Core Viewpoint - Myriad Genetics faces a significant challenge as UnitedHealthcare will cease coverage for its GeneSight pharmacogenetic testing, impacting future revenue streams starting in the first half of 2025 [1][3]. Financial Performance - In 2024, Myriad Genetics generated approximately $45 million from GeneSight testing through UnitedHealthcare, with $40 million from commercial plans and $5 million from managed Medicaid plans [2]. - The company reported fourth-quarter adjusted EPS of 3 cents, down from 4 cents year-over-year, aligning with consensus expectations [6]. - Fourth-quarter sales reached $210.6 million, reflecting a 7% year-over-year increase but falling short of the consensus estimate of $211.62 million [6]. Guidance and Expectations - Myriad Genetics reaffirmed its adjusted EPS guidance for 2025 at 7-11 cents, compared to a consensus of 6 cents [3]. - The company anticipates sales between $840 million and $860 million, slightly below the consensus of $866.2 million [4]. Leadership Changes - Myriad Genetics appointed Sam Raha as the new President and CEO, effective April 30, replacing Paul J. Diaz, who is transitioning to a private equity firm [4]. Market Reaction - Following the news, Myriad Genetics' stock declined by 14.2%, trading at $11.83 [6]. - Analysts have mixed reactions, with JPMorgan maintaining an Underweight rating due to uncertainties in long-term growth strategy, while UBS holds a Neutral rating and lowers the price target from $18 to $16 [7]. Business Segment Performance - The Oncology business generated revenue of $82.8 million in the fourth quarter, with hereditary cancer testing revenue growing by 8% year-over-year [6]. - The Women's Health segment reported revenue of $87.2 million, with prenatal testing revenue increasing by 12% year-over-year [6].

Core Insights - Myriad Genetics, Inc. reported fourth-quarter 2024 adjusted earnings of 3 cents per share, matching the Zacks Consensus Estimate, while the GAAP loss was 47 cents compared to a loss of 36 cents in the prior-year quarter [1][2] Financial Performance - Total revenues increased by 7.1% year over year to $210.6 million, slightly exceeding the Zacks Consensus Estimate by 0.2% [3] - For the full year 2024, revenues reached $837.6 million, reflecting an 11% rise from the previous year, also surpassing the Zacks Consensus Estimate by 0.1% [3] Revenue Breakdown by Segments - Hereditary Cancer testing revenues rose 6% year over year to $94.3 million [4] - Pharmacogenomics testing revenues increased by 14% year over year to $40.6 million [4] - Tumor Profiling testing revenues decreased by 4% year over year to $30.8 million [4] - Prenatal testing revenues grew by 12% year over year to $44.9 million [4] Margin and Expense Analysis - Gross margin expanded by 299 basis points to 71.7% [5] - Research and development expenses rose by 41.4% year over year to $29.7 million [5] - Selling, general and administrative (SG&A) expenses increased by 7.3% to $72 million in the reported quarter [5] - The adjusted operating loss was $17.3 million, an improvement from a loss of $31.4 million in the year-ago quarter [5] Financial Position - Myriad Genetics ended the fourth quarter of 2024 with cash and cash equivalents of $102.4 million, down from $132.1 million at the end of 2023 [6] - Long-term debt increased to $39.6 million from $38.5 million at the end of 2023 [6] - Cumulative net cash inflow from operating activities was $6.6 million, a significant improvement from an outflow of $54.7 million in the year-ago period [6] Future Guidance - For 2025, Myriad Genetics forecasts revenues between $840 million and $860 million, indicating a growth of 9%-11% over the prior year [7] - Adjusted earnings per share (EPS) are expected to be in the range of 7-11 cents, with the Zacks Consensus Estimate at 9 cents [8] - For the first quarter, revenues are anticipated to be between $196 million and $204 million, compared to the Zacks Consensus Estimate of $212.7 million [8] Strategic Developments - The company announced a strategic partnership with jscreen to enhance its hereditary cancer and reproductive genetics products [10] - A collaboration with PATHOMIQ was established to integrate AI technology into its Oncology portfolio, including an exclusive license for prostate cancer [11] Overall Assessment - Myriad Genetics demonstrated stable earnings and revenue growth, driven by demand for Pharmacogenomics and Prenatal testing, marking its second consecutive year of double-digit expansion [9]

Myriad Genetics, Inc. (NASDAQ:MYGN) Q4 2024 Results Conference Call February 24, 2025 4:30 PM ET Company Participants Matt Scalo - Senior Vice President of Investor Relations Paul Diaz - President and Chief Executive Officer Sam Raha - Chief Operating Officer Mark Verratti - Chief Commercial Officer Scott Leffler - Chief Financial Officer Conference Call Participants Madeline Mollman - Wolfe Research Will Ortmayer - Goldman Sachs Madison Pasterchick - Morgan Stanley Tycho Peterson - Jefferies Sung Ji Nam - ...

