NEW YORK – Myriad Genetics reported after the close of market Monday year-over-year revenue growth of 7 percent for the fourth quarter of 2024 and 11 percent for the full year.
The Salt Lake City-based genetic testing company also announced that it has appointed Sam Raha, the company's current chief operating officer, as CEO, replacing current CEO Paul Diaz.
For the three months ending Dec. 31, Myriad reported $210.6 million in revenues compared to $196.6 million for the same quarter in 2023, driven by 4 percent year-over-year growth in test volumes. The top-line result just beat analysts' average estimate of approximately $210 million.
The company's Q4 hereditary cancer testing revenues rose 6 percent year over year to $94.3 million from $88.9 million. Tumor profiling test revenue fell 4 percent to $30.8 million from $32.1 million in the same quarter last year. Prenatal test sales rose 12 percent to $44.9 million versus $40 million a year ago, and the firm's pharmacogenomics test revenue was up 14 percent to $40.6 million from $35.6 million.
Myriad's Q4 net loss was $42.5 million, or $.47 per share, compared to a loss of $31.2 million, or $.36 per share, in Q4 of last year. On an adjusted basis, the company posted earnings per share of $.03, besting analysts' average estimate of a $.03 loss per share.
Myriad's R&D spending rose 41 percent to $29.7 million from $21 million in the same quarter last year, while its SG&A expenses fell 5 percent to $138.5 million from $145.4 million a year ago.
In a conference call with investors, Diaz said his departure was a "personal decision," explaining that he received an offer to join private equity firm Cressey & Company as a managing partner and adding that Raha "has done an exceptional job here." Diaz will continue to serve the company as a consultant to Raha and the board of directors for another year. In addition, Myriad said that current Chief Commercial Officer Mark Verratti will be promoted to COO concurrent with Raha's appointment.
Also on the call, Diaz sought to assuage concerns about the company's potential exposure to Medicaid cuts by the Trump administration. Diaz noted that in the event of potential changes to Medicaid, prenatal testing faces the greatest exposure, but noted that state legislatures, which have historically been reluctant to tamper with reimbursement in this area, are likely to provide a measure of insulation.
"When we look at distribution in terms of Medicare, commercial, and Medicaid, and where in our products the Medicaid revenue falls, we don't think that we have a lot of exposure to Medicaid block grants or to other changes in Medicaid reimbursement," Diaz said.
Diaz also downplayed concerns about the potential effects of broader market disruption, stating that at this time, Myriad has "no intention" of changing its current investment strategies.
For full-year 2024, Myriad reported $837.6 million in revenues, up 11 percent from $753.2 million in 2023 and marking the second consecutive year of double-digit revenue growth.
Full-year hereditary cancer testing revenues rose 11 percent to $364.5 million from $327.8 million, while tumor profiling test revenues fell 7 percent to $125.8 million from $135.6 million in 2023. Prenatal test sales rose 17 percent in 2024 to $177.1 million from $151.3 million a year ago, and pharmacogenomics test revenues were up 23 percent to $170.2 million from $138.5 million.
The company's full-year R&D spending rose 28 percent to $113.4 million from $88.7 million in 2023, while its SG&A expenses fell 2 percent to $560 million from $572.9 million.
The company more than halved its full-year net loss to $127.3 million, or $1.41 per share, from $263.3 million, or $3.18 per share in 2023. On an adjusted basis, Myriad reported full-year EPS of $.14.
Myriad ended the quarter with $102.4 million in cash and cash equivalents.
The company said it anticipates full-year 2025 revenue of $840 million to $860 million, reflecting annual growth of 9 percent to 11 percent, excluding the potential impact from a Q4 change in UnitedHealthcare's pharmacogenomics medical policy and divested businesses.
First quarter revenue is expected to be between $196 million and $204 million, while the company expects a Q1 loss per share of $.04 to $.08.
Myriad said that it continues to pursue a resolution with UnitedHealthcare that allows for its commercial and managed Medicaid enrollees to have continued access to GeneSight, but that there is no guarantee that these efforts will be successful. As such, the company has streamlined operations and cost structure accordingly.
In mid-morning Tuesday trading on the Nasdaq, shares of Myriad were down about 12 percent at $12.14.