Myriad Genetics, Inc. (NASDAQ:MYGN) Q4 2019 Earnings Conference Call Transcript

Aug 13, 2019 • 04:30 pm ET

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Myriad Genetics, Inc. (NASDAQ:MYGN) Q4 2019 Earnings Conference Call Transcript

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Presentation
Executive
Mark C. Capone

Company, with increased volumes of reimbursement translating to record fourth quarter revenues and strong earnings momentum as we exit the fiscal year.

Now I would like to review some of the highlights from fiscal year 2019, beginning with our Hereditary Cancer business. Importantly, the Hereditary Cancer business returned to year-over-year growth for the first time in the last five years. Additional progress across a number of fronts during the fiscal year positions this market for continued volume growth. Broadened hereditary cancer guidelines were established for colon, pancreatic and prostate cancer, with companion diagnostic opportunities emerging for the latter two cancers. The cumulative impact of these market expansions totals more than 160,000 incremental patients per year. In addition, based upon published studies from Myriad and other stakeholders, the American Society of Breast Surgeons updated professional guidelines to recommend hereditary cancer testing for all breast cancer patients. This represents another potential 180,000 patient expansion in hereditary cancer testing guidelines.

Lastly, our proprietary risk or test has accelerated penetration in the preventive care market and provides additional differentiation, which we plan to extend with new scientific developments to be announced in fiscal year 2020. Myriad also continues its rapid diversification with new product volume growing to approximately 800,000 tests and representing 75% of test volume versus 65% in fiscal year 2018.

Leading the way from a growth perspective was GeneSight, where total test volumes increased 17% year-over-year. During the year, we formed the leading women's health business unit by integrating our legacy Hereditary Cancer sales force with the Counsyl team and see strong leading indicators for future growth, including a 30% year-over-year increase in new ordering physicians and a 21% increase in doctors ordering two or more products.

With our strategy of scientific differentiation, our frictionless customer experience and broad customer reach, I remain optimistic about our long-term growth prospects and the $4 billion prenatal testing market. From a reimbursement perspective, we made significant progress with GeneSight by publishing the GUIDED and IMPACT studies and submitting our reimbursement dossier to all commercial and public payers.

We were extremely pleased to see our reimbursement efforts translate into our first major coverage decision for GeneSight with the recent UnitedHealthcare Coverage decision. Beyond being the largest commercial payer in the country, UnitedHealthcare is a thought leader in precision medicine and is often a bellwether for additional coverage decisions.

During the year, we also launched new innovative approaches to engage with a broader set of reimbursement decision makers. As a result, we signed our first major employer agreement with Kroger, which includes the Pharmacy Intervention Program. In addition, we continue to advance our discussions with other Fortune 500 companies evaluating GeneSight and Vectra coverage decisions and have increased investments in this promising new payer market channel.

Another innovative approach to expand coverage is through pharmacy benefit managers, and we expect to sign such an agreement in the near future. And we'll provide more details at that time.

In summary, we remain bullish on our ability to drive