Myriad Genetics Reports Strong Q4 Results

Myriad Genetics MYGN reported a strong fourth quarter, growing revenue 11% year over year, with solid full-year results slightly higher than our 2022 projections. Quarterly results were driven by hereditary cancer and pharmacogenomics volume growth of 16% and 23%, respectively, while Myriad saw reported revenue decline of 2% for the full year. We maintain our fair value estimate of $18.50, and shares appear fairly valued.

Although hereditary cancer testing hit double-digit growth in the quarter, Myriad’s MyRisk still saw revenue decline 3% year over year due to pricing pressure and the competitive landscape we have witnessed in this segment. However, the company has capitalized on tailwinds in the industry to secure additional market share in the hereditary cancer space while aiming to penetrate the broader population of women with a family history of breast or ovarian cancer. As the company is now applying its successful mental health commercial model to women’s health, we are pleased to see a strong start to the SneakPeek direct-to-consumer offering after Myriad acquired the early gender DNA testing in November 2022. Myriad’s strong execution around enhancing its commercial capabilities allows us to confidently project growth for Myriad’s women’s health segment despite flat to minimal growth from MyRisk.

The company experienced a slight dip in fourth-quarter GeneSight sales sequentially. Even so, GeneSight delivered full-year volume and revenue growth of 35% and 36%, respectively. Wins for the mental health business segment include a PLA code assignment (securing reimbursement in Medicare) and national recognition for the results of its Veterans Affairs research study. Although we place a high level of uncertainty around additional reimbursement for GeneSight, we see the establishment of this code and recognition of the efficacy of GeneSight as a step forward in expanding payer coverage.