Myriad Genetics, Inc. · NASDAQ:MYGN
Myriad Genetics — Q4 2017 Earnings Presentation
19 slides from Myriad Genetics's earnings presentation, Aug 8, 2017
Slide 1: Myriad Genetics Fiscal Fourth-Quarter 2017 Earnings Call
Myriad Genetics Fiscal Fourth-Quarter 2017 Earnings Call 08/08/2017 Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements Some of the information presented here today may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. These statements are based on management’s current expectations and the actual events or res
Slide 3: FY2017 Fourth-Quarter Financial Results Significantly Exceeded Expectations
FY2017 Fourth-Quarter Financial Results Significantly Exceeded Expectations 4Q17 Actual Results 4Q16 Actual Results YoY Change Guidance Revenue $200.5 $186.5 8% $192 - $194 million GAAP EPS $0.19 $0.32 (41%) $0.11 - $0.13 Adjusted EPS $0.30 $0.36 (17%) $0.26 - $0.28
Slide 4: Critical Success Factors to Achieving Strategic Goals
Critical Success Factors to Achieving Strategic Goals Stabilize hereditary cancer revenue Grow new product volume STRATEGIC GOALS CRITICAL SUCCESS FACTORS >10% Revenue Growth >30% Operating Margin 7 Products >$50M >10% International Revenue Expand reimbursement coverage for new products Increase RNA
Slide 5: Stabilize Hereditary Cancer Revenue
Stabilize Hereditary Cancer Revenue Significant Progress Made in Fiscal Year 2017 VOLUME Up 15% with flat revenue after 4 years of competition 6% year-over-year volume growth in 4Q17 PRICING 86% under long-term, fixed- price contracts Predictable pricing in fiscal year 2019 and 2020
Slide 6: Grow New Product Volume
Grow New Product Volume 20% New Product Volume Growth in Fiscal Year 2017 20% Growth Two-thirds of test volume Acquired Assurex and achieved profitability in 9 months Acquired Sividon GeneSight volume +45% EndoPredict volume +67% and launched in the U.S. Prolaris volume +26% * normalized for a full
Slide 7: Expand Reimbursement Coverage for New Products
Expand Reimbursement Coverage for New Products Significant Progress with EndoPredict and Prolaris Prolaris received LCD for favorable intermediate patients EndoPredict covered for 120M commercial lives and received draft LCD from Medicare myPath Melanoma dossier submitted to Medicare/private payers
Slide 8: Fiscal Fourth-Quarter 2017 Revenue By Product Increased Eight Percent
Fiscal Fourth-Quarter 2017 Revenue By Product Increased Eight Percent Over Q4 Fiscal Year 2016 Product 4Q17 4Q16 YoY Growth Hereditary Cancer $144.6 $152.8 (5%) GeneSight $25.5 NA* NM Vectra DA $10.3** $12.7 (19%) Prolaris $2.9 $3.5 (17%) EndoPredict $2.0 $1.7 18% Other $2.6 $3.0 (13%) Total Molecul
Slide 9: Fiscal Fourth-Quarter Financial Results
Fiscal Fourth-Quarter Financial Results 4Q17 4Q16 YoY Growth Total Revenue $200.5 $186.5 8% Gross Profit $158.0 $146.5 8% Gross Margin 78.8% 78.6% Operating Income $17.1 $35.7 (52%) Adjusted Operating Income $28.0 $39.0 (28%) Adjusted Operating Margin 14.0% 20.9% Net Income $12.9 $23.4 (45%) Diluted
Slide 10: FY18 and 1Q18 Financial Guidance
FY18 and 1Q18 Financial Guidance Metric Fiscal Year 2018 Fiscal First-Quarter 2018 Revenue $750 to $770 million $181 to $183 million GAAP Diluted EPS $0.37 to $0.42 $0.05 to $0.07 Adjusted EPS $1.00 to $1.05 $0.19 to $0.21 For additional information on GAAP to non-GAAP reconciliation see: https://ww
Slide 11: Launching Elevate 2020
Launching Elevate 2020 Goal of Achieving $50M in Incremental Operating Profit by FY20 FY18: 16 projects identified $17M in cost savings FY19: 15 projects identified $24M in cost savings FY20 and beyond: Additional project evaluations Additional cost savings Goal: $50M in incremental operating profit
Slide 12: Potential Catalysts in Fiscal Year 2018
Potential Catalysts in Fiscal Year 2018 Multiple Possibilities for Material Upsides Potential Catalyst Potential Timing Opportunity Annualized Revenue Impact Annualized EPS Impact Hereditary Cancer Better Volume Growth FY18 6% Growth 9% Growth $15M $30M $0.12 $0.24 BRACAnalysis CDx Metastatic Breast
Slide 13: ASCO Study Supports Expanded Testing Criteria
ASCO Study Supports Expanded Testing Criteria 50% of Mutations Were in Patients that Did Not Meet Criteria 2,000 Patients 242 Mutations 50% of variants in patients who do not meet NCCN criteria 34% of variants in genes not indicated by family history *ASCO Presentation: Expanded Yield of Multiplex P
Slide 14: GeneSight Growth Fundamentals Are Strong
GeneSight Growth Fundamentals Are Strong Ordering Physician Growth Up 55%; GeneSight Volume Up 45% +55% +45% 11,000 +6,000 +71,000 159,000
Slide 15: Six Studies Show Vectra DA Predicts Radiographic Progression
Six Studies Show Vectra DA Predicts Radiographic Progression (RP) Greater Than 3x the Predictive Power of Standard Measures Study N Overall RP (%) Relative Risk P-Value Leiden 163 17% 4.3 <0.0001 OPERA Year 1 164 26% 9.5 0.0009 SWEFOT Year 1 235 18% 7.1 0.008 Meta-Analysis (Leiden + OPERA + SWEFOT Y
Slide 16: Vectra DA Can Predict Patients Who Can Safely Undergo Tapering
Vectra DA Can Predict Patients Who Can Safely Undergo Tapering Average Reduction in Biologic Spend = 20% Average Reduction in Biologic Spend = 20% *Multi-Biomarker Disease Activity and Autoantibody Status Lead To Cost Effective Tapering Algorithms in Rheumatoid Arthritis Patients in Sustained Remiss
Slide 17: Prolaris Can Predict Risk of 10-Year Metastases
Prolaris Can Predict Risk of 10-Year Metastases Rate of Metastases >25x Higher In Patients With High Prolaris Score <1% 25% 10-Year Rate of Metastases * AUA Presentation: Comparing the Prognostic Utility of the CCP Score for Predicting Metastatic Disease in African American and Non-African American
Slide 18: New Indication Would Represent 60,000 Patients/Yr
New Indication Would Represent 60,000 Patients/Yr 3x the Size of Ovarian Cancer Market Diagnosed with or progress to metastatic disease HER2+ 40,000 HER2- 60,000 155,000 Two-thirds not currently eligible for hereditary cancer testing Don’t progress to metastatic disease 255,000 cases of invasive bre
Slide 19: Critical Success Factors to Achieving Strategic Goals
Critical Success Factors to Achieving Strategic Goals Stabilize hereditary cancer revenue Grow new product volume STRATEGIC GOALS CRITICAL SUCCESS FACTORS >10% Revenue Growth >30% Operating Margin 7 Products >$50M >10% International Revenue Expand reimbursement coverage for new products Increase RNA