was raised to a range of 12-14 cents, up from the earlier projection of 8-12 cents [7]. Strategic Developments - Myriad Genetics established additional research collaborations with leading cancer research institutions, enhancing its research capabilities [9]. - The company expanded payor coverage for several products, including GeneSight, which may improve market access and revenue potential [9].

Financial Performance - Testing revenue for the three months ended September 30, 2024, was $213.3 million, an increase of 11.8% compared to $191.9 million for the same period in 2023[9]. - Total revenue for the three months ended September 30, 2024, was $213.3 million, a 23.5% increase compared to $172.2 million in the same period of 2023[24]. - The net loss for the three months ended September 30, 2024, was $22.1 million, compared to a net loss of $61.3 million for the same period in 2023, representing a significant improvement[9]. - For the nine months ended September 30, 2024, Myriad Genetics reported a net loss of $84.8 million, an improvement from a net loss of $232.1 million in the same period of 2023[17]. - Total revenue for the nine months ended September 30, 2024, was $627.0 million, an increase of $70.4 million or 12.6% compared to $556.6 million in the same period of 2023[115]. - The company reported an operating loss of $20.0 million for the three months ended September 30, 2024, a notable improvement from an operating loss of $60.1 million in the prior year[9]. - The company experienced a net cash used in operating activities of $15.3 million for the nine months ended September 30, 2024, significantly improved from $56.2 million in the same period of 2023[17]. - The net loss for the nine months ended September 30, 2024, was $(84.8) million, compared to $(232.1) million in the same period of the prior year[12]. Revenue Breakdown - Hereditary Cancer testing revenue for the three months ended September 30, 2024, was $90.5 million, up from $86.5 million in the same period of 2023, representing a 4.6% increase[24]. - Pharmacogenomics revenue increased by $12.0 million to $47.7 million, reflecting a 22% increase in average revenue per test and a 10% increase in testing volume[106]. - Prenatal testing revenue grew to $43.5 million, up from $39.5 million, marking a 10.1% increase[24]. - Total testing volumes increased by 6% to 376, with notable increases in Pharmacogenomics (10%) and Hereditary Cancer (5%)[105]. - Hereditary Cancer revenues rose by $31.2 million, reflecting an 8% increase in average revenue per test and a 5% increase in testing volume[117]. - Pharmacogenomics revenues increased by $26.7 million, primarily due to a 13% rise in average revenue per test and an 11% increase in testing volume[117]. - Prenatal revenues grew by $20.9 million, attributed to a 10% increase in average revenue per test and an 8% increase in testing volume[117]. Expenses and Costs - Total costs and expenses for the three months ended September 30, 2024, were $233.3 million, a decrease of 7.1% from $252.0 million in the prior year[9]. - Selling, general, and administrative expenses were $139.1 million, a slight increase of $3.0 million from $136.1 million, but as a percentage of total revenue, it decreased from 70.9% to 65.2%[109]. - Research and development expenses increased to $28.5 million for the three months ended September 30, 2024, up from $24.0 million in the same period last year, reflecting ongoing investment in new technologies[9]. - The company’s capital expenditures for the nine months ended September 30, 2024, were $15.4 million, down from $53.2 million in the same period of 2023[17]. - Stock-based compensation expense increased to $38.9 million for the nine months ended September 30, 2024, compared to $30.3 million in the same period of 2023[17]. Cash and Liquidity - Cash, cash equivalents, and restricted cash at the end of the period were $109.8 million, compared to $85.0 million at the end of the same period in 2023[17]. - Cash and cash equivalents increased to $99.9 million as of September 30, 2024, compared to $76.0 million in 2023[80]. - The company recognized a net gain of $1.2 million from the termination of a lease in Salt Lake City, included in selling, general, and administrative expenses[83]. - Cash flows used in operating activities for the nine months ended September 30, 2024, improved to $(15.3) million from $(56.2) million in the prior year, reflecting a change of $40.9 million[133]. - Cash flows used in investing activities decreased by $49.9 million, primarily due to a $94.7 million decrease in cash flows from maturities and sales of marketable investment securities[135]. Debt and Liabilities - The company’s accumulated deficit as of September 30, 2024, was $714.3 million, reflecting ongoing challenges in achieving profitability[15]. - As of September 30, 2024, the company's long-term debt fair value is estimated at $39.7 million[30]. - The Company has long-term debt of $40.0 million under the ABL Facility as of September 30, 2024, with a weighted average interest rate of 8.4%[44][46]. - Total accrued liabilities decreased from $113.9 million as of December 31, 2023, to $111.2 million as of September 30, 2024[43]. - Other long-term liabilities decreased to $34.3 million as of September 30, 2024, from $41.3 million as of December 31, 2023[50]. Future Outlook and Strategy - The company plans to continue expanding its market presence and investing in research and development to drive future growth[9]. - The company anticipates continued focus on genetic testing and precision medicine to drive future growth and improve patient care[19]. - The company plans to launch new products, including FirstGene and Precise Liquid, to accelerate growth[97]. - UnitedHealthcare's updated policy will negatively impact GeneSight revenue, which generated approximately $40.0 million in the last twelve months, starting January 1, 2025[102]. - The company is currently evaluating the impact of new accounting standards on its segment disclosures and income tax disclosures, effective for future reporting periods[20]. Legal and Compliance - The Company intends to defend its current litigation matters but cannot assure that an adverse resolution would not materially affect its financial condition[70]. - The Company has not recorded any material accrual for loss contingencies related to legal proceedings as of September 30, 2024[72]. - The ultimate resolution of legal proceedings could materially impact the Company's results of operations, financial condition, or cash flows[72].

