MYGN - Earnings call transcript Q1 2024

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Operator

Thank you for standing by, and welcome to Myriad Genetics First Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to Matt Scalo. Please go ahead.

Matthew Scalo

Thanks, Latif, and good afternoon, and welcome to the Myriad Genetics First Quarter 2024 Earnings Call.

During the call, we will review the financial results we released today, and afterwards, we will host a question-and-answer session.

was found afternoon investor.myriad.com. on release and Form earnings be can our quarterly issued on this X-K Our website at

section Matt Raha, today President the Vice Scott Leffler, and Scalo, Relations. Financial Officer; Operating I'm on This Officer; and Officer; Chief and And Sam Mark in of Chief at heard of investor.myriad.com, a live Executive call this will be website, slide Chief Paul the Verratti, our are Investor me our our Investors call Chief with along via can Commercial Diaz, archived recording our President with Officer. be presentation. Senior webcast

Please files its the on note identify in XX-K, Exchange from forward-looking company's variety our Form on from the Securities X-K differ Form reports These factors and materially document based events expectations on future projections risk regarding contained annual events may contains that cause or could and these Form results for that actual to report its in differ or a and to with Commission, management's XX-Q current specifically the reports the results We current important documents the you statements today are company the expectations reasons. performance some those the statements. company. the presented future actual on quarterly to time and time other materially or the statements to information or from refer forward-looking financial of adversely of of projections

will Paul. now over turn to I call the

Paul Diaz

update discuss thank revenue quarter strong highlights make to today's afternoon, us. we Good performance, on will On growth. continue progress first and profitable everyone, to joining our for the accelerating Matt. Thanks, provide an you of call,

and their helping of my more to to thanks and vision accessible medicine advancing to continued make people mission our Myriad partners control their take teammates, want and health. testing precision precision commitment I and to support provider our First, more

quarter. of talk X about Slide the to our to turn Now highlights

our reflecting commitment quarter we portfolio. achieved on year, revenue the ASP deliver to growth volume to improvements the as both and double-digit continue We last first in growth to shareholders compared across

focus in about Our adjusted reported basis quarter. near-term growth close EBITDA, an the We're EPS into the we as are XXXX ongoing across to on strategic first positive breakeven execution adjusted enterprise. of driving excited and and profitable that the on priorities growth our efficiency we're continues

a we've validation upcoming our early in addressing health, than time. clinical data abstracts wins integrations. We Precise Tumor related as well Mark well I and posters reorganization oncology international Sam detail clinical updates will dislocation standing product on as long and investments Precise priorities and that with the launches integrated seeing women's data these important in as call has currently for our strategic market Liquid, are and In studies Large ASCO go other continue will transformation speak seen [indiscernible] we talk more to journey reinforce of EMR to This to our on on been and our of we review. will oncology accelerate in and a both operations we continue deficit. more to and publications, a XXXX, recent validation have provide offering as morning, and part as progress to being with We

slide, Next please.

to X for as survey drive customer areas aligned back profitability we and shareholders. of provider Every I to interaction we spectrum. the customer our with us point will are things and long-term growth, have directly only and every do innovation provide strategic Our pillars focus believe

with needs. the menu most customers well that tests last that Our have as their testing clinical meets strong as the utility want and validity comprehensive partner

affordable turnaround on staff. are for want their burdens tests Our unnecessary They place time also customers tested that care fast and about their not patients.

which needs, I customer strategic next X on will address the discuss Our slide. pillars

Top heavily compliant validated invested that lab clinically settings. technology and or science quality management real-world operations, We've through use innovation with we tier FDA requirements. clinical are labs cost genetics in are effective that consistent [indiscernible] products automated, deliver and scalable and

activities customers compliance to with Myriad in easier ourselves serve our provider business cycle at it patient MRD of management delivery, these and cross-regulatory the to scale investment integrations, to new revenue our platforms team continues we ongoing testing pillars expertise and and position by our find Our order our do universal in make results portal. with Finding a product. new and supported management,

to reorganization continuing Next our biopharma domestic the partners announced the to European to serve Myriad resources company align patients States. slide, our key please. opportunity outside of better while operations, United

the of business, signed definitive Scientific. reorganization sell part agreement EndoPredict an to Myriad As our

continue produce to in of will an to United part States sell College the solutions. right of the EndoPredict LDT Precise as and We license as

call been would businesses important year. does more remains effectively out this agreement. and supporting also We This will [indiscernible] for and profitable sell licensing rationale to our through better strategic not effort more an partnerships third or partners quarter The strategic of of market Polaris position other includes continued future Myriad. in the for affect second license to U.S. this kits while also is global allows also Myriad to is accelerate right efficient. to Japan, distribution expected biopharma the diagnostic outside our towards Transaction us growth including I close which has part

transactions Liquid Last portfolio. to [indiscernible]. is new XXXX. Precise which earnings Tumor the progress. to or Salt very Lake cash accretive will labs transactions the Together, the are from acquisition and update quarter, associated and and making steady optimize in expected the represent we to of facility, provide flow capital-efficient on ways announced these be Oncology integration These Sam an in

rule will of comments regarding regulation close on tests. FDA's with I the final

raised the requirements. Myriad. concerns many of is device industry generally the in the positive we view regarding final the clinical While of do tests all for York of by share of we oversight, the use industry New as this our framework and state rule

