Myriad Genetics, Inc. · NASDAQ:MYGN
Myriad Genetics — Q2 2018 Earnings Presentation
24 slides from Myriad Genetics's earnings presentation, Feb 6, 2018
Slide 1: Fiscal Second-Quarter 2018 Earnings Call
Myriad Genetics Fiscal Second-Quarter 2018 Earnings Call 02/06/2018 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 Second-Quarter Financial Results Significantly Exceed Expectations
FY 2018 Second-Quarter Financial Results Significantly Exceed Expectations 2Q18 Actual Results 2Q17 Actual Results YoY Change Revenue (in mil.) $194.0 $196.5 (1%) GAAP EPS $0.45 $0.09 400% Adjusted EPS $0.31 $0.26 19% Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com.
Slide 4: 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 5: Solid Hereditary Cancer Foundation
Solid Hereditary Cancer Foundation 4th Straight Quarter With Year-Over-Year Volume Growth Hereditary cancer revenue up slightly sequentially in-line with expectations 4th straight quarter with YoY volume growth Exceeded 3% volume growth target in 2Q18 Successful riskScore™ launch led to accelerating
Slide 6: Grow New Product Volume
Grow New Product Volume New Product Volume Grows Double-Digits; Revenue Sets New Record Double-digit YoY Growth ≈30% ≈70% New products comprise ≈70% of test volume New product YoY volume grew at double-digit rate New products set new record at 35% of total revenue EndoPredict volume up >70% sequenti
Slide 7: Expand Reimbursement Coverage For New Products
Expand Reimbursement Coverage For New Products Several Key Reimbursement Catalysts in Fiscal Year 2018 Current U.S. Reimbursement Final Medicare LCD for EndoPredict became effective Jan. 30 Prolaris favorable intermediate covered by Medicare Potential NCCN guidelines for Prolaris New Vectra DA utili
Slide 8: Improve Profitability With Elevate 2020
Improve Profitability With Elevate 2020 2nd Straight Quarter of Operating Expense Declines Adjusted Operating Expenses FY18 Targeted Savings = $17M Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com.
Slide 9: FY 2018 Second-Quarter Revenue By Product
FY 2018 Second-Quarter Revenue By Product Product 2Q18 2Q17 YoY Growth Hereditary Cancer $126.9 $143.9 (12%) GeneSight $31.7 $21.7 46% Vectra DA $11.1 $10.7 4% Prolaris $5.0 $3.1 61% EndoPredict $2.0 $1.6 25% Other $2.5 $2.9 (14%) Total Molecular Diagnostic Revenue $179.2 $183.9 (3%) Pharmaceutical
Slide 10: Fiscal Second-Quarter Financial Results
Fiscal Second-Quarter Financial Results Adjusted Earnings Per Share Increase 19% Over Q2 FY2017 2Q18 2Q17 YoY Growth Total Revenue $194.0 $196.5 (1%) Gross Profit $149.6 $152.1 (2%) Gross Margin 77.1% 77.4% -30 bps Operating Income $4.4 $17.0 (74%) Adjusted Operating Income $28.2 $23.6 20% Adjusted
Slide 11: 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 = $1.90
Slide 12: FY18 and 3Q18 Financial Guidance
FY18 and 3Q18 Financial Guidance Raising FY18 Financial Outlook Metric Fiscal Year 2018 Fiscal Third-Quarter 2018 Revenue $760 to $770 million $186 to $188 million GAAP Diluted EPS $1.82 to $1.87 $0.11 to $0.13 Adjusted EPS $1.11 to $1.16 $0.26 to $0.28 Copyright © 2018 Myriad Genetics, Inc., all ri
Slide 13: Potential Financial Catalysts
Potential Financial Catalysts Good Progress on Multiple Possibilities for Material Upsides Product Potential Catalyst Progress Continued Improvements in Volume Growth >3% growth in 1H18 Metastatic Breast Cancer Indication FDA approval in 3Q18 Additional Reimbursement Successful RCT study Successful
Slide 14: riskScore Validation Presented at SABCS
