Myriad Genetics (MYGN) 7 Nov 24 2024 Q3 Earnings call transcript

In the third quarter of 2024, Myriad Genetics presented a robust financial performance, marking an 11% revenue growth compared to the previous year. The company's strategic focus on profitable growth was evident, with an increase in gross profits to approximately $150 million and adjusted EBITDA of $14 million. Despite the challenges posed by a policy change from UnitedHealthcare, the company remains optimistic about its future outlook.

Key Themes and Trends

Myriad Genetics showcased a strong financial performance in the third quarter of 2024, with an 11% revenue growth compared to the previous year. This growth was driven by both volume and revenue per test improvements across the portfolio. The company's commitment to profitable growth is evident with the generation of approximately $150 million in gross profits, $14 million of adjusted EBITDA, and positive adjusted EPS of $0.06. Despite the challenges posed by a return to typical seasonal ordering patterns and storms in the Southeast, the company's teams delivered a strong third quarter. With positive momentum and a strong pickup in volumes over the last four weeks, the company is tightening its 2024 revenue range target around the midpoint of $840 million, and increasing its 2024 adjusted EPS target to between $0.12 and $0.14.

Market Position and Competition

Myriad Genetics is actively engaging with UnitedHealthcare regarding the importance of maintaining access to its GeneSight test for patients struggling with medication management challenges associated with depression, anxiety, and ADHD. The company believes that the existing body of clinical evidence supports the clinical validity and utility of the GeneSight test, and is surprised by United's policy update. However, the company remains optimistic about its position in the market and is confident in the value proposition of its GeneSight test. With approximately 3 million tests to date, GeneSight is viewed as an important tool for primary care providers to help reduce the costly and potentially harmful trial and error when working with patients to get them on the right medications.

Financial Outlook and Guidance

Myriad Genetics provided an updated financial outlook for the rest of 2024, tightening its revenue range target around the midpoint of $840 million and increasing its adjusted EPS target to between $0.12 and $0.14. Despite the challenges posed by the UnitedHealthcare policy change, the company remains confident in its ability to mitigate the impact and continue to grow. The company's focus on profitable growth, investments in technology, and a strong pipeline of new products position it well for future success.

Conclusion

Myriad Genetics' third quarter earnings call revealed a strong financial performance, with a focus on profitable growth and a clear vision for the future. Despite the challenges posed by the UnitedHealthcare policy change, the company remains optimistic about its position in the market and its ability to mitigate the impact. With a strong pipeline of new products and a commitment to investing in technology, Myriad Genetics is well positioned for future success.