Company Overview
Myriad Genetics, Inc. (MYGN) is a leading molecular diagnostic testing and precision medicine company dedicated to advancing health and well-being for all. With a rich history of innovation and a steadfast commitment to its mission, Myriad Genetics has established itself as a trailblazer in the realm of genetic testing and personalized healthcare solutions.
Established in 1992 and headquartered in Salt Lake City, Utah, Myriad Genetics has grown to become a respected player in the diagnostics industry. The company's core focus areas include Oncology, Women's Health, and Pharmacogenomics, where it develops and offers a diverse portfolio of molecular tests that help assess disease risk, guide treatment decisions, and provide valuable insights to healthcare providers and their patients.
Historical Background
In the late 1990s and early 2000s, Myriad gained recognition for its discovery and commercialization of the BRCA1 and BRCA2 genes, which are linked to hereditary breast and ovarian cancer. The company's BRACAnalysis test, launched in 1996, became a major commercial success and established Myriad as a leader in genetic testing. However, the company also faced challenges during this period, including legal battles over its patents on the BRCA genes.
Over the next decade, Myriad expanded its product portfolio beyond hereditary cancer, moving into areas such as pharmacogenomics, prenatal screening, and prognostic testing for prostate and breast cancer. This diversification strategy helped the company navigate changes in the market and regulatory environment, such as the Supreme Court's 2013 ruling that invalidated certain BRCA gene patents.
In the 2010s, Myriad continued to invest in research and development, launching new tests like MyRisk for hereditary cancer assessment and Prolaris for prostate cancer prognosis. The company also made strategic acquisitions, such as the 2022 purchase of Gateway Genomics, a personal genomics company. These efforts helped Myriad maintain its position as a leading provider of molecular diagnostic testing services.
Challenges and Adaptations
Throughout its history, Myriad has faced a variety of challenges, including reimbursement pressures, increased competition, and evolving regulatory requirements. The company has worked to address these issues through a combination of operational improvements, product innovation, and strategic partnerships. Despite these challenges, Myriad has remained a significant player in the genetic testing and precision medicine industries.
Strategic Vision and Performance
Myriad Genetics' strategic vision is centered on continued innovation, technology-enabled operations, and the creation of a seamless customer experience. In 2024, the company reported total revenue of $837.6 million, reflecting an 11% year-over-year growth. This impressive performance was driven by strong demand across its key product categories, including a 17% increase in Prenatal revenue, a 23% surge in Pharmacogenomics revenue, and an 11% rise in Hereditary Cancer testing revenue.
Innovation and Partnerships
The company's focus on innovation has been a key driver of its success. Myriad Genetics' pipeline of new test offerings, such as FirstGene, Precise Liquid, and Precise MRD, are designed to address unmet clinical needs and provide healthcare providers with cutting-edge diagnostic solutions. The recent collaboration with PATHOMIQ, a developer of AI-enabled prognostic and predictive tests for prostate cancer, further exemplifies Myriad Genetics' commitment to leveraging emerging technologies to enhance its product portfolio and deliver greater value to its customers.
Financials and Liquidity
Myriad Genetics' financial performance has been marked by a strong balance sheet and liquidity position. As of December 31, 2024, the company had $102.4 million in cash and cash equivalents, with an additional $56 million in availability under its $115 million asset-based revolving credit facility. This robust financial foundation provides Myriad Genetics with the flexibility to continue investing in its strategic priorities and pursue growth opportunities.
For the fiscal year ended December 31, 2024, Myriad Genetics reported annual revenue of $837.6 million, annual net income of -$127.3 million, annual operating cash flow of -$8.7 million, and annual free cash flow of -$38.4 million. In the most recent quarter ended December 31, 2024, the company reported quarterly revenue of $213.3 million, quarterly net income of -$22.1 million, with quarterly operating cash flow and free cash flow figures not available. The quarterly revenue growth of 7% year-over-year was driven by continued demand for Pharmacogenomics (+14%) and Prenatal (+12%) testing.