riskScore Validation Presented at SABCS Identifies More Elevated Risk Patients Than BRCA Testing 7% of patients >30% lifetime risk 38% of patients >20% lifetime risk 12% 20% 30% 1% 66% Lifetime Risk of Breast Cancer General population
Slide 15: Expanded Opportunity in Hereditary Prostate Cancer Testing
Expanded Opportunity in Hereditary Prostate Cancer Testing Volume Up 10x in Last Year Previous Guidelines 20,000 Patients New Guidelines 26,000 Patients 46,000 Patient Opportunity New consensus guidelines published in the Journal of Clinical Oncology recommend routine counseling for prostate patient
Slide 16: Additional FDA Approval for BRACAnalysis CDx
Additional FDA Approval for BRACAnalysis CDx 125,000 Metastatic Breast Cancer Patients Now Eligible for Testing Previous Guidelines 20,000 Patients New Guidelines 26,000 Patients 125,000 patients highly motivated to know BRCA status Collaborating with AstraZeneca and Merck Launched one of our larges
Slide 17: Continued Opportunity for Market Expansion With CDx
Continued Opportunity for Market Expansion With CDx Additional Indications Could Total $700M Opportunity Copyright © 2018 Myriad Genetics, Inc. all rights reserved. www.myriad.com CDx U.S. Market Opportunity (in mil.) Indications for BRACAnalysis CDx or myChoice HRD/Plus
Slide 18: GeneSight Study Significant for Most Important Endpoints
GeneSight Study Significant for Most Important Endpoints Beginning Discussions With Commercial Payers Remission, response, and symptom improvement were durable and continued to improve over the 24-week study period 40 antidepressant FDA registration studies in the last 20 years: All were compared to
Slide 19: Two Additional Major Studies on GeneSight Underway
Two Additional Major Studies on GeneSight Underway Will Further Strengthen Supporting Clinical Evidence for the Test IMPACT Study PRIME Care (VA) Study Conducted in conjunction with the Canadian Centre for Addiction and Mental Health Open-label study with 8,000 patients enrolled to date with any men
Slide 20: Pathway To Expanded Vectra DA Reimbursement
Pathway To Expanded Vectra DA Reimbursement Additional Data and ACR Guidelines by End of Fiscal Year Payer Questions Progress Is Vectra DA included in guidelines? Included in United Rheumatology guidelines in Dec. 2016 (represents 10% of rheumatologists) Considered for ACR guidelines H2FY18 How does
Slide 21: New Data Supports Vectra DA Use for Assessing Cardiac Risk
New Data Supports Vectra DA Use for Assessing Cardiac Risk Potential Future Expanded Indication on Test Report Risk of Major Cardiac Event ≈3x Increased Risk Copyright © 2018 Myriad Genetics, Inc. all rights reserved. www.myriad.com Source: Ann Rheumatic Disease Dec. 2017 - Biomarker-related risk fo
Slide 22: First Chemopredictive Data Presented on EndoPredict
First Chemopredictive Data Presented on EndoPredict Highly Predictive of Response to Neoadjuvant Chemotherapy Copyright © 2018 Myriad Genetics, Inc. all rights reserved. www.myriad.com EndoPredict Low Score EndoPredict High Score p value Response to neo-adjuvant chemotherapy 0% 26.4% 0.0001 Response
Slide 23: myPath Melanoma Represents Significant Market
myPath Melanoma Represents Significant Market 300,000 Patients Per Year in the U.S. have Uncertain Diagnosis Copyright © 2018 Myriad Genetics, Inc. all rights reserved. www.myriad.com ≈ 2.0 Million Skin Biopsies for Melanoma Per Year ≈ 15% Discordance 300,000 Uncertain Cases $500M U.S. Market Opport
Slide 24: 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