• Revenue Growth: 11% increase in 2024 compared to 2023.
• Adjusted Gross Profit: Approximately $589 million in 2024.
• Adjusted EBITDA: $40 million in 2024.
• Adjusted EPS: Positive $0.14 in 2024.
• Liquidity: Approximately $158 million in 2024.
• Hereditary Cancer Testing Revenue: Increased 6% in Q4 2024 compared to last year.
• Prenatal Revenue: Grew 12% in Q4 2024 over the same period last year.
• GeneSight Revenue: Up 14% in Q4 2024.
• Gross Margin: 72% in Q4 2024, improved by 300 basis points over last year.
• Domestic Revenue Growth: 15% in 2024.
• Pharmacogenomics Revenue Growth: 23% in 2024.
• Adjusted Free Cash Flow: Approximately $10 million in Q4 2024.
• 2025 Revenue Guidance: $840 million to $860 million.
• 2025 Gross Margin Guidance: 69.5% to 70.5%.
• 2025 Adjusted OpEx Guidance: $575 million to $595 million.
• 2025 Adjusted EPS Guidance: $0.07 to $0.11.
• 2025 Adjusted Operating Cash Flow Target: $20 million to $30 million.

• Warning! GuruFocus has detected 3 Warning Signs with MYGN.

Release Date: February 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Myriad Genetics Inc (NASDAQ:MYGN) achieved 11% revenue growth in 2024 compared to 2023, driven by volume and revenue per test improvements.
• The company maintained industry-leading margins, achieved profitability, and reported positive adjusted EPS of $0.14.
• Myriad Genetics Inc (NASDAQ:MYGN) announced an exclusive partnership with PATHOMIQ to enhance its oncology products with advanced AI technology.
• The company reported strong demand for its GeneSight test, with revenues up 14% in the fourth quarter.
• Myriad Genetics Inc (NASDAQ:MYGN) has a strong liquidity position with $158 million in total liquidity from cash and cash equivalents and availability under its revolver.

Negative Points

• The company experienced slower-than-expected volume growth in Q4, particularly in its unaffected hereditary cancer business.
• There was a recent decision by UnitedHealthcare not to cover the GeneSight test, posing a reimbursement challenge.
• The integration of EMR workflows is taking longer than expected, affecting volume growth.
• Myriad Genetics Inc (NASDAQ:MYGN) faces a challenging Q1 2025 due to a difficult growth comparison from favorable changes in estimates in Q1 2024.
• The company had to reverse a previously recorded $21 million contingent payment to Ravgen, impacting its future liquidity needs.

Q & A Highlights

Q: On the 25% increase in R&D spend, is this primarily for clinical evidence generation for Precise MRD? Will SG&A decline year-over-year to align with 2025 OpEx guidance? Are you still targeting a 1000 basis point SG&A reduction by 2026 versus 2023? A: Yes, the increase in R&D reflects our investment in clinical studies for FirstGene and Precise MRD. We are managing operating costs to reflect changes, such as the UnitedHealthcare payment changes, with a 25% increase in R&D and an 8% increase in technology spend, while tightening elsewhere for a modest 3% overall increase year-over-year.

Q: With the unaffected hereditary cancer market still around 10% penetrated, can you discuss the progress in this market and the runway for sustained growth? A: We see the unaffected hereditary cancer market as a significant opportunity, especially with our breast cancer risk assessment program. Although switching workflows in this market requires patient education and gathering family history, we are gaining traction and expect future growth, particularly with the 50 million women who could benefit from hereditary cancer testing.

Q: How should we think about revenue phasing for the next year? Is there any seasonality to consider? A: We expect an acceleration in volume growth in the second half of the year, driven by initiatives like EMR integration. Typically, Q2 and Q4 are stronger quarters, while Q3 is lighter due to seasonality.

Q: Regarding Prolaris and the NCCN guideline updates, where is your focus today, and where can you add the most value for growth? A: We are working with KOLs and guideline authors to address confusion and are increasing investments in marketing, medical affairs, and KOL engagement. We are excited about combining AI with Prolaris and offering MyRisk and precise tumor tests, which will drive future growth.

Q: With the exclusive partnership with PATHOMIQ, why is PATHOMIQ the right partner, and what differentiates their AI technology platform? A: PATHOMIQ is focused on prostate cancer, with deep expertise and established relationships in the field. Their AI technology, which starts from H&E staining, complements our offerings and allows us to provide a comprehensive solution for prostate cancer care. We have conducted pilots with PATHOMIQ and are confident in their capabilities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.