Myriad Genetics, Inc. · NASDAQ:MYGN
Myriad Genetics — Q2 2017 Earnings Presentation
22 slides from Myriad Genetics's earnings presentation, Feb 7, 2017
Slide 1: Myriad Genetics Fiscal Second-Quarter 2017 Earnings Call
Myriad Genetics Fiscal Second-Quarter 2017 Earnings Call 02/07/2017 Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements Some of the information presented here today may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. These statements are based on management’s current expectations and the actual events or res
Slide 3: Second Quarter FY2017 Financial Results Beat Guidance on Both Top and Bottom Line
Second Quarter FY2017 Financial Results Beat Guidance on Both Top and Bottom Line 2Q17 Actual Results 2Q16 Actual Results YoY Growth Guidance Revenue $196.5 $193.3 2% $188 - $190 million GAAP EPS $0.09 $0.50 (82%) $0.06 - $0.08 Adjusted EPS $0.26 $0.45 (42%) $0.23 - $0.25 * Based on higher than anti
Slide 4: Key Accomplishments in 2Q17
Key Accomplishments in 2Q17 Major Progress on Three Key Strategic Imperatives Strategic Imperative Accomplishment Continued Leadership in an Expanding Hereditary Cancer Market Grew hereditary cancer revenue by 3% sequentially Oncology volume up sequentially reversing 18 month trend Signed agreement
Slide 5: Fiscal Second-Quarter 2017 Revenue By Product
Fiscal Second-Quarter 2017 Revenue By Product Achieved Highest Revenue in Last Three Years Product 2Q17 2Q16 YoY Growth Hereditary Cancer $143.9 $165.6 (13%) GeneSight $21.7 NA* NM Vectra DA $10.7 $11.3 (5%) Prolaris $3.1 $1.9 63% EndoPredict $1.6 $0.9 78% Other $2.9 $2.9 0% Total Molecular Diagnost
Slide 6: Fiscal Second-Quarter Financial Results
Fiscal Second-Quarter Financial Results 2Q17 2Q16 YoY Growth Total Revenue $196.5 $193.3 2% Gross Profit $152.1 $152.7 (0%) Gross Margin 77.4% 79.0% NM Operating Income $13.2 $45.2 (71%) Adjusted Operating Income $23.6 $48.4 (51%) Adjusted Operating Margin 12.0% 25.0% NM Net Income $5.9 $37.1 (84%)
Slide 7: 3Q17 and FY17 Financial Guidance
3Q17 and FY17 Financial Guidance Narrowing Financial Guidance Within The Previous Range Metric Fiscal Third-Quarter 2017 Fiscal Year 2017 Revenue $188 to $190 million $745 to $755 million GAAP Diluted EPS $0.08 to $0.10 $0.31 to $0.36 Adjusted EPS $0.23 to $0.25 $1.00 to $1.05 For additional informa
Slide 8: Oncology Sees Volume Growth in 2Q17
Oncology Sees Volume Growth in 2Q17 Sales Force Productivity and New Strategies Leading to Positive Momentum Sales Force Replenishment ION and U.S. Oncology agreements Sales force productivity Launch of customizable panels
Slide 9: Myriad Remains In-Network With 95% of Plans
Myriad Remains In-Network With 95% of Plans Physicians and Patients Continue To Demand Myriad’s Differential Quality As out-of-network provider: Physicians continue to demand highest quality test Myriad maintains >80% of historic volume Typically reimbursed at 60% to 80% of list price
Slide 10: Substantial Diversification in Testing Volumes
Substantial Diversification in Testing Volumes > Two Thirds of Volume Attributed to Non-Hereditary Cancer Tests 35% CAGR ≈180,000 tests 99% Hereditary Cancer ≈600,000 tests ≈ 33% Hereditary Cancer
Slide 11: Reimbursement Will Drive Significant Leverage
Reimbursement Will Drive Significant Leverage $620M Annual New Product Revenue With Full Reimbursement Current Revenue Run Rate at Full Reimbursement $50M $90M $460M $20M $620M Combined
Slide 12: Landmark GeneSight Study Near Completion
Landmark GeneSight Study Near Completion Study Will Enhance Already Strong Clinical Utility Data Around GeneSight Mean Improvement in HAM-D17 FDA Approved Medications* Data in Fall of 2017 *Sources: FDA summary bases of approvals Hall-Flavin DK, et al. Utility of integrated pharmacogenomic testing t
