Myriad Genetics, Inc. · NASDAQ:MYGN
Myriad Genetics — Q3 2019 Earnings Presentation
21 slides from Myriad Genetics's earnings presentation, May 7, 2019
Slide 1: Myriad Genetics Fiscal Third-Quarter 2019 Earnings Call
Myriad Genetics Fiscal Third-Quarter 2019 Earnings Call May 7, 2019 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 Fiscal Year 2019 Highlights
Third Quarter Fiscal Year 2019 Highlights Revenue of $216.6 million up 18% Test volume grew 51% YOY with 76% of volume from new products Prenatal volumes grew 7% sequentially GeneSight volumes grew 19% YOY Adjusted EPS of $0.46 up 35% Final Medicare LCD for myPath Melanoma Approval of BRACAnalysis C
Slide 4: Financial Overview
Financial Overview
Slide 5: Fiscal Third-Quarter Revenue By Product
Fiscal Third-Quarter Revenue By Product Product 3Q19 3Q18 YoY Growth Hereditary Cancer $117.6 $113.1 4% GeneSight $29.6 $30.4 (3%) Prenatal Testing $30.6 - NM Vectra $11.3 $15.0 (25%) Prolaris $6.9 $6.4 8% EndoPredict $2.8 $2.3 22% Other $1.7 $2.1 (19%) Total Molecular Diagnostic Revenue $200.5 $169
Slide 6: Fiscal Third-Quarter Financial Results
Fiscal Third-Quarter Financial Results GAAP Results Adjusted Results 3Q19 3Q18 YoY Growth 3Q19 3Q18 YoY Growth Total Revenue $216.6 $183.1 18% $216.6 $183.1 18% Gross Profit $168.0 $139.0 21% $168.6 $139.5 21% Gross Margin 77.6% 75.9% +160 bps 77.8% 76.2% +160 bps Operating Income $5.9 $13.8 (57%) $
Slide 7: FY19 and 4Q FY19 Financial Guidance
FY19 and 4Q FY19 Financial Guidance Metric Fiscal Year 2019 4Q19 Revenue $856 million $220 million GAAP Diluted EPS $0.28 $0.16 Adjusted EPS $1.74 $0.48
Slide 8: Critical Success Factors to Achieve Strategic Goals
Critical Success Factors to Achieve Strategic Goals Expand reimbursement coverage for new products Build upon solid hereditary cancer foundation Increase RNA kit revenue internationally Improve profitability with Elevate 2020 STRATEGIC GOALS >10% REVENUE GROWTH 7 PRODUCTS >$50M >10% INT’L REVENUE >3
Slide 9: Recent Guideline Expansions in Hereditary Cancer Market
Recent Guideline Expansions in Hereditary Cancer Market NCCN 2018 met BC ASBS 2019 NCCN 2018 NCCN 2018 NCCN 2018 Patients That Meet Criteria (in 000s) Old Criteria New Criteria 300,000 additional patients/year meet guidelines
Slide 10: New Companion Diagnostic Opportunities
New Companion Diagnostic Opportunities $220M in New Market Opportunity in the U.S. 40,000 patients 30,000 patients 20,000 patients Ovarian Cancer $80M U.S. Market Castrate Resistant Met. Prostate Cancer $60M U.S. Market Pancreatic Cancer $80M U.S. Market
Slide 11: Pivotal Clinical Data Supports myChoice HRD PMA
Pivotal Clinical Data Supports myChoice HRD PMA QUADRA Study (Platinum Sensitive Patients Treated With Nirparib) Objective Response Rate Source: Moore et al. QUADRA: Niraparib monotherapy for late-line treatment of ovarian cancer (QUADRA): a multicentre, open-label, single-arm, phase 2 trial. Lancet
Slide 12: Markets Remain Highly Underpenetrated
Markets Remain Highly Underpenetrated Three Pillars of Prenatal Market Success A frictionless customer experience with Myriad Complete Trusted advisors with broad physician reach and comprehensive menu Differentiate products through pioneering science
Slide 13: New Data Demonstrates Prequel Highly Accurate Below 4% Fetal Fraction
New Data Demonstrates Prequel Highly Accurate Below 4% Fetal Fraction 50x Fewer Patients Get an Indeterminate Result with Prequel 1 in 1000 no call rate 1 in 20 no call rate Competitive Tests Amniocentesis or CVS $1,500 cost Highly invasive 1 in 200 risk of miscarriage
Slide 14: myPath Melanoma $450 Million U.S. Market Opportunity
myPath Melanoma $450 Million U.S. Market Opportunity Highly Concentrated Sales Channel Enables Cost Effective Commercialization ≈ 2.0 Million Skin Biopsies for Melanoma Per Year ≈ 15% Discordance 300,000 Indeterminate Cases $450 Million U.S. Market 1,200 U.S. Dermatopathologists
Slide 15: Strong Supporting Evidence for myPath Melanoma
Strong Supporting Evidence for myPath Melanoma Three Large Clinical Validation Studies Show Over 90% Diagnostic Accuracy at Differentiating Melanoma from Benign Lesions myPath Melanoma Diagnostic Accuracy myPath Melanoma Diagnostic Accuracy myPath Melanoma Clinical Utility n=437 patients n=736 patie
Slide 16: Continued Progress on GeneSight Reimbursement Coverage
Continued Progress on GeneSight Reimbursement Coverage Fully Reimbursed GeneSight Would Generate >$600 Million in Annual Revenue Medicare (15%) Commercial Insurers (48%) Medicaid (37%) Dossier with payers covering 90% of commercial lives CareFirst coverage Contracted with payers representing 25% of
Slide 17: GUIDED Analysis Demonstrates GeneSight Works for Indicated Patients
GUIDED Analysis Demonstrates GeneSight Works for Indicated Patients All Three Clinical Endpoints Achieve Statistical Significance GeneSight Indication for Use: “For physicians contemplating an alteration in neuropsychiatric medication for patients diagnosed with major depressive disorder (MDD) who a
Slide 18: New Evidence Supports Expanded Carrier Screening
New Evidence Supports Expanded Carrier Screening Data Driven Evaluations of Guideline Criteria Show 38 or More Genes Should Be Included in Screening 55,000 patient study published in Genetics in Medicine 176 genes in ForeSight 38 gene panel meeting professional guidelines and finding most patients 1
Slide 19: Increasing Coverage for Prolaris and myPath Melanoma
Increasing Coverage for Prolaris and myPath Melanoma New Commercial Coverage Decisions for Prolaris and Medicare Reimbursement for MyPath Melanoma 225 Sales Reps 80 Sales Reps Commercial Insurers Medicare Low & Favorable Intermediate 225 Sales Reps Commercial Insurers Medicare
Slide 20: Progress in Japan with CDx and New Reimbursement Coverage for EndoPredict
Progress in Japan with CDx and New Reimbursement Coverage for EndoPredict Driving Growth Opportunities New Reimbursement Coverage in International Markets UK coverage from NICE (2Q19) First region in Italy covers EndoPredict Greece covers EndoPredict Japanese coverage for BRACAnalysis CDx as a compa
Slide 21: Myriad: The Investment Thesis
Personalized medicine is entering a hyper-growth phase Molecular diagnostics are the keystone to improving patient outcomes and eliminating wasted spend Myriad is the global leader in this market Near-term catalysts can triple earnings Compelling investment opportunity Myriad: The Investment Thesis