Myriad Genetics, Inc. · NASDAQ:MYGN
Myriad Genetics — Q3 FY2017 Earnings Presentation
24 slides from Myriad Genetics's earnings presentation, May 2, 2017
Slide 1: Myriad Genetics Fiscal Third-Quarter 2017 Earnings Call
Myriad Genetics Fiscal Third-Quarter 2017 Earnings Call 05/02/2017 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: Third Quarter FY2017 Financial Results Significantly Exceeded Expectations
Third Quarter FY2017 Financial Results Significantly Exceeded Expectations 3Q17 Actual Results 3Q16 Actual Results YoY Change Guidance Revenue $196.9 $190.5 3% $188 - $190 million GAAP EPS $0.06 $0.47 (87%) $0.08 - $0.10 Adjusted EPS $0.27 $0.41 (34%) $0.23 - $0.25 * Based on higher than anticipated
Slide 4: Key Accomplishments in 3Q17
Key Accomplishments in 3Q17 Excellent Progress on Three Strategic Imperatives Strategic Imperative Accomplishment Continued Leadership in an Expanding Hereditary Cancer Market Grew hereditary cancer volume in seasonally challenging 3Q for first time in five years Oncology volume up sequentially for
Slide 5: Fiscal Third-Quarter 2017 Revenue By Product
Fiscal Third-Quarter 2017 Revenue By Product Achieved Highest Revenue in Last Three Years Product 3Q17 3Q16 YoY Growth Hereditary Cancer $140.8 $156.3 (10%) GeneSight $23.9 NA* NM Vectra DA $11.2 $12.3 (9%) Prolaris $3.4 $5.2** (35%) EndoPredict $2.3 $1.1 109% Other $3.6 $2.5 44% Total Molecular Dia
Slide 6: Fiscal Third-Quarter Financial Results
Fiscal Third-Quarter Financial Results 3Q17 3Q16 YoY Growth Total Revenue $196.9 $190.5 3% Gross Profit $152.6 $150.3 2% Gross Margin 77.5% 78.9% NM Operating Income $12.9 $42.6 (70%) Adjusted Operating Income $24.0 $45.8 (48%) Adjusted Operating Margin 12.2% 24.0% NM Net Income $4.2 $34.5 (88%) Dil
Slide 7: 4Q17 and FY17 Financial Guidance
4Q17 and FY17 Financial Guidance Raising Revenue Guidance; Narrowing EPS Outlook Metric Fiscal Fourth-Quarter 2017 Fiscal Year 2017 Revenue $192 to $194 million $763 to $765 million GAAP Diluted EPS $0.11 to $0.13 $0.23 to $0.25 Adjusted EPS $0.26 to $0.28 $1.01 to $1.03 For additional information o
Slide 8: Strongest 3Q Sequential Growth in Five Years
Strongest 3Q Sequential Growth in Five Years Sales Force Productivity and New Strategies Leading to Strong Momentum Sequential Growth in Hereditary Cancer Quarterly Volumes
Slide 9: Volume With Out-of-Network Plans Grew Sequentially
Volume With Out-of-Network Plans Grew Sequentially Physicians and Patients Continue To Demand Myriad’s Superior Quality As out-of-network provider: Physicians continue to demand highest quality test Out-of-network volume grew sequentially in Q3 Billed at list price with no discount 95%
Slide 10: High Discordance in Public Databases
High Discordance in Public Databases Myriad’s Database Provides Highest Quality Answers n=603 n=155 26% Conflicting interpretation between laboratories Source: PROMPT Study presented at ASCO 2016 Annual Meeting PROMPT Study n=4,250 Conflicting interpretation between laboratories Source: The Oncologi
Slide 11: Substantial Diversification in Testing Volumes
Substantial Diversification in Testing Volumes > Two Thirds of Volume Attributed to Non-Hereditary Cancer Tests 35% CAGR ≈180,000 tests 99% Hereditary Cancer >600,000 tests ≈ 33% Hereditary Cancer
Slide 12: Reimbursement Will Drive Significant Growth
Reimbursement Will Drive Significant Growth $650M Annual New Product Revenue When Fully Reimbursed Current Revenue Run Rate at Full Reimbursement $50M $90M $490M $20M $650M Combined
Slide 13: Landmark GeneSight Study Fully Enrolled
