Myriad Genetics Reports Third Quarter 2021 Results, Continues Strong Execution of Strategic Growth & Transformation Plans
November 3, 2021
Highlights:
- Revenue of $167.3 million up 15% year-over-year. Excluding revenue from divested businesses, revenue increased 27% year-over-year
- Diluted GAAP earnings per share (EPS) of $0.30 and adjusted EPS of $(0.02)
Myriad Genetics, Inc. (NASDAQ: MYGN), a leader in genetic testing and precision medicine, recently announced financial results for its third quarter ended September 30, 2021 and provided an update on recent business performance and strategic transformation plans.
“We are encouraged by our third quarter performance, and the execution of our teammates on our strategic growth and transformation plans that resulted in year-over-year growth in test volumes, margins and revenue,” said Paul J. Diaz, President and Chief Executive Officer. “The quality and accuracy of our products and improving customer service levels continue to position our business for sustainable growth and profitability. I want to thank all of our 2,400 Myriad Genetics teammates for their commitment to advancing the health and well-being of all of our patients. We are encouraged by the growing market opportunities in our core businesses and see significant potential to expand access to quality genetic testing and precision medicines that improve health outcomes and access to needed healthcare services.”
Financial and Operational Highlights:
- Diagnostic test volumes of 252,000 increased 15% year-over-year. Sequential volume was impacted by constraints in access to healthcare providers due to the COVID-19 pandemic, the impact of the Delta variant strain, and typical summer seasonality.
- Hereditary cancer volumes for the quarter were flat year-over-year and decreased 7% sequentially.
- Prenatal test volumes in Women’s Health increased 7% year-over-year and decreased 10% sequentially.
- Tumor profiling test volumes in Oncology increased 33% year-over-year and decreased 15% sequentially.
- Pharmacogenomics test volumes in Mental Health increased 71% year-over-year and 6% sequentially.
- Overall, average selling price (ASP) was stable year-over-year and sequentially after excluding positive revenue adjustments related to better-than-expected cash collections on tests ordered in prior periods.
- Total revenue in the quarter was $167.3 million, an increase of 15% year-over-year.
- Excluding the divested business revenue, RBM, Autoimmune and myPath, quarterly revenue increased 27% year-over-year.
- The following table summarizes year-over-year revenue changes by product category:
|
Three months ended |
| (in millions) |
September 30, 2021 |
|
September 30, 2020 |
|
% Change |
| Product revenues: |
|
|
|
|
|
|
|
| Hereditary Cancer |
$ |
79.4 |
|
$ |
80.5 |
|
(1 |
) |
% |
| Prenatal |
|
23.6 |
|
|
16.6 |
|
42 |
|
% |
| Tumor Profiling |
|
32.9 |
* |
|
17.0 |
|
94 |
|
% |
| Pharmacogenomics |
|
24.1 |
|
|
11.9 |
|
103 |
|
% |
| *Tumor Profiling revenue for the three months ended September 30, 2021 was positively impacted by a milestone payment of $4.0M |
|
- GAAP gross margin in the quarter was 71.4%; adjusted gross margin was 71.7%, which improved 190 basis points year-over-year.
- GAAP total operating expenses in the quarter were $199.4 million; adjusted total operating expenses decreased $1.6 million sequentially to $121.5 million.
- GAAP operating loss in the quarter was $(79.9) million, declining $40.3 million year-over-year; adjusted operating loss was $(1.4) million, improving $10.7 million year-over year.
- Diluted GAAP EPS in the quarter were $0.30, improving $0.50 year-over-year; adjusted EPS were $(0.02), improving $0.13 year-over-year.
- Closed the sale of Myriad Autoimmune’s Vectra testing business on September 13, 2021.
- Ended the quarter with $413.6 million in cash, cash equivalents and investments.
“While we still have a lot of hard work ahead of us, we are now better positioned for growth across all of our business segments as we look to 2022 and beyond,” said Diaz. “Our balance sheet is strong. As a result, we can now focus on investing further in the opportunities we see in the emerging technologies, R&D and commercial strategies that elevate our products to their full potential including, acquisitions, new partnerships, and new business development efforts. We look forward to expanding access to vital genetic testing, and precision medicine, making it easier for patients and partners to engage with us, and delivering sustainable and profitable results for all of our shareholders.”
Read the full report here.