We Myriad proactive cover detail be with well this call. in continue products in regulatory look team our as FDA compliant of on as assurance plan a quality to of quality working ensure history strong that more FDA requirements. a will the have new Sam long We tenants. later a to with

Now I'll to Scott. over turn it

Mark Verratti

I will teams. about Slide X Paul. our begin to commercial Thanks, on talk

invest identify better and their analytics enable continue that We could benefit to clinicians and in territories to Myriad segment portfolio. teams commercial tools that our from testing

we on team XX% growth. ASP positive teams have trend commercial part in use and more shift revenue aligns first detail. the the growth results of as about to realignment these our commercial of We revenue focus better reducing positive focus from team's the the our reflect half seen that new the sales our and targets these believe to and the force from second sustainable In Overall, analytic incentives with and ongoing XXXX, in drive commercial the tools of our in in company's incentives, volume-based which commercial realigned continue talk targets. revenue-based on tools cycle revenue We management, Scott our the analytical quarter, will investment goals

Most for importantly, continued momentum position efforts positive XXXX. throughout well us these

counselors commercial of year, dislocation. better combination the the messaging, X% slide. growth with lead grew team cancer driving a area, doing year-over-year. Myriad our to home in consistent testing We this differentiated the along with volumes hereditary up quarter, to job reputation differentiated continues compared In early our Next improving leader a with competitive this revenue genetic cancer last with reflects first insights XX% by test. believe hereditary our as offered relationships

EMR to most of clinical we with integration the hereditary are drive forward, the validation all investment opportunity to and and test dislocation excited differentiated about growth Myriad's the clinically address cancer the continue omnichannel we studies to market. in in recent, Looking businesses, across our our market with recent accelerate most

Next slide.

no part than potential upside mentioned, hereditary of more cancer has As customer. our portfolio our

women the for unaffected United hereditary States estimated XX are testing. million the for cancer that guidelines in there Just an population, meet

identify We are mentioned those use good previously serve better to tools analytical of as and making patients. the

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Next slide.

expand differentiator only polygenic score this access any to the ways Here is to RiskScore ancestries how risk benefits is score care component for to the best at all risk myRisk is we risk people. examples for X equity its increasing focus all for to women genetic our access testing cancer myRisk, score demographic. for of of testing. to of myRisk expands with for only the commitment validated of an Myriad, that and we of act. on are of Not people major going example a expanding genetic in is breast

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XX to prenatal will first share now business. to Slide ASPs. XX% our to initiatives turn reflecting X% and improve last volumes In talk compared year, revenue I our and ongoing market increased quarter, the gains increased prenatal about and

to volume the by Our business. for providers commitment dislocation support to this continues negatively affected drive market

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we the tests in In year-over-year quarter, both reflecting increased XX% XXX,XXX management quarte slide. in activities. first the first quarter-over-quarter approximately improved and cycle ASPs revenue year-over-year GeneSight Next as revenue QX. reported improved

and I the of context end want expansions anticipated guideline Plus guidelines. would the also well as with remind we would Slide for These expanded expanded Foresight I of test expanded FirstGene, launch, as efficient XX ACOG our This investors new launch test, year. pipeline panel in share Universal on multiple upcoming cost-effective our test will to and screening to which feature products. hope later an support our this more workflows. prescreening carrier

with both We these into adapt towards Tumor Liquid recent to addition from to labs. our making the oncology are progress integrating offering the and acquisition. we of Precise continue Sam speak will our tests new Precise

We Japan sensitive to use Last strides the we are the tremendous with of in test. Hospital National PRECISE Cancer our collaboration highly quarter, MRD MRD. in the research precise Center making announced East

in HRD, look more well our registry ACO germline ASCO research MRD other across as by orders, included as abstracts this and tumor-informed to forward accepted genome risk X areas We approach at to speaking year sequencing. whole studies on of polygenic Myriad's

Officer, call the turn Operating Raha. will I to over our Chief Now Sam

Samraat Raha

Mark. Thanks,

Let in of program. to regulatory me time high-quality our continue A other labs. requirements operational while of the meet provide to excellence shortening Lab results quick patient overall to which delivering XX turnaround update continue of differentiate start testing an objective innovation that our ongoing Future this is us support experience, scale all improve the reminder drive and on of to Slide focus program at provider that and from of

San As in our recall, you Francisco in of XXXX. Salt lab may completed and City new we construction South Lake

Clea and Francisco. a completing State New this inspections, the in South of Salt by year includes York Lake Highlights from passing and clinical in QX state City San California of

also and Francisco the San MRD Precise the We assay assay year first South of up our in City. completed validation and NITS workflow Prequel, Salt of completed bringing Lake

Francisco of San move the South validation workflow full-scale end for complete lab operations the plan in, to and by XXXX. Our remains

the we the on oncology sample Lake end as well Salt of City completing by move-in remain XXXX. at running by QX new lab, assays process processing the XXXX focused most scale and as validation those for our of our the of end of assays and For

into acquired We in Salt Lake are Liquid of our new Tumor, process City test Precise integrating facility. also the recently Precise

on now that about more the talk next me slide. Let

You that lab may overall Tumor recall tests portfolio. which, assays, are workflows select and Mountain Oncology that Liquid including and Precise selection these therapy of together, we X part Precision completed last instrumentation, are the in assets Precise our Genomics profiling Solutions acquisition of for Precise genomic our quarter,

has Our to on with our immediate City contributing been facility. as associated we acquisition providers as retaining well for testing these the Lake focus operations new employees Salt as move

have our City team already turnaround under within oversight. I'm happy to new we instrumentation has members great moving to direct and time share engagement that quarter. been transition planning lab the started Lake Salt and our that our advanced We've from seen reduced some

expect for as to Precise We Lake operational samples in the and start this Liquid. it. processing processing to expect our of in by in completed fully end of entirely also Salt to Tumor reporting City sample And the QX lab year move have on Precise work be we Lake we XXXX, advanced Salt