Landmark GeneSight Study Fully Enrolled Top Line Data Expected by End of Calendar Year 2017 Mean Improvement in HAM-D17 FDA Approved Medications* Top Line Data in 2017 *Sources: FDA summary bases of approvals Hall-Flavin DK, et al. Utility of integrated pharmacogenomic testing to support the treatme
Slide 14: Strong New Health Economic Data For GeneSight
Strong New Health Economic Data For GeneSight Mounting Evidence Supporting Substantial Cost Savings Year-One Cost Savings With GeneSight Data in CY17 Sources: Winner JG, et al. Combinatorial pharmacogenomic guidance for psychiatric medications reduces overall pharmacy costs in a 1 year prospective e
Slide 15: Preventive Care Pilot Highly Successful
Preventive Care Pilot Highly Successful Significant Opportunity to Leverage Large Preventive Care Sales Team Treating Physician for Patients With Major Depressive Disorder Most MDD patients are seen by primary care consisting of general practice, internal medicine and OB/GYNs. Top 16,000 primary car
Slide 16: Clinical Guidelines Increasingly Recognize Vectra DA
Clinical Guidelines Increasingly Recognize Vectra DA ACR Diagnostic Guideline Review Will Occur This Fall December 2016 United Rheumatology Clinical Practice Guidelines February 2017 Creaky Joints Guidelines (Major Patient Advocacy Group) Review in Fall 2017 American College of Rheumatology Diagnost
Slide 17: New LCD Would Expand Coverage For Prolaris
New LCD Would Expand Coverage For Prolaris 50% of Prostate Cancer Patients (>100,000/yr) Would be Covered 200,000 localized prostate cancer patients Prolaris Insurance Coverage Medicare Low Risk Medicare (Favorable Intermediate) Medicare Non - Covered Commercial Non - Covered Commercial Covered
Slide 18: New Study Shows Ability to Predict Metastases
New Study Shows Ability to Predict Metastases Adding Metastases to Clinical Report Provides Added Value to Physicians
Slide 19: EndoPredict Has Both Sets of Predictive Genes
EndoPredict Has Both Sets of Predictive Genes Superior Ability to Predict Late-Stage Recurrence Proliferation Genes ER-Signaling Genes Prediction of late-stage recurrence 0-5 years Prediction of late-stage recurrence 5-10 years p<0.001 p<0.001 p=0.204 p=0.298
Slide 20: Ramping Payer Coverage for EndoPredict
Ramping Payer Coverage for EndoPredict Now Covered by Plans Representing 83 Million Lives in United States Commercial Covered Submitted dossier to Medicare in Q317 Favorable recommendation from BCBS tech assessment committee Evidence Street Coverage decisions from payers representing 83 million live
Slide 21: 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 22: Multiple PARP Clinical Studies to Report in CY17
Multiple PARP Clinical Studies to Report in CY17 8 Additional Pivotal Clinical Study Results Expected Indication Number of Studies First Data Expected Total Patients HER2- metastatic breast cancer 3 AZN olaparib data reported - OlympiAD 160,000 Neoadjuvant TNBC 1 Jun. 2017 70,000 Other ovarian 3 AZN
Slide 23: Final myPath Melanoma Studies Published
Final myPath Melanoma Studies Published Dossier Submitted to Medicare and Private Payers myPath Melanoma Diagnostic Accuracy myPath Melanoma Diagnostic Accuracy myPath Melanoma Clinical Utility n=437 patients n=736 patients n=218 patients n=182 patients Sources: Data presented at ASDP: Diagnostic Di
Slide 24: International Product Revenue Up 41%
International Product Revenue Up 41% Driven by Strong Growth and Expanding Reimbursement for EndoPredict 109% Growth French public health care system funding began in 1H CY16 covering all patients. German national reimbursement (GBA) covering local testing in authorized major centers. Submitted to U