Core Insights - Myriad Genetics reported $213.3 million in revenue for the quarter ended September 2024, marking an 11.2% year-over-year increase and exceeding the Zacks Consensus Estimate of $209.82 million by 1.66% [1] - The company achieved an EPS of $0.06, a significant improvement from -$0.03 a year ago, resulting in a 200.00% EPS surprise compared to the consensus estimate of $0.02 [1] Revenue Breakdown by Product - Prenatal revenue reached $43.50 million, surpassing the average estimate of $42.99 million, with a year-over-year increase of 10.1% [3] - Hereditary Cancer revenue was $90.50 million, slightly above the $89.63 million average estimate, reflecting a 4.6% year-over-year change [3] - Pharmacogenomics revenue totaled $47.70 million, exceeding the estimated $40.60 million, showing a substantial year-over-year increase of 33.6% [3] - Tumor Profiling revenue was reported at $31.60 million, below the average estimate of $36.08 million, with a year-over-year increase of 4.6% [3] Stock Performance - Myriad's shares have declined by 27.9% over the past month, contrasting with the Zacks S&P 500 composite's increase of 3.2% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]

Core Viewpoint - Myriad Genetics reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, and showing a significant improvement from a loss of $0.03 per share a year ago, indicating strong performance in the molecular diagnostics sector [1][2]. Financial Performance - The company achieved revenues of $213.3 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.66% and reflecting a year-over-year increase from $191.9 million [2]. - Over the last four quarters, Myriad has consistently exceeded consensus EPS estimates, achieving earnings surprises of 200% and 600% in the most recent quarters [1][2]. Stock Performance and Outlook - Myriad shares have declined approximately 8.2% since the beginning of the year, contrasting with the S&P 500's gain of 24.3%, indicating underperformance relative to the broader market [3]. - The company's current Zacks Rank is 3 (Hold), suggesting that shares are expected to perform in line with the market in the near future [6]. Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $217.47 million, and for the current fiscal year, it is $0.10 on revenues of $840.98 million [7]. - The trend of estimate revisions for Myriad is mixed, which may change following the recent earnings report [6]. Industry Context - Myriad operates within the Medical - Biomedical and Genetics industry, which is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable industry outlook [8]. - The performance of Myriad's stock may be influenced by the overall outlook for the industry, as top-ranked industries tend to outperform lower-ranked ones significantly [8].

[Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Myriad Genetics reported preliminary Q3 2024 revenue of **$210-$212 million**, reaffirming full-year guidance of **$835-$845 million** despite the EndoPredict divestiture Preliminary Q3 2024 Revenue | Metric | Value (USD) | | :--- | :--- | | **Preliminary Q3 2024 Revenue** | $210 million - $212 million | - The preliminary Q3 2024 revenue was achieved despite the divestiture of the company's EndoPredict business in Europe, which closed on August 1, 2024[2](index=2&type=chunk) Reaffirmed Full-Year 2024 Revenue Guidance | Metric | Value (USD) | | :--- | :--- | | **Reaffirmed Full-Year 2024 Revenue Guidance** | $835 million - $845 million | - The financial guidance and data are based on preliminary, unaudited internal reports and may change upon the finalization of the company's Q3 2024 financial statements[3](index=3&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section outlines risks and uncertainties that could cause actual results to differ from forward-looking statements, including preliminary financial results and full-year guidance - The report contains forward-looking statements concerning the company's full-year 2024 financial guidance, expected revenue growth, and preliminary third-quarter 2024 financial results[4](index=4&type=chunk) - The company identifies numerous risks that could impact future performance, including but not limited to: - Decline in sales and profit margins of existing tests[4](index=4&type=chunk) - Increased competition and development of new competing tests[4](index=4&type=chunk) - Changes in governmental or private insurers' coverage and reimbursement levels[4](index=4&type=chunk) - Regulatory requirements or enforcement in the U.S. and foreign countries[4](index=4&type=chunk) - Security breaches, loss of data, and other disruptions from cyberattacks[4](index=4&type=chunk) - Myriad Genetics states it is not under any obligation to update or alter any forward-looking statements, except as required by law[5](index=5&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=4&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits filed with the Form 8-K report, specifically Exhibit 104, the Cover Page Interactive Data File embedded within the Inline XBRL document - Exhibit 104, the Cover Page Interactive Data File (embedded within the Inline XBRL document), is filed with this report[6](index=6&type=chunk)