Building what a new guidance. shared oversight preliminary the lab-developed good to the the work the LDTs. Next released version believe Paul this favorable comments finalized is view is rule We last Myriad than final the week, that its Paul's position our rule in on of please. current that tests more to slide, Adding regarding or of framework. FDA earlier, within

CAP, State Health or tests First by approved a York And the our the clinical additional all without rule requirements. New New LDTs the path analytical validation Department continued to York of FDA. of State all, for serve again, requiring of market provides through meet on-market CLIA a

process a quality management strong for on. samples system, collaborating meaningful of regulatory organization on submissions, a the experience including a affairs report patient CDx CDx. we and tests, We've also which X over regulatory maintained FDA have the we FDA-approved is robust of all BRACAnalysis the assurance, decade Second, the with that quality foundational and built we element

sufficiency optimistic clinical we are and for aware review rule, State. by LDTs and York also data validation approved the FDA the are of about LDTs intends could we review While the with FDA's to new that associates are that analytical New

have FDA can teams increased personal business and experience oversight rule the for I've the I a FDA. regulated with competitive differentiator joining LDT a since closely to Finally, for Myriad, we and And as been prepare by running plan working use that is Myriad. our how

highlights with from first an to update to select Turning like the quarter. next on slide. I'd end the operational

company, organizational to reflected of We single-digit employee have are level proud a high in a engagement across level. turnover the

investments health or care the with up important XXXX, Promoter continue the in to few the Genetics penetration, among improve providers most market for focus of This first has years. and year to the constituents. a in from terms In Net full past of a testament our Their Myriad satisfaction provider led quarter, over XX% NPS XX to that continued we make patient the is experience. to figure Score

commercial execution planning XX.X% and sales efficiency optimization. productivity to his including and of and of team are of by a continued terms result our the compared commercial leading, we process last In improved productivity, that transformation increased the quarter as quarter, Mark this

turn CFO. to With it our Scott? over me that, Leffler, Scott let

Scott Leffler

Slide Thanks, needs I'll by with team delivered a internal and experience addressing the initiatives led XX. This our more XX% revenue as was performance year-over-year. growth. such commentary by and revenue care mainly execution in as improving a hereditary by strong health cancer and prenatal driven growth start generating enhanced commercial. to commercial on provided Mark to are tools customer testing, how overall testing We and continued an effectively analytical speaks pharmacogenomics growth QX, provider

important in progress activity, first the up cycle period. ongoing resetting of QX these ASP be quarter of to and drivers year deductibles to revenue adjustments our over soft due ASPs improvement, ago believe in other were of Historically, year. the tend addition in X% We to each management beginning

as the year. off strong bodes we are such rest performance starting well that of So the for fact XXXX the ASP with

event. September Next slide. we the XXXX of On XX, investor Slide at cycle our discussed initiatives some revisit revenue

progress quarter including period reflects immaterial $X recently up adjustments. from made have payer as benefit EMR Myriad improving to of We number our has average automating revenue process ramping average approximately coverage population payer seen as of well and payers million expanded coverage. a single risk expanding billing other a these coverage from prior multiple expand integration, of of First favorability on fronts,

reduce with long-term progress We to volume new pay this the are pleased continued goal the our our business. rate, against complementing potential of generating

Moving performance to to want Slide quarter. the XX. I financial highlight our by

associated February of last improved still to being with overcoming IPG adjusted were basis quarter XX margin in and gross acquired and XX.X% the Lab year, are integrated. assets. this and compared of Precise First Liquid year Tumor which points

adjusted from quarter but OpEx decreased XXXX sequentially increased fourth $XXX XXXX quarter by of First of X% million year-over-year. the

reflected profitability, run drove as in $X.XX the first we an growth a in EBITDA full Our well $X the ramp full XXXX year of to in $XX adjusted of rate QX spending versus of OpEx to in expect a prior improvement positive and significant QX $X.XX to as our loss and up accommodate XXXX year only overall period. quarter a loss of our As of than loss year guidance, growth million revenue EPS adjusted higher in including margins compared amount be as the we strategic million strong

flexibility facility. availability under Slide and QX approximately with in million marketable have position a finished XX. equivalents on solid million in $XXX our We $XX investments Regarding cash, financial and credit cash of

The a to cash is first high typically due burn effect. quarter seasonal

meaningful outflow first an $X XXXX for million a flow outflow the quarter of an However, the of adjusted million year-over-year in first versus of with only $XX we improvement quarter of approximately cash saw operating in XXXX.

for the positive is remainder operating cash expected adjusted be of to Importantly, flow XXXX.

