Myriad Genetics Q2 2025: Unraveling Contradictions in Strategic Focus, GeneSight Performance, and Oncology Growth

Strategic focus and divestiture intentions, GeneSight performance and United's policy change, GeneSight financial position and payer policy changes, oncology strategy and market positioning, oncology growth and strategic focus are the key contradictions discussed in Myriad Genetics’ latest 2025Q2 earnings call.



Revenue Growth and Strategic Focus:
- Myriad Genetics reported revenue of $213 million for Q2 2025, representing a 5% year-over-year increase when excluding specific factors.
- Growth in average revenue per test was up 2% year-over-year, driven by strong execution on pricing improvement operational plans and increased growth in hereditary cancer testing across most tests.
- The company's strategic focus on the Cancer Care Continuum and its three strategic pillars is expected to drive accelerated growth in high-growth market segments.

Testing Volume and Market Expansion:
- MyRisk HCT in oncology saw volume growth of 14% year-over-year, and GeneSight volume increased from low single digits to 5% year-over-year.
- The growth in GeneSight was driven by the organization settling in after deliberate cost savings and targeting specific accounts, while MyRisk HCT's growth in the affected population was supported by improvements in EMR functionality.
- The company plans to expand its testing portfolio in other attractive cancer segments to increase market share.

Impairment Charge and Financial Position:
- Myriad recognized an impairment charge of $317 million due to a significant drop in market capitalization, which is a non-cash item excluded from non-GAAP EPS.
- The charge is attributed to higher assumptions about cost of capital and does not reflect a deterioration in expectations but rather primarily influences the carrying value of intangible assets.
- Despite this charge, the company maintains strong operating discipline and expects to fund future growth with stable gross margins and disciplined resource allocation.

Capital Raise and Liquidity:
- Myriad secured a $200 million term loan from OrbiMed, enhancing liquidity and financing flexibility.
- The loan supports the company's growth journey and provides liquidity for strategic investments in the Cancer Care Continuum.
- The facility offers a blended interest rate of approximately 7%, considering both drawn and undrawn committed capital, which represents a significant upgrade from the previous ABL facility.