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Test Volume Growth Drives Q3 Revenue Gains for Myriad Genetics

NEW YORK – Myriad Genetics reported after the close of market Monday year-over-year revenue growth of 23 percent for the third quarter of 2023.

The Salt Lake City-based genetic testing company finished the three months ending Sept. 30 with $191.1 million in total revenue, driven by 40 percent year-over-year growth in test volumes, compared to $156.4 million for the same quarter in 2022. The top-line result beat analysts' average estimate of $179.2 million.

Revenue for its hereditary cancer testing jumped 23 percent year over year to $86.5 million from $70.5 million. Tumor profiling test revenue fell 2 percent to $30.2 million from $30.8 million. Prenatal test sales were up sharply at $39.5 million versus $22.1 million for the comparable quarter of 2022, and the firm’s pharmacogenomics test revenue was up 8 percent to $35.7 million from $33 million.

In a call with analysts and investors, Chief Commercial Officer Mark Verratti announced that United Healthcare has issued a positive medical policy covering the firm's Prolaris prostate cancer test in the biopsy setting for all risk groups. "This policy will take effect on Jan. 1 of 2024," he said. Prolaris volumes were up 18 percent year over year.

Verratti also shared that hereditary cancer testing in the women's health area rose 22 percent year over year, marking five consecutive quarters of positive growth. Furthermore, he said that the firm has now sold 1 million SneakPeek Early Gender DNA tests. "Now that the test is stocked in over 4,000 Walgreens stores, we're optimistic on future test growth," Verratti said.

CFO Bryan Riggsbee provided an update on Myriad's payments stemming from the settlements of two lawsuits.

Myriad had agreed in August to pay $77.5 million to settle a class-action shareholder lawsuit and has the flexibility to use shares for the final payment. "As we make our final determination of whether to use cash, stocks, or a mixture of both for the final payment," Riggsbee said, "we will continue to review our capital structure funding requirement and alternatives available to us."

Myriad also settled a patent infringement lawsuit with Ravgen in October. The company paid Ravgen $5 million on Oct. 31. An additional $5 million is payable on or before Oct. 31 of next year and $2.75 million is due on or before Oct. 31, 2025. An additional $21.25 million may be payable beginning in 2026. "Any final payment of that $21.25 million is contingent on whether Ravgen is successful in resolving all outstanding patent re-examinations and litigation," Riggsbee said.

Riggsbee also noted that with capital needs for the construction of a new lab behind the company, "we anticipate total liquidity of approximately $107.5 million at the end of 2023."

Myriad's Q3 net loss was $61.3 million, or $.75 per share, compared to a loss of $35.1 million, or $.43 per share, in Q3 last year. On an adjusted basis, Myriad's loss per share was $.03 per share. Analysts, on average, had predicted a loss of $.08 per share.

Myriad's R&D spending rose approximately 17 percent to $24 million from $20.5 million in the same quarter last year, while its SG&A expenses rose around 4 percent to $136.1 million compared to $130.5 million in Q3 2022.

Myriad ended the quarter with $76 million in cash and cash equivalents and $10.3 million in marketable investment securities.

The company raised its 2023 revenue guidance to between $747 million and $753 million, up from a previous range of between $730 million and $750 million. It expects to report an adjusted loss per share between $.28 and $.33 for the year.

Myriad also provided its first guidance for fiscal year 2024, anticipating revenues between $815 million and $835 million.

Shares of Myriad jumped 16 percent to $19.02 in Tuesday morning trade on the Nasdaq.