XX%. revenue and $XXX representing million, full financial we growth XX, and reiterate our guidance between Slide million for between X% annual XXXX year $XXX On

well range, integration also Our and spend landscape accelerated wins guidance exceed revenue would I be numbers, strong increase are that areas there that EMR opportunities Mark positions example to to customer our top upon. we XX.X%, IT spend at industry often but we to ability breakeven or and the with X% optimistic comfortable meet remain drive between An gross line $X.XX. to above are adjusted between where the note adjusted further actionable regarding and our us We touched Overall, of changing dependent growth operating XX.X% ability a rate are company's to to X% where competitive accelerate business of commercial us. performance and grow that would and our EPS will new the trends or requirements and margin of with the meet year full on expense

Now call back let the me Paul. to turn

Paul Diaz

Thanks, Scott.

the of of and We in this quarter continue and on long-term our pillars to the delivered profitability strong first that results build growth XXXX year.

differentiated enable settings, early products in technology, deliver decisions clinical better value detection supported clinically their and and by providers real-world and treatment patients. for Our

where are and investments Our advanced times commercial are yielding costs. turnaround and automation reduced modernized in improved faster examples labs, operating workflows, engine technology

All trusted research scalable health. underpinned of this reinforcing commercial business the lab, our specialized data, with position by and strong, expertise, and margins industry-leading differentiated as technology a quality,

to vision, and take energize to more enterprise testing genetic helping provide shared around our who the of prevent will continue health their and We people and disease. better they treat accessible, precision control us more medicine

over back questions. now I'd Matt it like for to your turn to

Matthew Scalo

Thanks Paul.

Investor guidance results reminder today's found non-GAAP in website. of financial Relations of in and non-GAAP our As to to The the earnings use the call, release can non-GAAP be under financial financial section GAAP our measures. we a certain GAAP reconciliation

Instructions] portion we're participation. the ready call. our to are now Q&A [Operator session to Now the ready for ensure begin of Q&A broad we

Operator

Sachs. of first Matt question our from Sykes the of Instructions] line comes [Operator And Goldman

Matthew Sykes

in talk market Congrats just you cancer little bit Paul gains on a for prenatal. hereditary the that the Maybe maybe both Mark, share and about quarter. see future runway or

some easier time them. winning assume keep sticky those you comments at beginning, new get see that of to some so know long? post them made to that over just that. the then You color it of building? I'd it's how the and you're relationships want probably that would how I love relationships, kind sort get to runway you just where around And if

Paul Diaz

particularly mean they things Yes, to certainly right and things a now, take care about, kind very changes. revisiting absolutely while But X we're for use, large stickier. Mark system And you differentiated they I that other first, of really accounts, what's I X be in from people that Matt. I seeing the changes hospital choices. or elaborate would think, institutions ease come without an earlier, world competitors focused of of we're hard their and that as the other that's is EMR and that where the it's tell a once early room it's I we're happened really institutions these here in. these Well, And this, on say said with are us clinically phase make care products. relationships, these make know the get to I matter. that of will point large now, you're disruptions will

said, genomic of on system Now is being we're excited. list not X that #X, But the or the a priorities. X, pretty testing hospital

'XX. though, that opportunity don't hope certainly the a us expectation until I back through But that 'XX. of you be, won't half -- into momentum going should see you fully sign of a really to to the why take what is Mark, in give lot come the big business think year I But think could we

Unknown Executive

Yes, question, for the I Matt. would and agree thanks with that,

over not think I here. speak Paul to

benefit at are the best-in-class. think perceived the we I table. as Myriad is, is

other are dislocation, And of the These priorities. we got so there I think they've table. is lots though at providers, even

that it's myRisk comments, as of of half really think and back the suits going during my we the all a we for well for and Paul really the to to take XXXX. so And mentioned the for year quarters But are business EMR I couple as it making, us us integration as with into going and of investments accelerate. mentioned

Matthew Sykes

economically in from my volume, a right incentives again as target that the you, market this sure in change salespeople Perhaps, customers? maybe in to revenue this on in might related change customers just to Mark, then salespeople given focus help And dislocation, And your there's change follow-up, And does incentive? the reception I'm customers? for be question. commercial Great. what that incentive for team from your this the it just of attracting right commercial does been the not has number viable? the team a

Mark Verratti

sure in that us through the we're as an is increased to provider the right? their isn't spot that's specific ASP. are you focus we're those team And Matt, any teams this that of It pull to payer sure not guidelines, space, think patient of making make our time attention. that focus. has when or Yes, I any making on, that just can, think it allows changes, excluding it that we -- particular understanding in allows particular comments, provider. But from and our have sure around much to of a just revenue that really even what type making knows Scott's focus we management, coverage point collecting just as the that sure at order, the absolutely ordering, provider all information of just something the cycle was didn't be able Matt, really efforts I to making what

company So and their aligned. I in you the obviously, it's how wasting the with the from the them. get That's force been way XXX% where how for going agree time paid. acceptance field, going not to the in time best benefit about that focusing right, also that would areas they're definitely they're they certainly say to they aren't that's compensated, spend not but I would That's get -- sales they has there. And

Paul Diaz

point teams get volume a of They perfectly up this. maybe is And of that revenue. points X talked to about understand now mean I we're to what worth or I've X sales giving

I aligned We as the because are revenue they management online And in different said, our just Mark change that much now. sales stuff. much cycle again, national started think with are quarter and you initiative. inflection very And better and at now seeing meetings that and the

far back we embrace not really We us got as have help changes. them pushed because

you'll year So I that and net benefit it play of the over accelerate out think the see course

