Myriad(US:MYGN)2024-11-08 13:18Financial 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].