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

Aug 13, 2019 • 04:30 pm ET

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

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Presentation
Executive
Mark C. Capone

additional reimbursement decisions for GeneSight and other new products through positive payer technical assessments, employer agreements and pharmacy benefit manager programs. In our inaugural year as a participant in the prenatal market, we laid the foundation for broader reimbursement for our tests.

First, we continue to advocate for average risk reimbursement for non-invasive prenatal screening and remain convinced that this will become standard of care for the 3.7 million pregnancies every year in the United States. With ForeSight, our expanded carrier screening product, two pivotal studies were published identifying the approximately 40 genes required to meet published guidelines, providing the scientific evidence required to support reimbursement for the premium-priced expanded carrier screening code.

Finally, we anticipate two new reimbursed products in fiscal 2020 based on our recent Medicare LCD for myPath Melanoma and our FDA submission for myChoice HRD in late-stage ovarian cancer. In International markets, we continue to expand reimbursement for EndoPredict with new coverage decisions in the United Kingdom, Italy and Greece. Additionally, we received two new companion diagnostic approvals in Japan in ovarian and metastatic breast cancer, which have propelled Japan to our largest international market. Additionally, we see a meaningful opportunity to expand the market in Japan with the hereditary breast and ovarian cancer approvals in fiscal 2020.

Finally, with Elevate 2020, we continue to make substantial strides in building a more efficient and streamlined organization. This year, our gross margins increased year-over-year, despite the impact of the lower margin prenatal tests as we made significant advances in our DNA, RNA and protein laboratories. The Company's commitment to this program was evident as the Counsyl acquisition went from a $12 million quarterly loss to profitability in three quarters. We are currently working on implementing additional programs that will benefit fiscal 2020 expenses and beyond.

In summary, while we face some unanticipated headwinds in fiscal 2019, I'm proud of our team's ability to combat these headwinds through a combination of innovation and disciplined execution. As we look forward to fiscal year 2020, we have a solid hereditary cancer foundation and an opportunity for transformational earnings growth with broader commercial coverage and adoption of our new tests. We truly believe we will exit the fourth quarter as a transformed company with record quarterly revenues and outstanding future growth prospects.

I will now turn the call over to Bryan to provide an overview of our financial results and fiscal year 2020 guidance.

Executive
Bryan Riggsbee

Thanks, Mark. I would like to start by providing a more in-depth overview of our fiscal fourth quarter financial results. Fourth quarter total revenues of $215 million was up 11% compared to the $194 million reported in the same period in the prior year. For the full year, our total revenue was $851 million and increased 14% relative to the $744 million reported last year. Of note, we grew this year on an organic basis despite the unprecedented headwinds from laboratory benefit management programs.

Hereditary Cancer revenue in the quarter of $119 million, which was up 1%