Myriad Genetics Reports Strong Growth Amid Challenges

Myriad Genetics ((MYGN)) has held its Q4 earnings call. Read on for the main highlights of the call.

Myriad Genetics’ recent earnings call painted a picture of robust financial health, marked by significant revenue growth and strategic alliances. Despite encountering challenges in GeneSight reimbursement and slower volume growth in certain segments, the overall sentiment was positive, highlighting the company’s resilience and strategic foresight.

Record Revenue Growth

Myriad Genetics reported an impressive 11% revenue growth in 2024 compared to the previous year. This growth was attributed to improvements in volume and revenue per test across their portfolio, showcasing the company’s ability to enhance its financial performance consistently.

Exclusive Partnership with PATHOMIQ

The company announced a strategic partnership with PATHOMIQ, which will leverage advanced AI technology to enhance Myriad’s oncology products. This collaboration is expected to significantly improve prostate cancer care, demonstrating Myriad’s commitment to innovation and leadership in the field.

Strong Growth in Key Segments

Myriad’s GeneSight product saw a remarkable 23% increase in revenue year-over-year. Additionally, hereditary cancer testing and prenatal revenue grew by 11% and 17%, respectively, underscoring the company’s strength in these critical areas.

Positive Financial Performance

The financial metrics for 2024 were strong, with the company achieving $589 million in adjusted gross profits, $40 million in adjusted EBITDA, and a positive adjusted EPS of $0.14. These figures highlight Myriad’s solid financial footing and operational efficiency.

Strong Liquidity Position

Myriad Genetics ended 2024 with approximately $158 million in liquidity, providing a solid foundation for future investments and strategic initiatives.

GeneSight Reimbursement Challenges

Despite the overall positive performance, Myriad faced challenges with GeneSight reimbursement, as UnitedHealthcare decided not to cover this category of tests. This poses a potential hurdle for the company in maintaining its growth trajectory in this segment.

Slower Volume Growth in Q4

The fourth quarter saw slower-than-expected volume growth, particularly in the hereditary cancer business. This was attributed to the focus on launching Prequel at 8 weeks gestational age and longer-than-anticipated EMR workflow conversions.

Impact of NCCN Guideline Changes

Changes to the NCCN guidelines for prostate cancer created confusion, affecting the positioning of Myriad’s Prolaris test. This highlights the challenges of adapting to evolving industry standards and guidelines.

Forward-Looking Guidance

Looking ahead, Myriad Genetics aims for double-digit revenue growth, driven by new product launches and strategic partnerships. CEO Paul Diaz emphasized the focus on profitable growth and innovation in advanced diagnostics, supported by a strong Net Promoter Score of 72. The company is poised to accelerate growth in 2026 and beyond, leveraging strategic initiatives and partnerships.

In conclusion, Myriad Genetics’ earnings call reflected a strong financial performance and strategic direction, despite facing some challenges. The company’s commitment to innovation, strategic partnerships, and robust financial health positions it well for future growth, making it an attractive prospect for investors and stakeholders alike.