Myriad Genetics, Inc. · NASDAQ:MYGN
Myriad Genetics — Q1 2024 Earnings Presentation
34 slides from Myriad Genetics's earnings presentation, May 7, 2024
Slide 1: First Quarter 2024 Earnings Call
M A Y 7 , 2 0 2 4 First Quarter 2024 Earnings Call ©2024 Myriad Genetics, Inc. ©2024 Myriad Genetics, Inc.
Slide 2: Forward-looking statements and Non-GAAP financial measures
Forward-looking statements and Non-GAAP financial measures Some of the FORWARD-LOOKING STATEMENTS AND DISCLAIMERS information presented These statements are based on management’s current expectations and the actual events or results may differ materially and adversely from these expectations. We ref
Slide 3: Revealing the power of genetic science – for everyone
Revealing the power of genetic science – for everyone Mission We advance health and well-being for all, empowering every individual by revealing the answers inside each of us. Vision As a leader in genetic testing and precision medicine, we provide insights that help people take control of their hea
Slide 4: First quarter 2024 operating and financial highlights
First quarter 2024 operating and financial highlights Achieved Double Digit Revenue Growth; Average Expected New Products in Selling Price (ASP) Increasing Profitability On-Going Execution of Near- 2025 Support Long-Term Improvements Momentum Term Strategic Priorities Growth Early wins (both Prenata
Slide 5: Strategic areas of focus anchored in customer requirements
Strategic areas of focus anchored in customer requirements Top 5 test provider requirements 4 strategic pillars Healthcare Providers (ranked by importance) 100% Test has strongest clinical validity and utility Test is easiest 80 Lab has most Test has fastest for me to comprehensive process/lowest 5
Slide 6: Pillars of long-term growth and profitability
Pillars of long-term growth and profitability Science and innovation Top-tier science delivering products Elevated customer experience that are clinically validated and demonstrate proven utility (quality, and commercial execution access and cost) in real world Strong digitally enabled clinical sett
Slide 7: On-going optimization of our Oncology portfolio
Positioning to lead in On-going optimization of our Oncology portfolio Oncology while streamlining operations Acquisition of Intermountain Precision Genomics lab completed Feb 2024 • Acquired Precise Tumor and Liquid assay and associated lab operations to support the launch of Precise MRD • Expanded
Slide 8: Mark Verratti, Chief Commercial Officer
Mark Verratti Chief Commercial Officer ©2024 Myriad Genetics, Inc. 8
Slide 9: Analytics, incentives and RCM support Q1 '24 revenue growth (and ASPs)
Analytics, incentives and RCM support Q1 ‘24 revenue growth (and ASPs) Highlights Total revenue Hereditary CancerHereditary Revenue Cancer Advanced analytics have enabled: Figures in millions • Better segmentation of markets across Oncology, Women’s Health, Pharmacogenomics 12% $100 16% • More effic
Slide 10: Significant opportunity to accelerate MyRisk growth
Significant opportunity to accelerate MyRisk growth across Women’s Health, Imaging, Oncology and Urology Hereditary cancer test volume Roadmap of expected Figures in thousands highlights 2024 MyRisk patient portal +14% Q1’24 LTM Volume Growth (YOY) MyRisk Medical Management Tool Enhancements 75 Risk
Slide 11: MyRisk addresses the needs of large and growing markets
MyRisk addresses the needs of large and growing markets Unaffected Market – Hereditary Screening Affected Market – Germline Screening Actionable market Market Market MYGN Actionable market Market Market MYGN size (US only) penetration growth market share size (US only) penetration growth market shar
Slide 12: Myriad's Breast Cancer Risk Assessment Program
Myriad’s Breast Cancer Risk Assessment Program MyRisk with RiskScore® a clinically differentiated Hereditary Cancer Test More than 50% of unaffected patients* tested with MyRisk® with RiskScore ® will qualify for a change to their medical management. “All women in the U.S. should have equal access t
Slide 13: Celebrity Cancer Diagnosis Journey Elevates the Importance of Genetic Testing
Celebrity Cancer Diagnosis Journey Elevates the Importance of Genetic Testing Nationally Actress Olivia Munn is sharing her recent breast cancer diagnosis journey with national audiences to elevate the importance of understanding lifetime breast cancer risk. Through a media partnership, MyRisk® test
Slide 14: Prenatal market growing with potential tailwinds from guideline expansion
A market that continues to grow with potential tailwinds from guideline expansion Actionable market Market Market MYGN Prenatal test volume excl. SneakPeek size (US only)* penetration* growth** market share* +15% Figures in thousands PREQUEL Low single Low-to-mid ~$1.3B 45-55% digits teens Q1’24 LTM
Slide 15: Strong commercial execution driving significant volume growth
Strong commercial execution driving significant volume growth in the last twelve months Actionable market size (US only)* Market penetration* Market growth** MYGN market share* GeneSight test volume +19% Figures in thousands ~$5B 15% Mid teens 55-60% 135 Q1’24 LTM Volume Growth (YOY) 125 Roadmap of
Slide 16: Active expansion of high-quality testing pipeline
