MYRIAD GENETICS INC Q1 FY2025 earnings call

• Sam Raha discussed the challenging first quarter, updated financial guidance, and progress on the new product pipeline, including the upcoming launch of a combined carrier screening and NIPS assay, PRECISE MRD clinical data presentation, and AI-enabled Prolaris launch.
• Mark Verratti detailed segment performance, EMR integration challenges affecting unaffected hereditary cancer testing volume, and Polaris performance, noting no meaningful headwinds from NCCN guideline confusion.
• Scott Leffler recapped Q1 financial results, discussed profitability, cash flow, and updated 2025 guidance, including revised revenue, gross margin, and OpEx ranges.

First quarter total revenue was $196 million, a 3% year-over-year decline. Excluding the UnitedHealthcare impact on GeneSight, the EndoPredict divestiture, and a retroactive coverage benefit in Q1 2024, total Q1 revenue grew 5% year-over-year. Strength in prenatal oncology MIRISC tests was offset by softness in GeneSight unaffected hereditary cancer test volume. ForeSight and Prequel had 10% year-over-year volume growth. myRisk test for cancer patients had 11% year-over-year volume growth. GeneSight test volume grew 2% year-over-year, impacted by UnitedHealthcare policy changes. Women's health business had $87 million revenue, a 4% increase year-over-year, with prenatal testing growth but unaffected hereditary cancer testing weakness. Pharmacogenomics (GeneSight) revenue was $31 million, down 20% year-over-year due to UnitedHealthcare coverage policy change.

• For full year 2025, annual revenue is expected to be $807 million to $823 million, gross margin range 68.5% to 69.5%, adjusted OpEx between $555 million and $565 million, adjusted EPS between a loss of $0.02 and a gain of $0.02, and adjusted EBITDA between $19 million and $27 million.
• Projected modest sequential revenue increases throughout 2025.

• Impact of UnitedHealthcare policy changes on GeneSight test volume and revenue.
• Challenges with EMR integrations affecting the ramp of unaffected hereditary cancer testing volume.
• Uncertainty around payer coverage and market conditions impacting various product segments' performance.

Q: Doug Schenkel from Wolfe Research asked about simplifying the company's narrative and the GeneSight headwind.

A: Sam Raha said it would take several months to simplify, with focus on oncology. Scott Leffler explained the $10 million GeneSight headwind in Q1 related to United's coverage change.

Q: Puneet Souda from Leerink Partners asked about GeneSight payer coverage and provider behavior.

A: Scott Leffler said no other payers have stepped away, Mark Verratti said no meaningful provider behavior change. Sam Raha discussed portfolio review and divestiture consideration.

Q: David Westenberg from Piper Sandler asked about EMR integration impact on unaffected hereditary cancer testing.

A: Mark Verratti detailed EMR workflow challenges and integration efforts, Scott Leffler noted no deterioration in underlying rate environment.

Q: Sung Ji Nam from Scotiabank asked about Polaris and Pathomiq partnership.

A: Mark Verratti discussed NCCN guideline misperceptions and Pathomiq partnership resonance.

Q: Andrew Cooper from Raymond James asked about GeneSight sales force reprioritization and guidance reduction.

A: Scott Leffler explained GeneSight volume impact and $35 million revenue guide reduction reason.

Q: Tycho Peterson from Jefferies asked about liquidity and LRP.

A: Scott Leffler discussed liquidity and Sam Raha talked about LRP refinement through strategy refresh.

Q: Lu Li from UBS asked about hereditary cancer EMR integration timeline.

A: Sam Raha and Mark Verratti discussed EMR integration progress and ongoing efforts.

Q: Unidentified Analyst from Guggenheim Securities asked about women's health ASP and ACOG guidelines.

A: Scott Leffler and Sam Raha discussed women's health ASP growth and ACOG guidelines anticipation.