Myriad Genetics, Inc. Q2 FY2025 earnings call

• Sam Raha highlighted Q2 results, revenue growth, testing volume trends, and profitability. He discussed the updated strategy focusing on the Cancer Care Continuum with 3 strategic pillars: accelerating growth in the Cancer Care Continuum, growing prenatal health and mental health revenues, and delivering sustained profitable growth.
• Mark Verratti talked about testing volume trends, product segment performance, and the strategy for GeneSight, including driving growth through targeted accounts and revenue cycle improvements.
• Scott Leffler reviewed Q2 financial results, the capital raise from OrbiMed, and updated full-year 2025 guidance, including raised revenue, gross margin, and adjusted EBITDA ranges.

For the second quarter, Myriad Genetics generated revenue of $213 million, a 5% year-over-year increase excluding UnitedHealthcare's GeneSight decision and divested European EndoPredict business. Key segment performances:

• Hereditary cancer testing: Revenue grew 5%, with MyRisk HCT in oncology up 14% year-over-year. Unaffected MyRisk HCT volume started to grow again after addressing customer workflow challenges.
• GeneSight: Volume increased from low single digits to 5% year-over-year growth.
• Prolaris: Volume slightly down year-over-year compared to a strong Q2 2024 but up 6% sequentially from Q1 2025.
• Prenatal products (Prequel, Foresight): Volume declined 7% year-over-year due to order management system issues, but the issue was fixed and improvement expected in Q3.
• Mental Health (GeneSight): Generated $38 million in revenue with 5% year-over-year volume growth.
• Women's Health: Delivered $90 million in revenue, a 4% year-over-year increase.

• Raised full-year 2025 revenue range to $818 million to $828 million.
• Increased gross margin range to between 69.5% and 70%.
• Adjusted OpEx range to between $562 million and $568 million.
• Kept adjusted EPS between a loss of $0.02 and a gain of $0.02.
• Raised adjusted EBITDA to between $27 million and $33 million. No quarterly guidance provided.

• Impact of UnitedHealthcare's coverage policy change on GeneSight revenue.
• Potential material differences between actual results and forward-looking statements due to various factors.
• Risks associated with executing the updated strategy, including competition and market dynamics.

Q: Doug Schenkel asked about strategic review KPIs, divestitures, and differences from previous administrations.

A: Sam Raha stated the update was to show progress, KPIs would be shared soon, divestitures would be reviewed periodically, and differences included stepped-up urgency, rigor, and partnerships.

Q: Puneet Souda inquired about GeneSight coverage, timing, and other payers.

A: Sam Raha and Mark Verratti responded that GeneSight growth was back to mid-single digits, plans to submit publications to United in fall, and positive movement with other payers.

Q: Kyle Boucher asked about mid-to-long-term guidance and portfolio segments.

A: Sam Raha and Scott Leffler explained the guide was based on growth in oncology segments, prenatal, and mental health, with confidence in high single-digit to low double-digit growth.

Q: David Westenberg asked about prenatal volume impact and resolution.

A: Sam Raha and Mark Verratti stated the order management system issue was resolved, expecting prenatal volume to accelerate in the second half.

Q: Bill Bonello asked about oncology strategy and competitive position.

A: Sam Raha responded oncology strategy leveraged hereditary cancer leadership, trust, and access to providers, focusing on specific cancer segments.

Q: Ricki Pearl Levitus asked about SneakPeek ramp and women's health strategic update.

A: Sam Raha discussed SneakPeek challenges and prenatal product launches as new elements in women's health strategy.

Q: Brandon Couillard asked about R&D investment for oncology.

A: Sam Raha stated deliberate management of R&D spend to support oncology strategy, with more details to come.