Myriad Genetics, Inc. · NASDAQ:MYGN
Myriad Genetics — Q3 2018 Earnings Presentation
28 slides from Myriad Genetics's earnings presentation, May 8, 2018
Slide 1: Myriad Genetics Fiscal Third-Quarter 2018 Earnings Call
Myriad Genetics Fiscal Third-Quarter 2018 Earnings Call 05/08/2018 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 Third-Quarter Financial Results Significantly Exceed Expectations
FY 2018 Third-Quarter Financial Results Significantly Exceed Expectations 3Q18 Actual Results 3Q17 Actual Results YoY Change Revenue (in mil.) $193.5 $196.9 (2%) GAAP EPS $0.16 $0.06 167% Adjusted EPS $0.31 $0.27 15% 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 5th Straight Quarter With Year-Over-Year Volume Growth Hereditary cancer revenue exceeds expectations 5th straight quarter with YoY volume growth Exceeded three percent year-over-year volume target Successful riskScore™ launch led to accelerating growth in Preventi
Slide 6: Grow New Product Volume
Grow New Product Volume New Products Set Record With 71% of Volume and 36% of Revenue Double-digit YoY Growth ≈29% ≈71% New products comprise ≈71% of test volume New product YoY volume grew at double-digit rate New products set new record at 36% of total revenue Record GeneSight volume Prolaris and
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 New NCCN guidelines for Prolaris AACU and LUGPA position paper provides further support for Prolaris GeneSight
Slide 8: International Restructuring and Approvals
International Restructuring and Approvals Kit-Based Strategy With Global LDT Laboratory Shift LDT testing to single U.S. based laboratory Selling German clinic and closing Munich laboratory Continue with kit manufacturing and laboratory in Cologne Germany Received pre-market approval for BRACAnalysi
Slide 9: Improve Profitability With Elevate 2020
Improve Profitability With Elevate 2020 3rd 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 10: FY 2018 Third-Quarter Revenue By Product
FY 2018 Third-Quarter Revenue By Product Product 3Q18 3Q17 YoY Growth Hereditary Cancer $123.3 $140.8 (12%) GeneSight $30.4 $23.9 27% Vectra DA $15.0 $11.2 34% Prolaris $6.5 $3.4 91% EndoPredict $2.3 $2.3 0% Other $2.2 $3.6 (39%) Total Molecular Diagnostic Revenue $179.7 $185.2 (3%) Pharmaceutical &
Slide 11: Fiscal Third-Quarter Financial Results
Fiscal Third-Quarter Financial Results Adjusted Earnings Per Share Increase 15% Over Q3 FY2017 3Q18 3Q17 YoY Growth Total Revenue $193.5 $196.9 (2%) Gross Profit $149.4 $152.6 (2%) Gross Margin 77.2% 77.5% -30 bps Operating Income $17.0 $7.7 121% Adjusted Operating Income $28.6 $24.0 19% Adjusted Op
Slide 12: 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 = $1.72
Slide 13: FY18 Financial Guidance
FY18 Financial Guidance Raising FY18 Financial Outlook Again Metric Fiscal Year 2018 Revenue $771 to $773 million GAAP Diluted EPS $1.87 to $1.89 Adjusted EPS $1.19 to $1.21 Copyright © 2018 Myriad Genetics, Inc., all rights reserved. www.Myriad.com.
