Myriad Genetics, Inc. · NASDAQ:MYGN
Myriad Genetics — Q4 2018 Earnings Presentation
26 slides from Myriad Genetics's earnings presentation, Aug 21, 2018
Slide 1: Myriad Genetics Fiscal Fourth-Quarter 2018 Earnings Call
Myriad Genetics Fiscal Fourth-Quarter 2018 Earnings Call 08/21/2018 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: FY 2018 Fourth-Quarter Financial Results Significantly Exceeded Expectations
FY 2018 Fourth-Quarter Financial Results Significantly Exceeded Expectations 4Q18 Actual Results 4Q17 Actual Results (restated) YoY Change FY18 Actual Results FY18 Initial Guidance Revenue (in mil.) $200.9 $199.6 1% $772.6 $750-$770 GAAP EPS $0.18 $0.18 0% $1.82 $0.37-$0.42 Adjusted EPS $0.38 $0.29
Slide 4: Pioneering Science in Fiscal Year 2018
Pioneering Science in Fiscal Year 2018 Multiple Significant Scientific Achievements Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com. Launch of riskScore: 4th epoch in hereditary cancer testing Genesight GUIDED study met Remission & Response endpoints BRACAnalysis CDx appr
Slide 5: Review of Fiscal Year 2018
Review of Fiscal Year 2018 New Product Sample Volume and Revenue Set New Records Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com. New Product FY18 Revenue = $212M Product YoY Growth GeneSight 59% Vectra DA 31% Prolaris 73% EndoPredict 16% New Products 1% New Products 70%
Slide 6: Critical Success Factors to Achieving Strategic Goals
Critical Success Factors to Achieving Strategic Goals Grow new product volume STRATEGIC GOALS CRITICAL SUCCESS FACTORS >10% Revenue Growth >30% Operating Margin 7 Products >$50M >10% International Revenue Expand reimbursement coverage for new products Increase RNA kit revenue internationally Improve
Slide 7: Solid Hereditary Cancer Foundation
Solid Hereditary Cancer Foundation Six Straight Quarters of YoY Volume Growth With Stable Pricing Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com. Hereditary Cancer Revenue 6 sequential quarters with YoY volume growth 3 sequential quarters with stable pricing Launched ris
Slide 8: Record GeneSight Ordering Physicians and Volume
Record GeneSight Ordering Physicians and Volume Ordering Physicians Have Nearly Doubled in Last Two Years Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com. Ordering Doctors Over 15,000 ordering doctors in 4Q18 Record new ordering physicians RCT Data
Slide 9: Advances in Reimbursement Coverage For New Products
Advances in Reimbursement Coverage For New Products New Product Reimbursement 1.6B in Potential Revenue Current U.S. Coverage Signed eight payers for Prolaris representing 20M lives including a top 10 national payers Announced CareFirst® coverage for GeneSight Large employer with 30,000 employees to
Slide 10: International Developments
International Developments Kit-Based Strategy With Restructuring to Global LDT Laboratory Revised NICE draft guidance document on breast cancer prognostics recommends EndoPredict as one of three diagnostic tests Received pre market approval for BRACAnalysis CDx in Japan for HER2- metastatic breast c
Slide 11: Improve Profitability With Elevate 2020
Improve Profitability With Elevate 2020 Adjusted Operating Margin Improves 380BP Year-Over-Year Total Expenses ($M) FY18 Targeted Savings = $17M Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com. Adjusted Operating Margin 13.6% 17.4%
Slide 12: FY 2018 Fourth-Quarter Revenue By Product
FY 2018 Fourth-Quarter Revenue By Product Product 4Q18 4Q17 (Restated) YoY Growth Hereditary Cancer $126.8 $143.5 (12%) GeneSight $33.9 $25.5 33% Vectra DA $15.1 $10.3 47% Prolaris $7.0 $3.0 133% EndoPredict $2.8 $2.0 40% Other $2.0 $2.7 (26%) Total Molecular Diagnostic Revenue $187.7 $187.0 0% Phar
Slide 13: Fiscal Fourth-Quarter Financial Results
Fiscal Fourth-Quarter Financial Results Adjusted Earnings Per Share Increase 31% Over Q4 FY2017 GAAP Results Adjusted Results 4Q18 4Q17 (Restated) YoY Growth 4Q18 4Q17 (Restated) YoY Growth Total Revenue $200.9 $199.6 0% $200.9 $199.6 0% Gross Profit $155.2 $157.1 (1%) $158.0 $157.1 1% Gross Margin
Slide 14: Comparison of Adjusted EPS and FCF/Share
Comparison of Adjusted EPS and FCF/Share Adjusted EPS Significantly Understates Cash Earnings Power Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com. TTM FCF/Share = $1.82
Slide 15: FY17 & FY18 Revenue and EPS After Adjustments
FY17 & FY18 Revenue and EPS After Adjustments Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com. Revenue (in mil.) FY18 FY17 (Restated) YoY Growth Q1 $187.9 $178.8 5% Q2 $192.7 $196.7 (2%) Q3 $191.1 $194.8 (2%) Q4 $200.9 $199.6 1% Total $772.5 $769.9 0% Adjusted EPS FY18 FY
Slide 16: FY19 Financial Guidance
FY19 Financial Guidance Metric Fiscal Year 2019 Revenue $880 to $890 million GAAP Diluted EPS $0.40 to $0.45 Adjusted EPS $1.70 to $1.75 Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com.
