Myriad Genetics, Inc. · NASDAQ:MYGN
Myriad Genetics — Q1 FY2016 Earnings Presentation
23 slides from Myriad Genetics's earnings presentation, Nov 3, 2015
Slide 1: Myriad Genetics Fiscal First Quarter 2016 Earnings Call
Myriad Genetics Fiscal First Quarter 2016 Earnings Call 11/03/2015 Exhibit 99.2 Copyright © 2015 Myriad Genetics, Inc., all rights reserved. www.Myriad.com.
Slide 2: Forward Looking Statements
Forward Looking Statements Some of the information presented here today 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 results
Slide 3: Strong Start to Fiscal Year 2016
Strong Start to Fiscal Year 2016 Q1FY16 Actual Results Q1FY16 Company Guidance Difference From Mid-Point Revenue $183.5M $176M to $178M +$6.5M Adjusted EPS $0.41 $0.34 to $0.36 +$0.06 GAAP EPS $0.37 $0.30 to $0.32 +$0.06
Slide 4: Hereditary Cancer Revenue Returns to YoY Growth
Hereditary Cancer Revenue Returns to YoY Growth Hereditary Cancer Revenue Grew 4% YoY Hereditary Cancer Revenue Celebrity Publicity Impact Estimated Market Share Hereditary Cancer Revenue (in $ mil.) Estimated Market Share
Slide 5: Achieved Objective of Having 100% of Targeted Accounts Converted By End of 1Q16
Achieved Objective of Having 100% of Targeted Accounts Converted By End of 1Q16 myRisk Hereditary Cancer Conversion Targeted Accounts Actual Conversion Estimated Future Conversion
Slide 6: Hereditary Cancer Market Expansion Plans on Track
Hereditary Cancer Market Expansion Plans on Track Indication Added Market Potential Guidelines Contracting Colon @ 5% risk +$100M 45% All Endometrial +$150M 45% Breast <60 yrs +$150M FY16 FY17 All Pancreatic Cancer +$125M FY17 FY17 Potential Market Expansion >$500M
Slide 7: Myriad Continues to Extend Its Quality Advantages in Variant Classification
Myriad Continues to Extend Its Quality Advantages in Variant Classification Two New Proprietary Methodologies Advanced artificial intelligence literature search algorithm: Found 36% more literature references Evaluates RNA transcription and functionality to aid in variant classification LitVIEW™: in
Slide 8: 50% of Hereditary Cancer Revenue Now Under Long-Term Arrangement
50% of Hereditary Cancer Revenue Now Under Long-Term Arrangement % of HC Business Under LT Arrangement Change in ASP* FY13 to 1Q16 *Average selling price
Slide 9: Pipeline Total Addressable Market and Current Reimbursement
Pipeline Total Addressable Market and Current Reimbursement Current Reimbursement ($1.0 Billion) Total Addressable Market ($11.3 Billion) (in billions)
Slide 10: Vectra DA Volume Trends
Vectra DA Volume Trends Vectra DA Volumes New management and sales tactics 31% CAGR
Slide 11: Vectra DA Potential to Guide Treatment Decisions in Three New Studies
Vectra DA Potential to Guide Treatment Decisions in Three New Studies Study Methotrexate Incomplete Responders (Hambardzumyan et al.) Prediction of Flares in Patients Discontinuing TNFi Therapy (Lamers-Karnebeek et al.) Prediction of Relapse in Patients Tapering DMARDs (Rech et al.) Conclusion “Pati
Slide 12: Working Towards Broader Private Payer Coverage for Vectra DA
Working Towards Broader Private Payer Coverage for Vectra DA Data Mining FY16 Retrospective Study FY17 Prospective Study FY18 % of private payer covered lives Distribution of private payers’ data requests
Slide 13: Continued Strong Prolaris Growth Trends
Continued Strong Prolaris Growth Trends Prolaris Volumes 16% sequential growth 119% YoY Growth
Slide 14: New Report Format Drives Physician Behavior Change
New Report Format Drives Physician Behavior Change Active Surveillance Threshold 3% Mortality 20% Mortality Urologists followed the treatment recommendations provided by the active surveillance threshold 85% of the time Pathology Recommends Active Surveillance Pathology Does Not Recommend Active Sur
Slide 15: myPath Melanoma Finds 100% of Future Metastatic Lesions in Outcomes Study
myPath Melanoma Finds 100% of Future Metastatic Lesions in Outcomes Study MyPath Melanoma Score Histopathology Diagnosis Clinical Outcome Melanoma Metastases Malignant 61 14 Indeterminate 2 0 Benign 2 0 Total 65 14 Sensitivity 97% 100% *ASDP presentation 2015 – Correlation of myPath Melanoma gene ex
Slide 16: myChoice HRD Gives the Most Complete Picture of Response to DNA-Damaging Agents
myChoice HRD Gives the Most Complete Picture of Response to DNA-Damaging Agents LST odds ratio = 4.7 LOH odds ratio = 3.3 Odds ratio of predicting pCR for myChoice HRD is 5.5 All 3 Technologies Required TAI odds ratio = 2.8 Launching this month for platinum indication
Slide 17: 4% of Global Revenue From International Markets in 1Q16
4% of Global Revenue From International Markets in 1Q16 International Product Revenue as a Percentage of Total Revenue Goal to have international product revenue comprise 10% of sales by FY20
Slide 18: Myriad Pursuing Kit Strategy Outside the United States
Myriad Pursuing Kit Strategy Outside the United States RNA Expression Protein Evaluating instrument platforms
Slide 19: Prolaris Reimbursement Status and Plans Outside the United States
Prolaris Reimbursement Status and Plans Outside the United States Country Private Insurance Public Insurance Germany In progress Filing with IQWIG/GBA after CE Mark in 2Q16 UK Most plans cover Prolaris Filing with NICE after CE Mark in 2Q16 France NA Filing with HAS after CE Mark in 2Q16 Switzerland
Slide 20: Fiscal First Quarter 2016 Revenue By Product
Fiscal First Quarter 2016 Revenue By Product Product 1Q16 1Q15 YoY Growth Hereditary Cancer $156.7 $150.6 4% Vectra DA $11.4 $10.6 8% Other $3.8 $3.3 15% Total Molecular Diagnostic Revenue $171.9 $164.5 5% Pharmaceutical & Clinical Services $11.6 $4.3 170% Total Revenue $183.5 $168.8 9% (in millions
Slide 21: Fiscal First Quarter Financial Results
Fiscal First Quarter Financial Results 1Q16 1Q15 YoY Growth Total Revenue $183.5 $168.8 9% Gross Profit $147.0 $133.9 10% Gross Margin 80.1% 79.3% NA Operating Income $43.3 $25.9 67% Adjusted Operating Income $46.5 $29.3 59% Adjusted Operating Margin 25.3% 17.4% NA Net Income $26.6 $16.0 66% Diluted
Slide 22: Guidance Assumptions for FY16
Guidance Assumptions for FY16 DOWNSIDE RISKS BASE CASE FOR GUIDANCE UPSIDE POTENTIAL Hereditary cancer market losses > market growth Hereditary cancer revenue of $638 to $649 million Hereditary cancer market losses < market growth Impact from expanded payer coverage for colon and endometrial cancer
Slide 23: 2Q16 and FY16 Financial Guidance
2Q16 and FY16 Financial Guidance Metric Fiscal Year 2016 Fiscal Second Quarter 2016 Revenue $750 to $770 million $188 to $190 million Diluted EPS $1.40 to $1.45 $0.36 to $0.38 Adjusted EPS $1.60 to $1.65 $0.40 to $0.42