Slide 14: GeneSight Psychotropic for the management of major depressive disorder
GeneSight® Psychotropic for the management of major depressive disorder 14
Slide 15: Burden of MDD
Burden of MDD More than 1 out of 20 Americans1 Leading cause of disability in the U.S. for ages 15 to 442 6.7% U.S. adults experienced episode in last 12 months (>16 million)2 16.6% lifetime prevalence, equating to ~33 million U.S. adults3 Pratt LA, Brody DJ. Depression in the U.S. household populat
Slide 16: Remission is the Treatment Goal
Remission is the Treatment Goal Treatment in the acute phase (6-12 weeks) should be aimed at inducing remission of the major depressive episode.” – American Psychiatric Association Depression Treatment Guidelines [T]he most robust body of evidence would support continuation or maintenance of pharmac
Slide 17: Historical Outcomes for Approved Antidepressant Studies
Historical Outcomes for Approved Antidepressant Studies 40 consecutive antidepressant studies submitted to FDA in past 20 years Statistically significant improvement was only observed over placebo Only 13% of trials showed statistically significant improvement in remission over placebo Only 30% of t
Slide 18: GeneSight Weighs Combined Influence of Multiple Genes
GeneSight Weighs Combined Influence of Multiple Genes Genotype Analysis (PK/PD) Weighted Genetic Profile Created (>300,000) Pharmacology Integrated Actionable Report FDA Approved Labels Published Literature Clinical Pharma-cology Unique Algorithm Research 18
Slide 19: Largest Double-Blind RCT of Pharmacogenomics in Mental Health
Largest Double-Blind RCT of Pharmacogenomics in Mental Health Compared ~1,200 patients with MDD who have failed one previous medication receiving GeneSight-guided therapy to those receiving treatment-as-usual (TAU) (patient scores were ≥11 on the QIDS-C16 at screening and baseline) Primary evaluatio
Slide 20: GeneSight RCT Study Schema
n = 2,004 Screening Visit (Eligibility Criteria Evaluated) Did not meet I/C criteria n = 606 n = 1,398 Randomized Screening, Randomization & PGx Testing GeneSight RCT Study Schema Study schema and participant enrollment in the peer-protocol cohort Treatment as Usual (TAU) Guided-Care Arm n = 456 Wee
Slide 21: RCT Results Comparing Two Active Treatment Arms
RCT Results Comparing Two Active Treatment Arms p=0.013 p=0.007 Outcome Measures at Week 8 50% improvement in remission n=560 n=607 p=0.107 30% improvement in response 21 14% improvement in symptoms
Slide 22: Symptom Improvement Stratified by Entering Medications
Stratification at baseline Symptom Improvement Stratified by Entering Medications 22
Slide 23: GeneSight Congruent vs Incongruent Treatment
GeneSight Congruent vs Incongruent Treatment Congruent Green- or yellow-bin medications ‘Use as directed’ or ‘use with caution’ test categories YELLOW-BIN GREEN-BIN RED-BIN Incongruent Red-bin medications ‘Use with increased caution and with more frequent monitoring’ test category 23
Slide 24: Change in Incongruence by Study Arm
Change in Incongruence by Study Arm Baseline Week 8 Baseline Week 8 9% relative increase in incongruence 57% relative decrease in incongruence 24
Slide 25: Outcomes for Patients Switching From Incongruent Medications
Outcomes for Patients Switching From Incongruent Medications Baseline Week 8 Baseline Week 8 25 Remission Symptom Improvement Response
Slide 26: GeneSight-Driven Outcomes are Durable
GeneSight-Driven Outcomes are Durable Over 6 months durability Remission doubled during open-label period HAM-D17 Score Percent Improvement 26
Slide 27: Positive ROI with GeneSight
Positive ROI with GeneSight MORE THAN $1,000 Drug Spend Savings1 MORE THAN $1,500 Healthcare Savings2 MORE THAN $3,275 Potential Savings Annually + = + UP TO $775 Productivity Savings2 Payer Employer Winner JG, et al. Curr Med Res Opin 2015; 31(9):1633-43. (Medco) (n=2168; n=10,880 for TAU group; 5-
Slide 28: Evidence Supports Coverage of GeneSight
Evidence Supports Coverage of GeneSight Level 1 evidence1 Improves remission by >50% by guiding medication selecton1 Reducing gene-drug interactions drives overall outcomes1 Efficacy is durable and continues to increase over time1 Greden JF, et al. Publication pending. (Current RCT) Winner JG, et al