Group 1 - Myriad Genetics reported quarterly earnings of $0.03 per share, matching the Zacks Consensus Estimate, compared to $0.04 per share a year ago [1] - The company posted revenues of $210.6 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 0.22%, and up from $196.6 million year-over-year [2] - Myriad has surpassed consensus revenue estimates four times over the last four quarters [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call [3] - Myriad shares have increased approximately 3.4% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [3] Group 3 - The earnings outlook for Myriad is uncertain, with current consensus EPS estimates at breakeven on $212.75 million in revenues for the coming quarter and $0.09 on $859.09 million in revenues for the current fiscal year [7] - The estimate revisions trend for Myriad is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 4 - The Medical - Biomedical and Genetics industry is currently in the top 26% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions [5]

Revenue Projections - Fourth quarter 2024 total revenues are expected to be between $209 million and $211 million, representing an increase of approximately 6% to 7% compared to Q4 2023[4]. - Full year 2024 total revenues are projected to be between $836 million and $838 million, reflecting an increase of approximately 11% compared to full year 2023[4]. - For full year 2025, revenue guidance is set at $840 million to $860 million, indicating an increase of approximately 0% to 3% compared to preliminary 2024 revenue[9]. Earnings Per Share - Fourth quarter 2024 GAAP diluted loss per share is expected to be between $(0.72) and $(0.62), while adjusted diluted EPS is projected to be between $0.03 and $0.04[4]. - Full year 2024 GAAP loss per share is anticipated to be between $(1.66) and $(1.56), with adjusted EPS expected to be between $0.14 and $0.15[4]. - Full year 2025 adjusted EPS is anticipated to be between $0.07 and $0.11, based on a share count of 94 million[10]. Cash and Assets - As of December 31, 2024, cash and cash equivalents were approximately $102 million, an increase of $2 million from the end of Q3 2024[4]. Adjusted EBITDA and Net Loss - Adjusted EBITDA for the three months ended December 31, 2024, is projected to be between $10.0 million and $10.9 million, while for the twelve months, it is expected to be between $39.9 million and $40.8 million[23]. - The net loss for the three months ended December 31, 2024, is estimated to be between $65.7 million and $56.8 million, and for the twelve months, it is projected to be between $150.5 million and $141.6 million[23]. Impairment and Expenses - Goodwill and long-lived asset impairment charges for the three months ended December 31, 2024, are expected to be between $45.0 million and $41.0 million, and for the twelve months, between $58.8 million and $54.8 million[23]. - Equity compensation expenses for the twelve months ended December 31, 2024, are projected to be $49.8 million[23]. - Real estate optimization costs for the three months ended December 31, 2024, are estimated at $1.7 million, and for the twelve months, at $7.2 million[23]. - Transformation initiatives costs for the twelve months ended December 31, 2024, are expected to be $6.6 million[23]. Tax Adjustments - Tax adjustments include a tax expense (benefit) due to non-GAAP adjustments and differences in stock compensation deductions[26]. Future Financial Reporting - The company plans to release actual financial results for Q4 and full year 2024 during its earnings call in February 2025[5]. Significant Financial Factors - The impairment of acquired technology intangible assets related to the GeneSight Test is a significant factor in the financial adjustments for the year[25]. - The company is undergoing real estate initiatives, including the build-out of new laboratories in Salt Lake City and South Francisco[25].

Core Insights - Myriad Genetics reported a revenue growth of 11% in 2024 compared to 2023, marking the second consecutive year of double-digit growth, with an adjusted EBITDA of $40 million [3][7] - The company reaffirmed its financial guidance for 2025, projecting revenue between $840 million and $860 million, which reflects a growth of 9% to 11% over 2024 [7][18] Financial and Operational Highlights - In Q4 2024, Myriad Genetics generated revenue of $211 million, a 7% increase year-over-year, driven by strong demand in Pharmacogenomics (14% growth) and Prenatal testing (12% growth) [7][12] - Test volumes reached 374,000 in Q4 2024, representing a 4% increase year-over-year [6] - The GAAP gross margin for Q4 2024 was 71.7%, up 300 basis points from the previous year, attributed to improved revenue per test and greater laboratory efficiencies [7] Business Performance by Segment - The Oncology segment generated $82.8 million in revenue during Q4 2024, with hereditary cancer testing revenue growing by 8% year-over-year [9][10] - The Women's Health segment reported revenue of $87.2 million in Q4 2024 [12] - In Pharmacogenomics, GeneSight test revenue was $40.6 million in Q4 2024 [13] Strategic Initiatives - Myriad Genetics entered a strategic collaboration with PATHOMIQ to integrate AI technology into its Oncology portfolio, enhancing its prostate cancer offerings [7][10] - The company announced a five-year strategic alliance with The University of Texas MD Anderson Cancer Center to accelerate the clinical evaluation of its molecular residual disease (MRD) assay [16] Cash Flow and Liquidity - As of December 31, 2024, Myriad had cash and cash equivalents of $102 million, with total liquidity of approximately $158 million [14][14] Future Outlook - The company is optimistic about 2025, anticipating contributions from recent product launches, including Prequel with 8-week Gestational Age and Precise Tumor [4][18] - Myriad plans to commercially launch its first AI-driven prostate cancer test later in 2025, which will complement its existing offerings [10][11]

