Myriad Genetics’ first quarter results were met with a significant negative market reaction, reflecting investor concerns over a combination of volume softness in key product lines and a reset in full-year expectations. Management attributed the revenue decline primarily to underperformance in its GeneSight pharmacogenomic test, which was affected by UnitedHealthcare’s policy change, as well as slower-than-anticipated growth in hereditary cancer screening among unaffected individuals. CEO Sam Raha described the quarter as “challenging,” highlighting both external payer headwinds and internal operational hurdles, such as workflow disruptions related to electronic medical record (EMR) integrations. The company’s leadership openly acknowledged the complexity and execution challenges facing the business.
Is now the time to buy MYGN? Find out in our full research report (it’s free).
Myriad Genetics (MYGN) Q1 CY2025 Highlights:
- Revenue: $195.9 million vs analyst estimates of $200.4 million (3.1% year-on-year decline, 2.3% miss)
- Adjusted EPS: -$0.03 vs analyst estimates of -$0.05 ($0.02 beat)
- Adjusted EBITDA: -$100,000 vs analyst estimates of -$1.92 million (-0.1% margin, 94.8% beat)
- The company dropped its revenue guidance for the full year to $815 million at the midpoint from $850 million, a 4.1% decrease
- Adjusted EPS guidance for Q2 CY2025 is $0 at the midpoint, below analyst estimates of $0.02
- EBITDA guidance for the full year is $23 million at the midpoint, below analyst estimates of $29.85 million
- Operating Margin: -14.8%, down from -13.8% in the same quarter last year
- Market Capitalization: $491.3 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Myriad Genetics’s Q1 Earnings Call
- Doug Schenkel (Wolfe Research) pressed CEO Sam Raha on how long it would take to simplify Myriad’s business and clarify key performance metrics. Raha estimated several months for a thorough strategic review and emphasized oncology as the cornerstone of future growth.
- Puneet Souda (Leerink Partners) questioned whether other payers might follow UnitedHealthcare in dropping coverage for GeneSight. CFO Scott Leffler responded that no similar moves have occurred among other payers and that some incremental coverage wins were achieved.
- David Westenberg (Piper Sandler) asked for more detail on why EMR integration issues are taking multiple quarters to resolve in hereditary cancer screening. COO Mark Verratti explained that workflow disruptions, account-by-account customization, and patient education requirements are slowing adoption, but efforts are underway to resolve these bottlenecks.
- Tejas Sawant (Morgan Stanley) sought clarity on the sensitivity requirements for the MRD (minimal residual disease) assay and the broader impact of new oncology product launches. CEO Raha described ongoing clinical studies targeting low-shedding cancers and reaffirmed timelines for product rollouts and evidence generation.
- Tycho Peterson (Jefferies) inquired about Myriad’s liquidity position and the underlying assumptions in the updated guidance. Leffler confirmed that available cash and credit lines are sufficient for 2025, with no material deterioration in reimbursement rates expected.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be watching (1) the pace at which EMR workflow solutions drive volume recovery in hereditary cancer testing, (2) the commercial rollout and adoption of new pipeline products, such as the combined carrier screening and AI-enabled oncology assays, and (3) the effectiveness of cost-control initiatives in supporting margin improvement and liquidity. Progress on payer coverage and revenue cycle management will also be important for tracking Myriad’s return to sustainable growth.
Myriad Genetics currently trades at $5.09, down from $7.25 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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