Operator

Our next question line the Wolfe with Doug of Schenkel Research comes from

Douglas Schenkel

an few now firm, high-level months be what's where in offense learnings it's to of teams. your evaluating starting been essentially evaluating want are Scott you the joined with of your worth? since start and to update of and roles I better, what's get It leadership curious would to you think company. kind kind your play the a essentially Sam, firm? one. the -- at in early interesting where process Essentially, you the new you just a on I'm in are what

Scott Leffler

then done. seen off itself hand over I'll start be all, more and also at can work of going terms that of to of of also broader from results to here, we Sure. have our the everything much not investment joined the lot much that you think QX see the great in forward. much so to effort very but First is feel for and opportunity to I've thrilled question. privileged company already I We Myriad, but fruits I about accelerate very as in the the great it's learned of also And a the in ability us both has, overall thanks but and so could us. for at special market it inflection in that and front it to company of point be just but of momentum a that in the where see terms front and now us with

And any the business is product last in that it so that a been how forward. I've the extraordinary if months of has the had learning also there momentum [indiscernible] is company, X bit

Paul Diaz

team vantage of put tell any coming Yes. from companies I'll our I on with Doug. you of Scott. for a aware that Thanks, some par point question, concur them. have you're said, that I you I what Scott. larger the with would other Thanks of. And

Mark Verratti

the first, execution body Paul mentioning, location understanding It the was is on, to results. a results, deliver focus operational as timely science, but

from now different from taken as transformation be all -- think fronts what our of just I is many yet not that the Scott journey. lot and time, things great are of think years. phase obvious this last executed course, And the also of of company a And joining I X outside, organization. coming -- level on that. this next those seen it's return one there's to this I so I for exactly the needed of has really it's And on

opportunity, taking of healthy level. have the to We an a next us part

regrets. So I exactly no do not This what have is only I want

Paul Diaz

Dr. And Doug, side. business. has an an Reed systems, that George last I'd oncologist of months he mean, such physician, add only couple health the an Equipment had I on Health oncology addition incredible been our impact and just just over Dr. Dallas

and things, So little of other strategic great. of the different guys some is been X and stuff. a happening the quarter They're we company build these saw And bills, with at that bit just many the have lots do freeing to lots team of this levels. us

I couldn't be . our more new pleased So partnership. with

Unknown Analyst

That's to fantastic. in one just try an I'll unrelated sneak on And front. maybe more

I final the shared your you Regarding what prepared LDT in rule, remarks. appreciate

For it's forward, you a this things by you entry may how develop of assays, even out was as guys Myriad. this Does to barriers be I and this this to Again, turned how kind you a advantage for others. take to think a to about pretty increases if market, how recognizing And in. you change competitively. go your potentially large big my worth, look agree. for as going years few And I'm wondering we whatever just about you take position to as phase consolidator. think anything boost think is this

I'd to you comments thoughts love on this? on where So my initial or with disagree get any agree

Paul Diaz

very add. I difficult to I agree, going subscale for that think be Yes, operators. this is I'll Doug. start I mean, can and

investments have We system not It for to this We to for have years, our play. in can frankly. and we've an develop last in both with quality was It the that now made was those began just lucky future. stuff We strategy. to products coming. to our products, this was was full automation the plans last quite a in It management modifications over be quality a systems existing management estate leveraged knowledge real future decade our feel been preparing the existing products. that and

I team products and at. product operators markets going single they're we've working up think the of on And the lot rules system, capital whether folks it's with together talk the this to together pressure you So going health is That's management this, others. be to holding respect Sam's our of a one doing that is a clearly, bit and can a great coming little competitive job put taken one. or these through about of every we a the advantage. lab going think to with been

Unknown Analyst

not Yes. Doug. we and systems, over talk turnaround that but the with sure really I right? there, concur your build to and only market through have for the saying again, that about management Paul about that need every have that diligently it test Paul there, very what to been the over some to have is myself are and said. doing the product accessible. preparing things mean make We critical to tests single everything quality eye there but relevant, question, time the preparing stands answers audience while elements, the is Mark all and what mean we on an are approach all quality I I launch most that we with is those labeling the to going meet need all we're What right, just But on the thing, we talked done? studies be important heard

gross these So how to I outsourcing requirements the think I is XX% don't get new know to are same this operations lab it consistently, do be meet that going their time. margins to and all folks

for I a quite challenge think So be yourself. it will

Operator

which Brennan next Dan the of TD Cowen. comes line from of Our question

Daniel Brennan

on had to a quarter. one, year. obviously, Congrats you start Maybe strong a really first the solid

full You guide. maintained the year

didn't -- speak most to I you out was there just about, of think maybe the benefits, were prior period talked like beat in think, so million called organic. all you You I But sound could $X -- prudence. it

is continue? of not wondering why there now? kind right strength raise prevent this to that you Just seeing the from anything So would

Paul Diaz

but the just We hopefully We're we or rest here. point. year. the one year, putting just really the see particularly on didn't get year, note strong certainly can as through agree, that to And we we front of this on to other that, the side at It's build run a guidance the ASP exceed of our the ahead go through start

