Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Myriad Genetics Inc (MYGN, Financial) achieved 11% revenue growth in the third quarter compared to last year, reflecting both volume and revenue per test improvements across the portfolio.
- The company generated approximately $150 million in gross profits and $14 million of adjusted EBITDA, with a positive adjusted EPS of $0.06.
- Myriad Genetics Inc (MYGN) maintains a strong liquidity position with approximately $149 million in liquidity.
- The company reported a 34% year-over-year increase in GeneSight revenues, with volume growth of 10% and improved revenue per test.
- Myriad Genetics Inc (MYGN) continues to see positive momentum with its Precise Tumor test and has launched Foresight Universal Plus, potentially expanding market opportunities.
Negative Points
- UnitedHealthcare updated its medical policy restricting access to multigene panel PGx testing, which could impact Myriad Genetics Inc (MYGN)'s GeneSight revenue.
- GeneSight revenue associated with UnitedHealthcare's commercial business was approximately $40 million for the 12-month period ending third quarter of 2024, posing a potential risk if the policy change is implemented.
- The hereditary cancer testing growth was partially impacted by slower growth of the BRACAnalysis CDx business in the US and internationally.
- Typical seasonal softness in July and August affected volume growth in the third quarter.
- The company faces ongoing challenges in reducing no-pay rates and improving payer coverage across its product portfolio.
Q & A Highlights
Q: Can you clarify the impact of UnitedHealthcare's policy change on GeneSight revenue and margins?
A: Paul De'ath, CEO, explained that UnitedHealthcare's commercial policies account for approximately $40 million of GeneSight revenue. The gross margin for GeneSight is around 75% to 80%. The company is working to mitigate the impact and expects to grow the remaining business at a double-digit pace despite the policy change.
Q: How does Myriad Genetics plan to address the UnitedHealthcare policy change regarding GeneSight?
A: Paul De'ath, CEO, stated that they are engaging with UnitedHealthcare to provide additional data and clarify the clinical utility of GeneSight. They hope to influence the policy change by highlighting the test's benefits and differentiating it from other pharmacogenomic tests.
Q: What is the company's strategy for dealing with payer pressure and potential policy changes?
A: Paul De'ath, CEO, mentioned that while there is pressure across the healthcare ecosystem, Myriad Genetics is focused on improving the value proposition of its tests and building clinical evidence to support their utility. They are also working on reducing no-pay rates and expanding payer coverage.
Q: How is Myriad Genetics positioned to gain market share in the hereditary cancer testing space following recent industry disruptions?
A: Mark Variety, Chief Commercial Officer, noted that Myriad is well-positioned to gain share due to its reputation as a leading provider of hereditary cancer tests. The company is focusing on expanding its MyRisk test and leveraging EMR integrations to enhance customer experience and drive growth.
Q: What are the growth prospects for Myriad Genetics' women's health and prenatal testing segments?
A: Paul De'ath, CEO, highlighted the significant opportunities in the women's health space, particularly with the expansion of guidelines and the launch of new products like Foresight Universal Plus. The company is also focusing on integrating its MyRisk test with riskScore into the women's health channel to drive growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
