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Myriad Genetics Quarterly Revenues Decline 21 Percent

NEW YORK – Myriad Genetics said on Tuesday after the close of the market that its revenues for the three months ended Dec. 31, 2020 declined 21 percent year over year.

Total revenues for the period were $154.6 million, down from $195.1 million. It beat the consensus Wall Street estimate of $150.4 million.

The Salt Lake City-based firm is in the process of changing its financial year to match the calendar year. It previously ended its fiscal year on June 30, but even with the change to match the calendar year, the company didn't report full-year financial results.

Despite the year-over-year decline in quarterly revenues, on a call with analysts company executives focused on Myriad's financial recovery and highlighted that revenues for the three months increased 6 percent sequentially. "This quarter we continued to see sequential improvement in test volumes and revenue trends, while executing on our strategic transformation plan to simplify our business, improve customer experience, build new tech-enabled commercial capabilities, and focus on our biggest growth opportunities," Myriad CEO Paul Diaz said in a statement, noting that the company is on the path to resetting its base operations, reducing costs, and divesting certain business units.

Total molecular diagnostics revenues were down 21 percent year over year to $143.9 million from $181.1 million a year ago, while pharmaceutical and clinical services revenues declined 24 percent to $10.7 million from $14 million.

Myriad's hereditary cancer testing revenues were $78.7 million during the quarter, down 33 percent from $117.7 million in the prior year. Prenatal testing was $21.1 million, up 29 percent year over year from $16.4 million. The pharmacogenetics test, GeneSight, brought in $18 million in revenues, a 20 percent drop compared to $22.5 million. The Vectra DA rheumatoid arthritis tests booked revenues of $8.9 million, down 14 percent from $10.3 million. The prostate cancer test, Prolaris, contributed $8.4 million, a 24 percent increase from $6.8 million.

Meanwhile, MyChoice CDx recorded $5.4 million in revenues, a 17 percent increase from $4.6 million the prior year. The breast cancer recurrence test EndoPredict contributed $3.1 million, up 24 percent from $2.5 million a year ago. Other revenues were flat year over year at $300,000.

The women's health division, which includes revenues from the myRisk Hereditary Cancer, the Foresight carrier screening, and Prequel noninvasive prenatal screening tests, recorded $56.3 million in revenues during the quarter, a 33 percent year-over-year decline. The oncology segment, which includes myRisk, Prolaris, BRACAnalysis CDx, and EndoPredict had revenues of $60.4 million, down 6 percent year over year.

The firm said that total test volumes for the quarter were 224,000, down 5 percent year over year but up 7 percent sequentially.

On a call with analysts and investors, Myriad CFO Bryan Riggsbee highlighted the sequential volume growth of several tests, including a 7 percent volume increase for GeneSight, 16 percent growth in Prolaris test volumes, and a 6 percent growth in hereditary cancer test volume.

However, year over year, hereditary cancer test volumes declined 23 percent and average selling price decline by 13 percent. Test revenues in this segment were impacted by changes in "payor reserve," Riggsbee said.

Myriad executives highlighted during the call that the company recently signed a contract with most of the commercial plans affiliated with Anthem Blue Cross Blue Shield, which returns all of its tests to in-network status, including hereditary cancer testing. Diaz said that this might not impact revenues much this fiscal year, but it will ease test access for patients and providers and reduce non-payment rates for all its tests.

Myriad posted a net loss of $44.2 million, or $.59 per share, for the quarter compared to a loss of $8.3 million, or $.11 per share, a year ago. Non-GAAP loss per share was $.12 and in line with the consensus Wall Street estimate.

Its R&D costs contracted 3 percent to $18.2 million from $18.8 million, while its SG&A costs were down 1 percent to $132.9 million from $134.3 million.

The company ended the quarter with $117 million in cash and cash equivalents and $33.7 million in marketable investment securities.

Due to continued uncertainty because of the COVID-19 pandemic, Myriad said it will not provide financial guidance for the current quarter ending March 31 or for Fiscal Year 2021.