Matthew Sykes

on side, the maybe the line. And oncology really our but health it. forecast hereditary more Got side, strong, was then in cancer women's beat

that size given from share the more have? you're the that how ahead And initiatives you you dislocation share the there's could lot gains much more still that that gains ongoing of seeing was elaborate benefit of kind the the bit some one a presumably, on of from bankrupt. business, versus a Just

it color quarter a saw just teasing you on more little in what this of what's assumed So forward? kind kind of out and guidance the going

Mark Verratti

And just and ongoing it is out our was tackling. that Yes, Mark. called Dan, blocking it we most this in think I of QX,

and winning always you're back I think forth. share

mentioned expect, half incremental So that any we the would in as back the happen year. of would gains we earlier,

Operator

of of question Puneet the next Partners. . line Souda Our from comes Leerink

Puneet Souda

I clarify the clarify that to there then follow-up. you have anything business, the guide, And if wondering, a was have point. EndoPredict just know the I reiterated to I guide? want just European that but And wanted for just in

Paul Diaz

I would guide. the incorporating the No, both are of strategic of Yes. that we say sort transactions, within

become 'XX. portfolio And and so to way being Tumor the European Precise a little sheet. in the additions both our serving we and pretty cash with cash transactions are the able for much within of market side flow accretive that Liquid, Precise and the it's earnings And in very profitability These operations 'XX reorganized whether to guidance extensively. and revenue reposition on our to were more on the put the capital-efficient back efficient more and and balance

that are bolt-ons stuff terms -- market at opportunities, keep But going philosophy of want picking there'll are saying kind in choosing strategic be to acquisitions excited So and think and forward. we different we more this really these we or our the that we are and of doing

Puneet Souda

it. Got

portfolio of you market into you that I either focus and of pursue, diagnostics? just where how sort right other of might when trimming of, sort through further and is expansion you the state options Paul, think potential of given mean, the in up you expansion, about said, then the us now portfolio management walk sort at that Liquid MRD you Okay. also therapy on have optimization following on done just look the that, Precise And as strategic or

Paul Diaz

and patient, Yes. comes second, like always and MRG, we're these benefit over for Liquid floor. certainly to somatic cetera, tools treat going hereditary breast new what need When third, et I key cancer novel push questions technology are ask interesting first, up a precision patients, to cancer you the and physicians, cancer

think couple So where years, EMR And of we're you with patients an just in to those to progression going one a reports. key in very excited we're can the tools treat place have get primary of place consolidated next over and the sudden, monitor differentiator and thought to others of seems interesting. got be together be trying I are a string of this, I everybody who was a bounce all is kind that What cancer a thing. to it big from going here, dead

the referred that we our focusing the where we and readouts That So to -- more kind in be we're in more are and we we And watching years. client stay definitely marketplace more position. innovation. have think the to fits studies portfolio going certainly on building for the That's going we're a we have a portfolio. on where have on innovation pretty that to place had channels the in disciplined we'll we've studies We're investing that great being within we like indications investing But to of ACOG as playing an with call. catch-up,

Operator

line of question Our of Raymond Cooper James. Andrew from the next comes

Andrew Cooper

should European excited the the the takeaways same fear you a bit for just transaction. circling opportunity that little we the kind the to before. OUS sort just it, in way worry from question. first the of opportunity don't we're be? about . and on more efforts thinking really what U.S. need what Thanks about just really be the us Like of on on Can should with here have our our sticking the of give Maybe decision? maybe wagons takeaway and that Is hey,

Paul Diaz

be is of a in Yes. Europe has great both growth, labs go to were country worth the process, I business. kits. complicated they a live, would [indiscernible] everywhere single operating and that's say of is going their requirement. expense for through that accountability certain satellite your the wasn't [indiscernible] Every thesis killer do to regulatory they and They're when that's is the where generally the complexity at We

have LDT where in Japan, to continue so and be we through have very arrangements Lake And efficient. to to serve to operations, us expand our growing to And very continue distribution we profitable a for resources, yes, business. Salt in

investing EMR on So see where Europe is returns longer investing new the and term opportunity this much process. complicated higher in business bringing we market a more consolidated through in studies, has in a

was that really the what went into So

Unknown Analyst

the kind have? to efforts the ramp that how year, you bit. love different give through but base bit, some dynamics some then growth the of little OpEx that a shifting of we the across versus about of also you're of little that growing we think I the new us Okay. shared product a then maybe sort That's breakout is you ASP Would should little to maintaining portfolio. And in a you new think helpful. maybe just trying P&L the much bit of flavor? of the And if drive can and of know about true areas a on just of

Paul Diaz

let on support investment. dollars in to we than gains to Scott IT, OpEx, know it's productivity R&D, try get the and one the across second have the take returns repatriate commercial, studies center I'll all quick the take to very and we We're to trying to first one. continuing whether where clinical

So we the just X% this X% expect model really over you're and to is I'll that we that exactly growth. this the everybody, operating and gone within to done to quarter, stay couple were of because last of remind for. we've we've starting again leverage years, see

the all. to a growth wages percentage of so areas it, maintain spend, X% growth push manage may to And we X% are in we and R&D the that But OpEx, but X%. range the in that is we higher and while X% call cost -- tech within to other that, XX% XX% that, in can we the X% really within that

that year investments team beyond our I X% in ramp the over job how this range X% by actually that's that. big about to the up some So just see No and in would beating the the a first quarter. of think terms course budget great of starting year in you'll OpEx,

that studies and little the we ahead bit we're of each launches getting the rendering. you a will invest quarter So ramp as see

Unknown Analyst

Yes.