Slide 13: Strong New Health Economic Data For GeneSight
Strong New Health Economic Data For GeneSight Mounting Evidence Supporting Substantial Cost Savings Year One Cost Savings With GeneSight Data in CY17 Sources: Winner JG, et al. Combinatorial pharmacogenomic guidance for psychiatric medications reduces overall pharmacy costs in a 1 year prospective e
Slide 14: Most MDD Patients are Seen in Primary Care
Most MDD Patients are Seen in Primary Care Significant Opportunity to Leverage Large Preventive Care Sales Team Treating Physician for Patients With MDD Most MDD patients are seen by primary care consisting of general practice, internal medicine and OB GYNs Top 16,000 primary care physicians and OB
Slide 15: Data Supports Vectra DA's Ability to Predict RP
Data Supports Vectra DA’s Ability to Predict RP Correct Analysis of AMPLE Study Further Adds to This Claim Sources: SWEFOT Year 1: Hambardzumyan K, et al. Ann Rheum Dis. 2015;74:1102–9. AMPLE: Curtis et al. Arthritis Rheumatol. 2016 Nov 3. doi: 10.1002/art.39981. AMPLE: Fleischmann et al. Arthritis
Slide 16: Vectra DA Predictive of Therapy Response
Vectra DA Predictive of Therapy Response Patients With a Low Vectra Score Do Substantially Better on Low-Cost Therapy Rate of Response Low Vectra DA Score High Vectra DA Score p=0.006 p=0.04 Sources: *Hambardzumyan K, Saevarsdottir S, Forslind K, et al. A multibiomarker disease activity score and th
Slide 17: Draft LCD Would Expand Coverage For Prolaris
Draft LCD Would Expand Coverage For Prolaris 50% of Prostate Cancer Patients (>100,000/yr) Would be Covered 200,000 localized prostate cancer patients Medicare Medicare (Favorable Intermediate) Medicare Non - Covered Commercial Non - Covered Commercial Covered United States Prolaris Insurance Covera
Slide 18: Ramping Payer Coverage for EndoPredict
Ramping Payer Coverage for EndoPredict Now Covered by Plans Representing 70 Million Lives Commercial Covered Submit dossier to Medicare in Q317 Favorable recommendation from BCBS tech assessment committee Evidence Street Coverage decisions from payers representing 70 million lives
Slide 19: Final myPath Melanoma Studies Accepted for Publication
Final myPath Melanoma Studies Accepted for Publication Dossier To Be Submitted to Medicare and Private Payers by End of FY17 myPath Melanoma Diagnostic Accuracy myPath Melanoma Diagnostic Accuracy myPath Melanoma Clinical Utility n=437 patients n=736 patients n=218 patients n=182 patients Sources: D
Slide 20: Multiple PARP Clinical Studies to Report in CY17
Multiple PARP Clinical Studies to Report in CY17 8 Additional Pivotal Clinical Study Results Expected Indication Number of Studies First Data Expected Total Patients HER2- metastatic breast cancer 3 AZN olaparib data reported 160,000 Neoadjuvant TNBC 1 Jun. 2017 70,000 Other ovarian 3 Mar. 2017 50,0
Slide 21: International Revenue Contributing to Growth
International Revenue Contributing to Growth Significant Progress Toward Achieving Strategic Goals International Product Revenue as a Percentage of Total Revenue Goal to have international product revenue comprise 10% of sales
Slide 22: Diagnostics Are the Keystone for Personalized Medicine
Diagnostics Are the Keystone for Personalized Medicine Focused on Six Medical Specialties with Over $200B in Waste ≈$700B in U.S. Healthcare Spending 30% Healthcare Spending Waste* Oncology Preventive Care Urology Dermatology Autoimmune Neuroscience Diagnostics represent 3% of spend but drive 70% of