NEW YORK – Myriad Genetics said after the close of the market on Tuesday that after completing a strategic review of its business units and products, the company has decided to seek a buyer for its autoimmune business, including rheumatoid arthritis test Vectra DA, and reorganize its international operations.
Myriad President and CEO Paul Diaz said in a statement that although the company believes in the long-term growth potential of the multi-protein biomarker blood test, "we believe the growth prospects for this product are even more significant in an organization with greater focus and complementary capabilities in autoimmune disease." According to Myriad, Vectra DA's pre-pandemic sales exceeded $40 million annually, though the test's quarterly revenues had been declining in year-over-year comparisons for several quarters before the pandemic.
Diaz took over the reins in August, following Mark Capone's resignation as CEO in February after several quarters of declining revenues, and he has the task of putting Myriad back on a stronger financial footing. During its last earnings call in November, the company's executives outlined a three-phase plan for growing the company's revenues and reducing costs.
In the first phase, Myriad will focus on recovering from the impact of the pandemic and on lowering costs. In the second phase, Myriad will refocus on key growth initiatives and improving financial performance, and in the third phase, the company will invest in new innovations and start mulling M&A opportunities. Myriad said it will also implement a $40 million annualized cost savings plan over the next nine months and invest $20 million toward marketing efforts and improving customers' experience.
In addition to selling Vectra DA, the company had indicated back in November that it planned to sell the Myriad RBM pharmaceutical contract research services business and the myPath Melanoma dermatology test.
"As part of our transformation and growth plan, we are pursuing strategic alternatives for our autoimmune business and realigning our international business unit to streamline operations, reduce complexity and cost, and concentrate on our biggest growth opportunities," Diaz stated. "These actions are among the key initiatives we have undertaken over the last several months to improve our competitive position, commercial capabilities, and focus on operational excellence."
In reorganizing its international presence, Myriad plans to concentrate its direct-selling efforts in high-growth markets, such as Germany, France, and Japan, where there is greater demand for companion diagnostics, hereditary cancer risk assessments, and test kits. The company plans to serve other global markets through distributors and other business models. Myriad estimated that these efforts will lead to $5 million in cost savings.
In line with its new international operational strategy, Myriad recently signed an agreement with Burning Rock Biotech in China to use its myChoice CDx in Phase III drug development studies and in clinics. The company also said it will license the myChoice test to pathology institutes in Germany and France. The company further highlighted that it will attempt to drive adoption of its products in large Asian markets, such as Japan, where its BRACAnalysis CDx brought in $7.5 million in revenues for the three months ended on Sept. 30, marking a 200 percent year-over-year increase.
The company did not address potential reductions in staff that may result from these changes. "We are working closely with our teammates to secure opportunities in line with their career interests and objectives," a spokesperson said. "We have implemented retention and other programs as part of our transition plan."