Active expansion of high-quality testing pipeline, addressing real-world community needs Women’s Health Oncology FirstGene Foresight Precise Tumor Precise Liquid Precise MRD Multiple prenatal screening Expanded carrier screen Robust tumor profiling Robust tumor profiling Molecular residual & therapy
Slide 17: Sam Raha, Chief Operating Officer
Sam Raha Chief Operating Officer ©2024 Myriad Genetics, Inc. 17
Slide 18: Advancing the Labs of the Future program
Advancing the Labs of the Future program Objective To drive innovation and operational excellence at scale to deliver high quality results with shortened Advanced R&D 65k Incubate / advance new technologies square feet turnaround times and lower COGs Q1 ‘24 Highlights Walter Gilbert Innovation Cente
Slide 19: Intermountain Precision Genomics: On track with integration
Intermountain Precision Genomics On track with integration Q1 Q2 Q3 Q4 Deal announced • Employee retention • Continue lab move • Complete lab move January 18th • Testing continuity • Systems integration • Monitor & improve and improvement and validation sample processing Deal closed February 1st • L
Slide 20: Positioned to Succeed in an Increasingly Regulated Environment
Positioned to Succeed in an Increasingly Regulated Environment Myriad Genetics Initial Perspective on FDA Ruling on LDT Oversight Well-positioned to meet FDA requirements • Portfolio of molecular diagnostics tests meets CAP, CLIA and NY State requirements • Strong Quality Assurance and Regulatory Af
Slide 21: First Quarter 2024 Operational highlights fueling our growth
First Quarter 2024 Operational highlights fueling our growth Market Perception and Team Engagement Customer Service Levels Efficiency & Productivity Revenue Cycle 74 < 6.0 days ASP +2% Net Promoter Score among Rapid turn-around times critical YOY increase (Q1 ’24 vs. Q1 ‘23) current Myriad providers
Slide 22: Scott Leffler, Chief Financial Officer
Scott Leffler Chief Financial Officer ©2024 Myriad Genetics, Inc. 22
Slide 23: Hereditary cancer test, Prenatal and GeneSight revenue drive performance
Hereditary cancer test, Prenatal and GeneSight revenue drive performance in Q1 ‘24 Select test revenue and growth rates All figures in millions, except growth rates Hereditary Cancer Prenatal Pharmacogenomics $100 16% $100 22% $100 21% $90 $90 $90 Hereditary cancer $80 $80 $80 testing highlights: $7
Slide 24: Focused efforts designed to drive near-term improvement in no-pay rate
Focused efforts designed to drive near-term improvement in no-pay rate Focus on the ground game Process improvements Augment the pre-auth team Payor compliance to current guidelines Revenue cycle operations Hire and add robotic processing (RPA) State biomarker laws leading to Accelerate large-scale
Slide 25: 2023 and Q1 '24 financial progression by quarter
2023 and Q1 ‘24 financial progression by quarter All figures in millions, except per share amounts and percentages Total revenue Adjusted Gross Margin* Adjusted Operating Expense* Adjusted EPS* 12% 72% 4% 0.04 70.4% YOY First Quarter 2024 YOY First Quarter 2024 70.1% 144.5 $0.00 69.0% 69.0% $145 202
Slide 26: Positive adjusted EBITDA in Q1 '24 and solid financial flexibility
Positive adjusted EBITDA in Q1 ’24 and solid financial flexibility $ in millions Total cash, cash equivalents and marketable investment securities at end of first quarter of 2024 $104.3 Amount available to draw under the asset-based credit facility* 41.3 Estimated total available cash and cash equiv
Slide 27: Reiterate 2024 financial guidance
Reiterate 2024 financial guidance All figures in millions, except per share amounts and percentages EXPECTED 2024 FINANCIAL GUIDANCE YEAR-OVER-YEAR CHANGE Total revenue $820 - $840 9% - 11% Gross margin % 69.5% - 70.5% 50 – 150 bps Adjusted operating $572 - $582 5% - 7% expenses* Adjusted EBITDA* $2
Slide 28: Well positioned to take advantage of future market opportunities
Well positioned to take advantage of future market opportunities Annual revenue growth expected Reiterate 2024 full-year revenue guidance of $820 - $840 million to accelerate to 10%+ in ‘24–‘26 reflecting expected annual growth of 9-11% over 2023 Right to win with core products Enhanced commercial e
Slide 29: Q&A
Q&A ©2024 Myriad Genetics, Inc. 29
Slide 30: Appendix
Appendix ©2024 Myriad Genetics, Inc. 47
Slide 31: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures for the Three Months ended March 31, 2024 and 2023 (unaudited data in millions, except percentages) ©2024 Myriad Genetics, Inc. 48
Slide 32: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures for the Three Months ended March 31, 2024 and 2023 (unaudited data in millions, except per share amounts) ©2024 Myriad Genetics, Inc. 49
Slide 33: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures for the Three Months ended March 31, 2024 and 2023 (unaudited data in millions, except per share amounts) ©2024 Myriad Genetics, Inc. 50
Slide 34: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures for the Three Months ended March 31, 2024 and 2023 Following is a description of the adjustments made to GAAP financial measures: • Acquisition – amortization of intangible assets – represents recurring amortization charges resulting from the acq