Myriad Genetics, Inc. · NASDAQ:MYGN
Myriad Genetics — Q1 FY2018 Earnings Presentation
23 slides from Myriad Genetics's earnings presentation, Nov 7, 2017
Slide 1: Myriad Genetics Fiscal First-Quarter 2018 Earnings Call
Myriad Genetics Fiscal First-Quarter 2018 Earnings Call 11/07/2017 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: FY2018 First-Quarter Financial Results Significantly Exceeded Expectations
FY2018 First-Quarter Financial Results Significantly Exceeded Expectations 1Q18 Actual Results 1Q17 Actual Results YoY Change Guidance Revenue (in mil.) $190.2 $177.5 7% $181 - $183 GAAP EPS $1.15 ($0.02) NM $0.05 - $0.07 Adjusted EPS $0.26 $0.23 13% $0.19 - $0.21
Slide 4: Critical Success Factors to Achieve Strategic Goals
Critical Success Factors to Achieve 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 for new products Increase international
Slide 5: Stabilize Hereditary Cancer Revenue
Stabilize Hereditary Cancer Revenue Continued Strong Volume Growth and Stable Pricing Outlook VOLUME Exceeded 3% volume growth target in 1Q18 3rd straight quarter with YoY volume growth Launched riskScore™ which broadens competitive moat and could deepen market penetration PRICING In line with expec
Slide 6: Grow New Product Volume
Grow New Product Volume Double-Digit New Product Volume Growth in Fiscal Year 1Q18 New products comprise ≈70% of test volume Adjusted new product volume grew at double-digit rate year-over-year* EndoPredict reaches 2% market share in U.S. Double-digit YoY Growth ≈30% ≈70% *includes full quarterly Ge
Slide 7: Expand Reimbursement Coverage for New Products
Expand Reimbursement Coverage for New Products Significant Progress Towards Broader Coverage Current U.S. Reimbursement GeneSight showed statistically significant improvement in response and remission in MDD Medicare begins reimbursement for Prolaris favorable intermediate patients Signed Vectra DA
Slide 8: Increase Revenue Internationally
Increase Revenue Internationally Two Key Events in 1H18 Canada: Launched first GeneSight demonstration study with Sun Life Financial which covers 20% of Canadian population Canadian Market opportunity = 1,000,000 treatment resistant depression patients per year Japan: Submitted BRACAnalysis CDx for
Slide 9: Improve Profitability With Elevate 2020
Improve Profitability With Elevate 2020 Significant Sequential Reduction in Adjusted Operating Expenses $129.6 $121.9 $7.7M sequential decline
Slide 10: Fiscal First-Quarter 2018 Revenue By Product Increased 7%
Fiscal First-Quarter 2018 Revenue By Product Increased 7% Over Q1 FY2017 Product 1Q18 1Q17 YoY Growth Hereditary Cancer $126.7 $139.3 (9%) GeneSight $28.8 $7.2 300% Vectra DA $16.0 $11.6 38% Prolaris $2.9 $2.9 0% EndoPredict $1.9 $1.7 12% Other $2.5 $2.4 4% Total Molecular Diagnostic Revenue $178.8
Slide 11: Fiscal First-Quarter Financial Results
Fiscal First-Quarter Financial Results Adjusted EPS Increased 13% Over Q1 FY2017 (in millions except per share data) 1Q18 1Q17 YoY Growth Total Revenue $190.2 $177.5 7% Gross Profit $147.2 $137.5 7% Gross Margin 77.4% 77.5% -10 BP Operating Income $87.4 $5.7 1433% Adjusted Operating Income $24.7 $21
Slide 12: FY18 and 2Q18 Financial Guidance
FY18 and 2Q18 Financial Guidance Maintaining Fiscal Year 2018 Guidance Metric Fiscal Year 2018 Fiscal Second-Quarter 2018 Revenue $750 to $770 million $187 to $189 million GAAP Diluted EPS $1.41 to $1.46 $0.08 to $0.10 Adjusted EPS $1.00 to $1.05 $0.22 to $0.24 For additional information on GAAP to
Slide 13: 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 14: riskScore Represents New Epoch in Hereditary Cancer
riskScore Represents New Epoch in Hereditary Cancer Further Widens Already Substantial Competitive Moat Before After 100% of patients get a definitive answer 100% of patients get a definitive answer 10% of patients get a definitive answer
Slide 15: GeneSight RCT Achieves Gold Standard Outcomes
GeneSight RCT Achieves Gold Standard Outcomes Highly Statistically Significant Improvement in Response & Remission Rates Statistically significant improvement in gold-standard outcomes of response and remission at eight weeks Improvement in HAMD-17 scores at eight weeks approached statistical signif
Slide 16: Two Most Critical Endpoints are Response and Remission
Two Most Critical Endpoints are Response and Remission Influential Guidelines Emphasize Getting “Well” and not just “Better” Professional Guideline Statement American Psychiatric Association (APA) Depression Guidelines “The overall goals of treatment of major depressive disorder should focus on alle
Slide 17: IMPACT Study Validates the Use of GeneSight in GAD
IMPACT Study Validates the Use of GeneSight in GAD Leads to Statistically Significant Better Outcomes GeneSight guided group had statistically significant reduction in GAD-7 scores 25% reduction in benzodiazepine use in patients receiving congruent therapy Net cost savings of $6,747 per patient from
Slide 18: Vectra DA Outperforms Conventional Measures of Disease Activity
Vectra DA Outperforms Conventional Measures of Disease Activity 3x Better at Predicting Radiographic Progression Relative Risk of Radiographic Progression (High Versus Low Scores) n = 748 (p=0.23) (p=0.01) (p<0.0001) [1] LEIDEN: van der Helm-van Mil et al. Rheumatology (Oxford). 2013;53:839–846. [2]
Slide 19: Vectra DA Again Outperforms Conventional Disease Activity Measures
Vectra DA Again Outperforms Conventional Disease Activity Measures 4x Better at Predicting Radiographic Progression Radiographic Progression Likelihood Ratio* 4x as Predictive as DAS28 (p=0.079) (p=0.049) (p=0.04) (p=0.032) (p=3.6x10-4) n = 1,411 *F-Statistic [1] Curtis et al. Arthritis Rheumatology
Slide 20: New 60,596 Patient Clinical Utility Study on Vectra DA
New 60,596 Patient Clinical Utility Study on Vectra DA Doctors Appropriately Modify Treatment Decisions Based Upon the Vectra DA Score (p<0.0001) (p<0.0001) Proportion of Patients That Changed Therapy Low (<30) Moderate (30-44) High (>44) 2.2x 2.6x
Slide 21: EndoPredict Outperforms Oncotype Dx in Second Study
EndoPredict Outperforms Oncotype Dx® in Second Study EndoPredict Has >2x The Prognostic Power and Predicts Late Stage Metastases Prognostic Performance 0-10 Years Prognostic Performance 5-10 Years *Comparison of prognostic performance of Oncotype Dx RS versus EndoPredict in women with intermediate r
Slide 22: Submitted Supplemental PMA for HER2- Metastatic BrCa
Submitted Supplemental PMA for HER2- Metastatic BrCa Expect Approval in 3Q18; Untested Population Represents 125,000 Women 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 d
Slide 23: Worldwide Leader in Personalized Medicine
Worldwide Leader in Personalized Medicine We are entering the golden age for personalized medicine Molecular diagnostics are the keystone for improving patient outcomes while eliminating waste in healthcare spending Myriad is the pioneer of “research-based” and “education-centric” business model for