I'll a XXXX for expect. ASP. just last XXXX, a question remind little talk fact take typically our would you the it -- actually with on was than I'll looking bit that that back little we first about And call, that earning ASP So worse on your you performance the bit overall on can

what you mix the an have And the felt the already less into a think an initiatives talked ways, of say number, is that product we better And than In an year, ASP. is we're lost individual and that something last a about. -- the hope the high product year ability to we ASP. really that is so from some that's organic would so what we X% than from really you is along board various across that it was believe little performance in where some at when year. improvement a contribution perform Board for with far this certificate see almost so because I blended ASP the was impacting improvement level the is success incremental we've given have improvement But but individual of product to . even on extraordinary saw we would of continue been typically in number that sustainable opportunity bit the much that us recover outsized they to build based going coming that if in games. there you on the that or here just play level, really, that certainly more forward. And I initiatives And it's greater look across we seeing

Operator

Our comes JPMorgan. the Rachel Vanda of question of next from line

Rachel Vatnsdal Olson

into dig Last quarter, provided bottom. to you in top wanted for XX guidance just I and XQ first, So seasonality expectations. month

could for XQ along well. lines as do something wondering I you So was with if

revenues million highlighted from some product you LDT the you in are So segments how of performing comfortable moving share? are $X.XX first pieces $XXX And the some that of to loss today, dynamics, per reaching about XQ? with and of how around thinking roughly at and competitive given then launches of up, various Street the the you

Unknown Executive

was a and that fast. So lot

not QX QX did we're giving guidance. and give we first, So not guidance,

year. our individual everything for terms would nothing are folks that where of us since a directionally, terms our last think Street us. There's there's of just success. for to in seeing of on. get encourage is I pretty else here. to QX and us trouble Again, have parts QX lot that it to Scott be in of ahead in with on tailwinds for not a the we're typically continues the future grow that continue the assets estimates going story place of I quarter And good the on building is a continuing in QX volume. to we But products, a the moving stronger said, ASP QX,

Mark quite So frankly, it market year, going later will that does bode as gains, strong happen next big well very strong probably share said, year, later even this year, without into momentum 'XX.

Rachel Vatnsdal Olson

if Great. upside were you ACOG would And expansion to it. year that later around guideline see my follow-up be on mentioned then this ACOG, just we

embedded when assumption a at And we point. from see guess, on to I latest your market share minute this I then what's I talk could about just for wanted an into XQ. not guidance ACOG? it's appreciate So regarding update

more have an focused more that more on in out I XXQ comes One there and of has of strategy profitability to side guys peers your it of the of type testing. when know you opt-out strategy. have

opt-out? between shift you So do expand inclusion? opt-in out eventually see guidelines, guideline see when we perspective should share that that How that ACOG market or playing a positive from and given

Paul Diaz

the prebook,quite the in frankly, Yes. We everything power XXQ, which just differentiated was study quite the else showed market, frankly. released from and on

genes The just Plus both so share absolutely to line, the share will should what to adoption profitable those Universal and that's keep right. we guidelines is just we're well continue growth that another think we win included improve here. continue underscoring ASP. us to as win that will and this we you're quarter, we broaden that as of And That's a to focused want going everybody give if that's profitable. delivered of for happen, will what that deliver. And and is they think reason But I include ACOG on, to XXQ thing Foresight we're lack expect. in expansion The costive

think and that products a We overall. that that, that and is see eye -- to we not we payment, it your until running launch I off just which in grappling is goes make having not discipline through are management efficiently. tax holding is and not guidelines to just that of the we selling the are finally out don't for your also on launching want product that sure studies getting have is we're that the we So kind and having your product, with lab on industry it an thing paid your going and

the guidelines kind as there tailwind year. be up XXQ so be product bring But they spoke summer, great have a we're of we And next to in management. going all the great of are balance If to would that's to to for adopted trying to expansion if we're also and in us just that this later into context.

Operator

the of line next from of Our comes Guggenheim Nambi question Subu Securities.

Subhalaxmi Nambi

of market. share have Got gaining without compromising you clearly it. capturing On business in And made reproductive how health, a you on of [indiscernible] couple market? progress larger going the the players have exited model are but forward share, the in

Paul Diaz

particularly didn't really not come if clearly. through you I I'm followed, sure

please? how the just the profitably. gaining could was think I share we I'm question, are restate question sorry, you

Subhalaxmi Nambi

hear guys now? you me Can

Paul Diaz

It's a little maybe just But yes, little louder. better. a

Subhalaxmi Nambi

Okay.

compromising the market, margin given margin market model without those exited that capturing of players focus of making model So given business are how the business larger clearly those health, on margins? share. you are gaining reproductive But share on in a really progress couple tend have you and the exited to of exited the

Paul Diaz

Yes.

customers. We trying for good be So to absolutely are there question.

payer. said, good are mean margins we that that that on patient. we do bringing But with As we see that making on doesn't sure We effectively. Mark business don't are focused it can see we not

think our saw seen quarters. more I X what and grow X profitability, ability to in the and grow over you years last last is you've So the

on business to but and maintaining and margins to we on XX%. near will not XX% on progresses profitable So committed That mix little And a fluctuate other XX%. that it factors, sometimes is bit as that from those in about here, depending stayed do could but to gross growth, quarter-to-quarter, think business cash but business, bring that to flow. generates bringing absolutely is year win profitable just probably the better we've

look XX flow do, to And do disciplined ultimately, at I you days and businesses to billings and got you think at cash. look and conversion into that's our what If our need we're to DSOs, we've trying cash convert here.