Myriad Genetics operates primarily in the United States, with approximately 92% of its revenue generated domestically in 2024. The company has limited international operations. As of December 31, 2024, Myriad Genetics had a debt/equity ratio of 0.19, a current ratio of 1.90, and a quick ratio of 1.73.
Recent Challenges
One of the notable challenges faced by Myriad Genetics in 2024 was the decision by UnitedHealthcare to no longer provide coverage for certain multi-gene panel pharmacogenetic tests, including the company's GeneSight product. This development had a negative impact on the company's revenue and profitability, with GeneSight revenue representing approximately $45 million in annual run rate. Myriad Genetics has been actively engaged with UnitedHealthcare to address this issue and remains committed to advocating for the clinical utility and value of its pharmacogenomic offerings.
In 2023, Myriad Genetics settled a securities class action lawsuit for $77.5 million and a stockholder derivative lawsuit for $950,000. Additionally, on February 24, 2025, the company announced that CEO Paul J. Diaz will step down on April 30, 2025, and be replaced by current COO Samraat S. Raha.
Resilience and Adaptability
Despite these setbacks, Myriad Genetics has demonstrated its resilience and adaptability. The company has continued to execute on its strategic priorities, including accelerating electronic medical record (EMR) integrations, expanding its sales channels, and optimizing its revenue cycle processes. These initiatives have contributed to the company's ability to maintain profitability and deliver positive adjusted EBITDA and EPS in 2024.
Product Portfolio
Myriad Genetics' business is aligned into three key areas: Oncology, Women's Health, and Pharmacogenomics.
In Oncology, the company offers tests such as BRACAnalysis CDx, an FDA-approved companion diagnostic for identifying patients who may benefit from PARP inhibitor therapy, and MyChoice CDx, which determines homologous recombination deficiency (HRD) status in ovarian cancer patients. The Prolaris test analyzes prostate cancer aggressiveness, while EndoPredict does the same for breast cancer.
The Women's Health segment includes tests like MyRisk Hereditary Cancer, which analyzes 48 genes across 11 cancer types, Foresight carrier screening, Prequel non-invasive prenatal screening, and SneakPeek Early Gender DNA test.
In Pharmacogenomics, Myriad offers the GeneSight Psychotropic test, which helps clinicians optimize medication selection and dosing for mental health conditions.
Human Capital Management
As of December 31, 2024, Myriad Genetics had approximately 2,700 full-time equivalent employees. The company was recognized as a "Great Place to Work" in 2024, with 84% of employees rating it as such. Women held 39% of leadership roles at the company.
Industry Trends
The molecular diagnostics industry is expected to grow at a CAGR of 8-10% over the next 5 years, driven by increasing demand for personalized medicine and genetic testing. Myriad Genetics will need to continue innovating and expanding its product portfolio to capitalize on these industry tailwinds.
Future Outlook
Looking ahead, Myriad Genetics remains focused on driving long-term growth and profitability. The company has reaffirmed its financial guidance for 2025, targeting revenue in the range of $840 million to $860 million and adjusted EPS between $0.07 and $0.11. This guidance reflects the company's confidence in its ability to capitalize on the growth opportunities within its core business segments and its commitment to strategic investments in innovation and operational excellence.
For the full year 2025, Myriad Genetics also anticipates a gross margin range of 69.5% to 70.5%, adjusted OpEx of between $575 million and $595 million, and adjusted operating cash flow of between $20 million and $30 million. For the first quarter of 2025, the company expects revenue between $196 million and $204 million and an adjusted EPS loss between $0.04 and $0.08.
Conclusion
In conclusion, Myriad Genetics has navigated the challenges of the healthcare landscape with remarkable resilience and a steadfast focus on its mission. Through its innovative testing solutions, strategic partnerships, and operational efficiencies, the company has positioned itself as a premier provider of precision medicine and diagnostic services. As Myriad Genetics continues to evolve and adapt to the changing industry dynamics, it remains well-poised to drive long-term value for its shareholders and improve patient outcomes across the medical specialties it serves.