Myriad Genetics FY Conference Summary Company Overview - **Company**: Myriad Genetics (NasdaqGS:MYGN) - **Date of Conference**: September 10, 2025 Key Industry Insights - **Hereditary Cancer Market**: - The affected market (diagnosed with cancer) is valued at approximately $2 billion, with over two-thirds penetration and mid-single-digit growth. [10] - The unaffected market (not diagnosed) is nearing $5 billion, with less than 50% penetration and expected growth between high single digits to low double digits. [10][11] - New guidelines from ASCO and NCCN are expected to drive growth in the affected market. [11] - **Women's Health**: - The Prequel and Foresight volume declined by 7% year-over-year due to issues with the order management system, which have since been resolved. [16][18] - Incremental positive payer coverage for expanded carrier screening has been observed ahead of ACOG guidelines. [19] Core Company Strategies - **Updated Strategy**: - Focus on leveraging strengths in science and high-quality tests, particularly in cancer care. [6][7] - Emphasis on improving user experience and expanding EMR integrations. [7][8] - **Breast Cancer Risk Assessment Program**: - Targeting OB-GYN providers to increase awareness and facilitate hereditary cancer testing. [13][14] - **Partnerships**: - Collaboration with JScreen to enhance access to genetic testing for high-risk populations. [15] Product Developments - **FirstGene**: - A combined screening product for NIPS and carrier screening, currently in early access with positive feedback. [20][21] - **Prequel NIPS**: - Launched for eight weeks of gestational age, showing strong market traction. [23] - **Precise MRD**: - Targeting a 2026 launch with early access to build real-world evidence and customer base. [24][25] - **AI-enabled Prolaris Tests**: - Expected launch by year-end, aimed at improving biopsy confidence and expanding into post-radical prostatectomy opportunities. [29][30] Financial Performance and Projections - **Gross Margins**: - Expected to be in the range of 69.5% to 70% for the year, supported by lab upgrades and operational efficiencies. [41][42] - **Long-term Revenue Growth Target**: - Updated to high single digits to low double digits, driven by growth in hereditary cancer testing, women's health, and oncology. [43][44] - **Operational Expenditure**: - Adjustments made to align with growth strategy, focusing on cancer care while maintaining growth in prenatal and mental health sectors. [46] Challenges and Resolutions - **EMR Integration Issues**: - Challenges in workflow integration for unaffected hereditary cancer testing have been identified and are being addressed through partnerships. [38][39][40] - **Order Management System Disruptions**: - Issues have been resolved, and a gradual return to previous volume levels is expected over the coming quarters. [18][19] Conclusion - Myriad Genetics is positioned in attractive markets with a strong reputation and a focus on innovative product launches. The company is optimistic about future growth driven by strategic partnerships, product development, and operational improvements. [49][50][51]

Core Insights - Myriad Genetics reported Q2 2025 earnings with revenue of $213.1 million, surpassing consensus estimates of $201.9 million, but faced a significant impairment charge of $316.7 million leading to a GAAP net loss [1][5][8] - The company experienced a modest return to revenue growth with a year-over-year increase of 1%, and adjusted EPS of $0.05 exceeded analyst expectations of $(0.01) [1][2][5] - The focus on the Cancer Care Continuum strategy emphasizes investment in oncology and next-generation diagnostic testing, with a strong emphasis on R&D and partnerships [4][3] Financial Performance - Revenue for Q2 2025 was $213.1 million, a 0.8% increase from Q2 2024's $211.5 million [2] - Adjusted operating income rose to $8.6 million, a 16.2% increase from Q2 2024 [2][5] - Gross margin improved to 71.2%, up 1.6 percentage points from 69.5% in Q2 2024 [2][5] Segment Performance - The Oncology segment generated $85.5 million in revenue, with hereditary cancer testing contributing $54.1 million, reflecting a 9% year-over-year volume increase [6] - Women's Health reported $89.8 million in revenue, with prenatal testing revenue rising 7% year-over-year to $47.6 million, despite an 8% decline in prenatal test volume due to workflow issues [7] - The Pharmacogenomics segment, including the GeneSight test, posted $37.8 million in revenue, a 12% decrease attributed to the loss of coverage from UnitedHealthcare [8][12] Operational Highlights - Total test volume was 384,000, showing a slight decline from the previous year, with increases in some areas offset by declines in tumor profiling and prenatal tests [9] - The company reported negative adjusted free cash flow of $(17.1) million, compared to a positive figure last year, and cash and equivalents at period end were $74.4 million [10][15] Strategic Focus - Myriad Genetics is prioritizing technological innovation, securing insurance reimbursement, and expanding market presence, particularly in oncology and women's health [4][3] - The company plans to launch new products, including MRD and AI-enabled prostate cancer tests, in 2026 [12] Outlook - Management raised full-year FY2025 revenue guidance to $818 million to $828 million, with gross margin expectations also increased [16] - Adjusted EPS guidance remains between $(0.02) and $0.02 for FY2025, reflecting the second quarter results and current business outlook [16]