Subhalaxmi Nambi

helpful. updates half launch any is for the MRT, enrollment And commercial on data, how still planning one are one in progressing? clinical last me. the back year? Super And of On you next

Paul Diaz

Yes.

this So there'll for then be be are in July, Anderson ASCO. addition, told. in R&D late some I on have a And an we fall, at pharma readout additional And will to study samples running studies we get summer. expecting

QX, everything progressing So with to study, the talk I the QX, a more about have making progress will lot we but think is we're there.

get we're expecting have another shortly. to here patent We issued

labs running they're some investing so far, that So while through more we we But studies. understanding to for were is the well. we making Sensitivity progress, -- we sale wish are going be in is really additional my high.

Our really be this with partners are in our with said results, we'll about at what of pleased terms partners including as the and are talking MD Anderson. they seeing ASCO, at more

Operator

Stephen from the line comes Mason next Our question of Inc. of

Jacob Krahenbuhl

about increase of on I strong a drivers But oncology your big have could on of tests keep segment launching this so This to it multiple within traction offering the to a realized Jacob It's within maybe one here. be Liquid seen your this just covered, sort number bit for MRD in have you're maybe early will portfolio seeing after Precise in acquiring or Congrats But is Mason. opportunity. the talk year. start you you Intermountain? yet? the I'll an and docs been

Paul Diaz

still I here. mean that I day early think this it's Yes.

are the integrated make later not happen will the our this just 'XX. and The seen but of year push once not integrated of in of it's we into terms a the fully do a And that XXX% Precise slight sure control year. And great we've doing see this and now driver deal. and be first thing Intermountain we P&L. numbers Tumor it. growing to envisioned But we there. Sam going really It's to the team was job overall increase, for a real

the So not just allocated of sort it's P&L. of part the

a about and sets precise of hereditary you'll with So is push that tumor. terms to liquid what coming contribute. starting next year I see for think is big a But preparing really the And cancer our that of team in out ASCO, stage oncology MRD.

So stay tuned.

we'll particularly other say have of at indications at a this we'll tools be portfolio oncologists Medicine lot well. we've oncologists pretty patients, in ASCO. terms breast that's for reviewed think I that in together about excited as for how ASCO the preparation. about but of terms We're what Precision highlighting for feedback cancer And to as gotten comes from

Operator

Our line Michael next of the question coming from

Unknown Analyst

ASP your Mike. are provide This guide be you models, upside? improving the can exceptionally had plans to blue is in what's wanted an John what on terms next for than ask what you've I in and so any better and did GeneSight, for our states well. great coverage, And Could like of you? versus volume, update on

Paul Diaz

and large terms myRisk again, it's gaining And more Advantage -- hereditary industry again, individual momentum terms working We're biomarker to an was blocking traction it's 'XX. other just you're out that throughout from not think, on coverage cancer, other all places amping Medicare $X It's of CMS, on a effort improving billion and now with plan continue. have fully to those other tough states, talking Scott GeneSight also states lift year in and and requirements right through of been It's just -- last along certain call working said, But a our that perspective, the $X we across-the-board the across a coverage seeing things. Scott of a And even in now. in about covering. Scott turnaround some had with we year as we're year, changes but we results the as seeking and with said, that billion don't ASP wins, Blues where really where office nice piece really yet. of said, probably Also and up want even just tackling it's of are And participants. will we places. and with the in different plan there. respect as leveraged we a and couple into products been we're haven't of for that didn't build year ASP's coding going We'll number

Unknown Analyst

for I thoughts tumor profiling, -- on and there? how to flip Understood. then ask the the any on side, volume could on any And thoughts you. the Got ASP going the if go is

Paul Diaz

The partners. tumor really profiling in a we of year a Yes. QX was impacted couple win because biopharma with big last had of

myChoice last So by driven risk. it a been really the that that business year it big with revenue partners. The skews that XX% little was has But is average changed fact we because the X win biopharma QX negative performance. overall, the had a X of that or down biopharma being was in very lumpy.

falls we something excited sometimes about and We always clear. on. paid. really that QX it impacted in get we're really but business, in so partnering falls So and we're building not are of up good prospects not QX, still sometimes really business, always Sam that's really -- it the It's

Operator

now conference would turn Paul like closing back the for remarks. Sir? Diaz to I to

Paul Diaz

turning me today. Thank everyone for you, up everybody. Thanks,

of had So work. I spending lab. pleased few teammates was We start again, a rally. difficult the actually just issues team through really we're thank time the We year. the I at It to And today think the should call starting guys us to grow the you quarter. the expect hard expect my of see, to appreciate all beginning had progresses. on today. just I and want just Scott as the the their at And a all for the said, work Myriad call operating Genetics. I really that and us hope process are of And your more participating can you from Appreciate you again, here you as you in of at starting to support. year

So thank you all.

Operator

today's you conference call. participating. Thank for concludes This

You may Goodbye. now disconnect.

Myriad Genetics (MYGN) 7 May 242024 Q1 Earnings call transcript