Core Viewpoint - Myriad Genetics, Inc. has appointed Sam Raha as the new CEO effective April 30, 2025, succeeding Paul J. Diaz, who will transition to a consulting role for one year [1][2]. Leadership Transition - Sam Raha, currently the COO, has been recognized for his role in shaping the company's long-term growth strategy since joining in December 2023 [2]. - The Board of Directors expressed confidence in Raha's leadership, emphasizing his extensive background in the diagnostics industry [2]. - Paul J. Diaz has been credited with transforming Myriad over the past four-and-a-half years, enhancing its brand and operational capacity [2][3]. Future Strategy - Raha aims to accelerate the company's growth and profitability through innovation and a comprehensive portfolio, while focusing on patient needs and healthcare providers [2]. - The company is also in the process of searching for a new Chief Commercial Officer (CCO) following the promotion of Mark S. Verratti to COO [1][2]. Company Background - Myriad Genetics specializes in molecular diagnostics testing and precision medicine, aiming to improve patient care and reduce healthcare costs through its molecular tests [4].

Core Viewpoint - Myriad Genetics and PATHOMIQ have entered a strategic collaboration for Myriad to exclusively license PATHOMIQ_PRAD, an AI technology platform for prostate cancer, in the United States [1][5]. Group 1: Collaboration Details - The partnership aims to enhance Myriad's Oncology Solutions by integrating PATHOMIQ_PRAD, providing urologists and radiation oncologists with advanced molecular and AI-powered testing solutions [2][3]. - Myriad's existing offerings will be complemented by this collaboration, which aligns with NCCN guidelines for prostate cancer care [2]. Group 2: Technology and Innovation - PATHOMIQ's AI platform decodes complex morphological structures in cancer pathology, enabling rapid deployment of new use cases to predict patient outcomes and treatment responses [3][4]. - The AI model has demonstrated high prediction accuracy, outperforming existing markers in both Caucasian and African American patient cohorts [4]. Group 3: Market Impact and Future Plans - Myriad plans to commercially launch its first AI-driven prostate cancer clinical test later in 2025, aiming to provide personalized treatment options [5][10]. - The collaboration is expected to accelerate the development timelines for clinical validation of both Prolaris and PATHOMIQ_PRAD tests [4].

Core Points - Myriad Genetics, Inc. has been recognized on Forbes' list of America's Best Employers 2025, highlighting its status as a leader in genetic and genomic tumor testing and precision medicine [1][2] - The company received positive feedback from its employees, with 84% stating it is a Great Place To Work, which is 27 percentage points higher than the average U.S. company [2] - The selection process for the Forbes list involved an independent survey of over 217,000 U.S. employees from companies with at least 1,000 employees, considering more than 6.5 million employer evaluations [3] Company Overview - Myriad Genetics specializes in genetic tests that assess disease risk and guide treatment decisions, aiming to improve patient care and reduce healthcare costs [6] - The company is dedicated to advancing health and well-being for all through innovative solutions [2][6]

Core Points - Myriad Genetics, Inc. has been recognized on Forbes' list of America's Best Employers 2025, highlighting its status as a leader in genetic and genomic tumor testing and precision medicine [1][2] - The company received positive feedback from its employees, with 84% stating it is a Great Place To Work, which is 27 percentage points higher than the average U.S. company [2] Summary by Sections Company Recognition - Myriad Genetics has been included in the prestigious Forbes list, which is a significant accolade for the company [1] - The recognition is based on an independent survey conducted by Forbes and Statista, involving over 217,000 U.S. employees from companies with at least 1,000 employees [3] Employee Satisfaction - The chief people officer of Myriad Genetics emphasized the company's commitment to innovation and employee empowerment [2] - The high percentage of employees who view the company positively indicates a strong workplace culture [2] Survey Methodology - The selection process for America's Best Employers involved more than 6.5 million employer evaluations, focusing on personal evaluations from employees and public evaluations from friends and family [3] Company Overview - Myriad Genetics specializes in genetic tests that assess disease risk and guide treatment decisions, aiming to improve patient care and reduce healthcare costs [6]