Myriad Genetics Faces Cost Restructuring As UnitedHealthcare Ends GeneSight Coverage, Appoints New CEO

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].