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Myriad Genetics Q3 Revenues Increase 15 Percent

NEW YORK – Myriad Genetics on Tuesday said its revenues and test volumes for the three months ended Sept. 30 increased 15 percent year over year.

Revenues for Q3 2021 were $167.3 million, up from $145.2 million in the year-ago quarter, beating the consensus Wall Street estimate of $165.0 million. "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," Myriad President and CEO Paul Diaz said in a statement.

The Salt Lake City-based firm recently changed its financial year to match the calendar year. It previously ended its fiscal year on June 30.

Molecular diagnostics revenues for the quarter increased 23 percent year over year to $167.3 million from $135.7 million a year ago. The company recorded no revenues from pharmaceutical and clinical services during Q3, compared to $9.5 million in Q3 2020.

Myriad's hereditary cancer testing revenues were $79.4 million during Q3, down 1 percent from $80.5 million in the prior-year quarter. Tumor profiling contributed $32.9 million in revenues, up 94 percent compared to $17.0 million. Prenatal testing brought in $23.6 million, up 42 percent year over year from $16.6 million. The firm's pharmacogenomics test, GeneSight, netted $24.1 million in revenues, more than double the $11.9 million in the year-ago quarter.

In its autoimmune segment, Vectra DA — the rheumatoid arthritis test that Myriad announced in May it was selling to Laboratory Corporation of America — booked revenues of $7.3 million, down 20 percent from $9.1 million in Q3 2020. Vectra DA and the associated operating assets and intellectual property transferred to Labcorp on Sept. 13. Myriad recorded no revenues in its "other" tests category in Q3, though this segment contributed $600,000 in revenues during the same quarter last year.

Myriad's oncology segment, which includes the MyRisk hereditary cancer test, the EndoPredict breast cancer recurrence test, the Prolaris prostate cancer test, and myChoice CDx for predicting response to PARP inhibitors, recorded revenues of $76.8 million in Q3, marking a 32 percent increase year over year and a 2 percent revenue decline sequentially. The mental health unit, which includes the GeneSight test for guiding treatment decisions for depression, anxiety, ADHD, and other psychiatric conditions, had revenues of $24.1 million, more than double the revenues compared to Q3 2020, and a 7 percent increase over Q2 of this year.

The company's women's health business, which includes tests to assess a woman's risk of cancer and tests for family planning, had revenues of $59.1 million, a 6 percent increase year over year and a 12 percent decline sequentially. During Q3, Myriad launched a new version its MyRisk Hereditary Cancer test that provides a polygenic risk score to all breast cancer patients regardless of their ancestry. Following the launch of this offering, "we're seeing increasing market interest among unaffected women for our hereditary cancer test," Diaz said during a call to discuss the company's financials.

The firm said that total test volumes for the quarter were 252,000, up 15 percent year over year. Sequentially, test volumes were down around 8 percent compared to test volumes of 273,000 during the second quarter of this year.

In addition to closing the sale of Vectra DA, Myriad also closed the sale of its Rules Based Medicine unit to IQVIA during the quarter. Also, in June, it sold its MyPath Melanoma test to Castle Biosciences. Excluding the costs associated with these three divestures, Q3 revenues increased 27 percent year over year.

Bryan Riggsbee, executive VP and CFO at Myriad, said during the call that the $380 million from the sale of these assets will be used to strengthen the firm's balance sheet and fund investments in technology, commercial model, and acquisitions.

A part of the proceeds will also go toward settling a whistleblower lawsuit alleging that Myriad and its subsidiary Crescendo Bioscience engaged in two schemes to improperly induce the ordering of the Vectra DA test. The company recorded $48 million in expenses during the quarter as part of that settlement.

With the divestures now behind the firm, Diaz said during the call that Myriad is "feeling confident" about expanding its product portfolio via acquisitions in its areas of expertise — women's health, primary care, and oncology. "We're looking for ways to accelerate our tech-enablement … [which] has been an area of underinvestment historically and where we've made up a lot of ground," Diaz said. He added that the company is also looking to acquire assets that allow it to leverage data to "deliver more than tests" and meet physicians' desire for information they can use to guide treatments for patients.

Myriad posted a net profit of $24.6 million, or $.30 per share, for the quarter compared to a net loss of $15.2 million, or $.20 per share, a year ago. On an adjusted basis, Myriad's loss per share was $.02 and aligned with the consensus Wall Street estimate.

Its R&D costs grew 7 percent to $18.8 million from $17.6 million, while its SG&A costs were up 45 percent to $180.2 million from $124.1 million.

The company ended the quarter with $295.2 million in cash and cash equivalents and $70.9 million in marketable investment securities.

Due to continued uncertainty from the COVID-19 pandemic, Myriad said it will not provide financial guidance for the fourth quarter or for fiscal year 2021. It will resume forecasting revenue guidance next year.

In morning trading on the Nasdaq, Myriad shares were up 2 percent at $31.87.