On August 6, 2024, Myriad Genetics Inc (MYGN, Financial) released its 8-K filing for the second quarter of 2024, showcasing significant revenue growth and improved financial guidance. Myriad Genetics is a molecular diagnostics company that provides testing services designed to assess an individual's risk of developing a disease. The firm produces MyRisk, a 48-gene panel with the capability to identify the elevated risk of developing 11 types of cancer, among other diagnostic products.
Performance Overview
Myriad Genetics Inc (MYGN, Financial) reported a 15% year-over-year increase in revenue, reaching $212 million for Q2 2024, surpassing the analyst estimate of $204.95 million. This growth was driven by strong performances in Prenatal (25%), Pharmacogenomics (22%), and Hereditary Cancer (19%) segments. However, the company reported a GAAP earnings per share (EPS) of $(0.41), which, although an improvement from $(1.42) in Q2 2023, fell short of the analyst estimate of $(0.24). Adjusted EPS improved to $0.05 from $(0.08) in the same period last year.
Financial Achievements and Challenges
Myriad Genetics Inc (MYGN, Financial) raised its full-year 2024 financial guidance, projecting revenue between $835 million and $845 million, reflecting an annual growth rate of 11% to 12%. The company also increased its adjusted EPS guidance to a range of $0.08 to $0.12. This optimistic outlook is supported by a 17% year-over-year increase in gross profit to $147.1 million and positive cash flow from operations of $2.6 million.
Despite these achievements, the company faces challenges, including a 10% year-over-year decline in Tumor Profiling revenue due to a challenging biopharma environment and slow ramp-up of biopharma contracts. Operating expenses also increased by 6% year-over-year to $183.6 million, driven by investments in technology, product development, and R&D.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Revenue | $212 million | $183.5 million | 15% |
| Gross Margin | 69.6% | 68.5% | 1.1% |
| Operating Expenses | $183.6 million | $173.2 million | 6% |
| Net Loss | $(36.7) million | $(116.1) million | 68.4% |
| Adjusted EPS | $0.05 | $(0.08) | N/A |
Segment Performance
The Women's Health segment delivered revenue of $86.3 million, with hereditary cancer testing revenue growing 31% year-over-year. Prenatal testing revenue increased by 25%, reflecting market share gains and expanded coverage by payers. The Oncology segment reported revenue of $82.2 million, with hereditary cancer testing revenue growing 11% year-over-year. However, Tumor Profiling revenue decreased by 10% year-over-year due to a challenging biopharma environment.
Commentary and Future Outlook
“We are very proud to have delivered another quarter of strong double-digit year-over-year revenue growth in the second quarter of 2024. Our year-to-date 2024 revenue growth of 13% year-over-year, following our 11% year-over-year revenue growth in calendar year 2023, and our 15% year-over-year revenue growth in the second quarter 2024, demonstrate the sustainability of our organic growth and gives us the confidence to raise our long-term revenue growth target to 12%,” said Paul J. Diaz, President and CEO of Myriad Genetics.
Myriad Genetics Inc (MYGN, Financial) continues to invest in innovation and expand its product portfolio, with recent launches such as the Universal Plus Panel for Foresight® Carrier Screen. The company also announced collaborations with GSK and QIAGEN to improve access to diagnostic testing and develop new test kits.
Overall, Myriad Genetics Inc (MYGN, Financial) has demonstrated strong revenue growth and improved financial performance, despite facing challenges in certain segments. The company's raised financial guidance and ongoing investments in innovation position it well for future growth in the genetic testing and precision medicine industry.
Explore the complete 8-K earnings release (here) from Myriad Genetics Inc for further details.