Core Insights - Myriad Genetics reported a third quarter revenue growth of 11% year-over-year, reaching $213 million, driven by strong performance in Pharmacogenomics (34%) and Prenatal (10%) testing [1][3][4] - The company improved its GAAP net loss to $22.1 million from $61.3 million in the same quarter last year, alongside an increase in adjusted EBITDA to $14.1 million from $1.4 million [1][3][4] - Updated financial guidance for 2024 indicates expected full-year revenue between $837 million and $843 million, with adjusted earnings per share projected to be between $0.12 and $0.14 [1][3][16] Financial Performance - Test volumes increased by 6% year-over-year, totaling 376,000 tests in the third quarter of 2024 [4] - Revenue breakdown for core product categories shows: - Hereditary cancer: $90.5 million (5% increase) - Tumor profiling: $31.6 million (5% increase) - Prenatal: $43.5 million (10% increase) - Pharmacogenomics: $47.7 million (34% increase) [6][8][12] - Gross margin improved to 70.2%, reflecting operational leverage and better average revenue per test [6][12] Business Developments - Myriad Genetics entered a collaboration with Flatiron Health to integrate MyRisk Hereditary Cancer Test into their EMR platform [8] - The company received a third patent for methods related to ultra-sensitive detection of tumor-specific mutations, supporting its commercialization efforts for the MRD assay [9] - A strategic partnership with jscreen aims to enhance access to genetic testing for high-risk populations [11] Challenges and Regulatory Updates - UnitedHealthcare announced it will discontinue coverage for multi-gene panel pharmacogenetic testing, including GeneSight, effective January 1, 2025, which generated approximately $10 million in revenue in the third quarter [1][13] - Myriad Genetics is actively engaging with UnitedHealthcare to provide additional clinical evidence for GeneSight and seeks to ensure continued access for patients [13][14] Cash Flow and Liquidity - The company reported an increase in cash and cash equivalents by $8.6 million, with total liquidity of $148.7 million as of the end of the third quarter [14]

Core Viewpoint - Myriad Genetics, Inc. is under investigation following the announcement that UnitedHealth Group will cease coverage of its GeneSight genetic test, leading to a significant drop in Myriad's stock price [2]. Group 1: Investigation Details - On October 31, 2024, UnitedHealth Group announced it would no longer cover GeneSight, effective January 1, 2025, citing that tests for behavioral health, including GeneSight, are "unproven" and "not medically necessary" [2]. - Following this announcement, Myriad's stock price experienced a sharp decline during intraday trading on November 1, 2024 [2]. Group 2: Legal Representation - Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Myriad securities and encourages affected investors to participate in the investigation [1][3]. - The firm operates on a contingency fee basis, meaning they will only seek reimbursement for expenses and attorneys' fees if successful in court [3]. Group 3: Firm Background - Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm specializing in securities fraud class actions and has recovered hundreds of millions of dollars for investors [4].

Core Viewpoint - Myriad Genetics expresses strong disagreement with UnitedHealthcare's updated medical policy that restricts access to its GeneSight test, citing insufficient evidence of efficacy as the rationale for the change [2][3] Company Summary - Myriad Genetics is a leader in genetic testing and precision medicine, focusing on advancing health and well-being through genetic insights [6] - The GeneSight test is a pharmacogenomic test for over 60 medications commonly prescribed for mental health conditions, with nearly 3 million tests conducted to date [3][5] - The company believes in the clinical validity and utility of GeneSight, supported by peer-reviewed research, especially in the context of the ongoing mental health crisis [3] Industry Context - The updated policy from UnitedHealthcare will take effect on January 1, 2025, impacting access to multi-gene panel pharmacogenetic tests under its commercial and individual exchange benefit plans [1] - Myriad Genetics is actively engaging with UnitedHealthcare to discuss the evidence supporting GeneSight and to ensure continued access for enrollees [2] - The company remains optimistic about favorable coverage determinations from other health plans and does not believe the updated policy will affect GeneSight coverage under Medicare Advantage and managed Medicaid plans [3]