MYRIAD GENETICS INC Q4 FY2024 earnings call

Key Points

• Paul Diaz thanked teammates and provider partners, highlighted 11% revenue growth in 2024, and announced partnership with PATHOMIQ to apply AI technology to oncology products.
• Sam Raha discussed strategic elements, including divesting non-strategic assets, restructuring, and focus on innovation and execution excellence.
• Mark Verratti talked about commercial performance, EMR integrations, growth in women's health, strong GeneSight demand, prostate cancer testing dynamics, and partnerships.
• Scott Leffler discussed financial results, 11% total revenue growth, Q4 results, gross margin improvement, and reaffirmed 2025 guidance.

In 2024, Myriad Genetics saw 11% revenue growth. Hereditary cancer testing revenues grew 11%, with MyRisk remaining the gold standard. Prenatal revenue grew 17%, driven by the launch of Prequel at 8 weeks gestational age. Pharmacogenomics, specifically GeneSight, saw 23% revenue growth. Oncology had 24% MyRisk effective revenue growth, and the partnership with PATHOMIQ was announced to apply AI technology to oncology products. Women's health achieved 14% revenue growth in 2024, with launches like Foresight Universal Plus and Prequel.

2025 Guidance

• Reaffirmed revenue range of $840 million to $860 million, gross margin range of 69.5% to 70.5%, and adjusted OpEx between $575 million and $595 million.
• Anticipated adjusted EPS between $0.07 and $0.11 for the full year 2025, and adjusted operating cash flow between $20 million and $30 million.
• Anticipated Q1 2025 revenue between $196 million and $204 million, with an adjusted EPS loss between $0.04 and $0.08.

Risks

• Potential impact of UnitedHealthcare policy changes on GeneSight revenue and volume.
• Uncertainty around Medicaid spending cuts and their effect on prenatal revenue.
• Market confusion regarding NCCN guidelines affecting Prolaris volume and adoption.

Q: Touch on operating expense, R&D spend, SG&A guidance A: Paul Diaz discussed R&D investment for future growth, noting a 25% increase in R&D to support future products like FirstGene and Precise MRD, and mentioned SG&A adjustments due to pragmatic handling of UnitedHealthcare changes but reallocating investment for growth Q: Hereditary cancer affected market progress A: Mark Verratti talked about the breast cancer risk assessment program and EMR integration, highlighting traction and future growth potential in the unaffected market with 10% penetration Q: Revenue phasing and seasonality A: Mark Verratti mentioned expecting acceleration in volume growth in the second half of 2025, with Q2 and Q4 typically stronger quarters Q: Prolaris and NCCN guideline confusion A: Mark Verratti discussed working with KOLs and increasing investments in marketing, medical affairs, and KOL engagement to address confusion and drive Prolaris growth Q: GeneSight sales force focus and efforts A: Mark Verratti clarified sales force remains focused on treating mental health patients, with internal teams working on data evidence generation, government affairs, and advocacy efforts regarding UnitedHealthcare policies