Slide 17: FY19 Revenue Guidance Bridge
FY19 Revenue Guidance Bridge Overall revenue growth >20% Assuming No Counsyl Synergies Fiscal Year 2018 ($M) As Reported $772.6 ASC-606 Impact ($28.9) Clinic (6 months) ($12.7) Fiscal Year 2019 Guidance YoY Growth Post ASC-606, Clinic $731.0 $750-$760 3% - 4% Copyright © 2018 Myriad Genetics, Inc.,
Slide 18: FY19 Adjusted EPS Guidance Bridge
FY19 Adjusted EPS Guidance Bridge Adjusted EPS growth > 16% Fiscal Year 2018 Adjusted EPS $1.20 Stock Based Compensation $0.26 ASC-606 Impact $0.01 Fiscal Year 2019 Guidance YoY Growth New Adjusted EPS $1.47 $1.70-$1.75 16% - 19% Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myria
Slide 19: Potential Financial Catalysts in FY19
Potential Financial Catalysts in FY19 Multiple Opportunities for Material Upside Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com. Product Current Status Initiative Annualized Financial Impact GeneSight Coverage 6% coverage Commercial payers, Medicare and Medicaid coverage
Slide 20: 1Q19 Financial Guidance
1Q19 Financial Guidance Metric First Quarter Fiscal Year 2019 Revenue $200 to $202 million GAAP Diluted EPS ($0.08) to ($0.06) Adjusted EPS $0.28 to $0.30 Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com.
Slide 21: Hereditary Cancer Upsides in Fiscal Year 2019
Hereditary Cancer Upsides in Fiscal Year 2019 Several Significant Contributors to Growth Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com. Companion Diagnostics Expanded Guidelines riskScore Continued launch of BRACAnalysis CDx in metBC in U.S. and Japan BRACAnalysis CDx i
Slide 22: IMPACT Study Published
Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com. IMPACT Study Published Primary Care Physicians Have Even Better Outcomes Than Psychiatrists Clinical Outcome Primary Care Physicians Psychiatrists % Difference p-value GUIDED Study Results (Genesight Arm) Symptom Improvemen
Slide 23: Self-Insured Employers Another Avenue to Coverage
Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com. Self-Insured Employers Another Avenue to Coverage Comprise 50 Percent of Commercial Lives in the United States 50% ≈30,000 employees ≈450,000 employees Other Self-Insured Employer
Slide 24: Tripling Number of Physician Targets
Tripling Number of Physician Targets Guidance Assumes No Contribution From 9,000 Myriad Physicians Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com. 16,000 Women’s Health Call Points 37,000 OBGYNs in Clinical Practice 9,000 Unique Ordering Physicians 3,500 Unique Ordering
Slide 25: Significant Expansion in Prolaris Reimbursement
Significant Expansion in Prolaris Reimbursement 8 Commercial Payers Now Cover the Test Totaling 20 Million Lives 225 Sales Reps 80 Sales Reps Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com. Commercial Insurers 20 million commercial lives under coverage Medicare Low & Fav
Slide 26: 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