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During the call, we will review the financial results we released today, and afterwards, we will host a Q and A session. Quarterly earnings release was issued this afternoon on Form eight ks can be found on our website at investor.myriad.com. I'm Matt Scalo, Senior Vice President of Investor Relations On the call with me today are Sam Raha, our President and Chief Executive Officer Scott Loeffler, our Chief Financial Officer and Mark Veratti, our Chief Operating Officer. This call can be heard live via webcast at investor.myriad.com and a recording will be archived in our Investors section of our website along with this slide presentation. Please note that some of the information presented today contains 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 results may differ materially and adversely from these expectations for a variety of reasons. We refer you to the documents the company files from time to time with the SEC, specifically the company's annual report on Form 10 ks its quarterly reports on Form 10 Q, and its current reports on Form eight k.
7m 37s
These documents identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward looking I will now turn the call over to Sam. Thanks, Matt. Good afternoon, everyone, and thank you for joining us. While I'm pleased to lead my first earnings call as president and CEO, we had a challenging first quarter with revenue of 196,000,000 at the lower end of our first quarter target range, representing a decline of 3% year over year. Strength in our prenatal and oncology MyRisk tests were offset by softness in volume for GeneSight unaffected hereditary cancer tests. If we exclude the United Healthcare impact of GeneSight the revenue associated with the EndoPredict divestiture and the one time benefit from retroactive coverage by a large payer for one of our tests, first quarter of twenty twenty four total Q1 revenue grew 5% year over year. In the quarter, we saw strong performance for a number of our tests. Including foresight and prequel which had volume growth of 10% year over year and continued strong demand for our MyRisk test for cancer patients. Part of our oncology business with test volume growth of 11% year over year ago period.
8m 56s
However, we had softness in 2% year over year impacted by UnitedHealthcare policy change related headcount reduction and marketing spend reallocation actions we took in the quarter. Test volume of Myriad's for screening of unaffected individuals part of our women's health business was flat year over year and reflects slower than expected ramp and testing volume from our breast cancer risk assessment program and from customer sites that have had EMR integrations. Mark will share more about these challenges in his section. While we are actively working on actions to increase volume for GeneSight and Myriadis for unaffected individuals, we are projecting softer than planned volume for both of these tests. And consequently have updated our 2025 financial guidance We've lowered our annual revenue by $35,000,000 from the prior midpoint and reduced OpEx by $25,000,000 from the prior midpoint. Scott will share more about our updated guidance in his section. We've started taking deliberate steps to reduce our overall projected spending while part prioritizing investments and resources on driving 2025 revenue and high value new product development including precise MRD and AI enabled Prolaris. Before I transition to Mark, I wanna update you on the progress we're making on our new product pipeline.
10m 20s
First, we're on track to launch First Gene, our combined carrier screening and NIPS assay within the next couple of months. Next, the precise MRD, positive clinical data with presented at the AACR conference last week additional clinical data will be presented at ASCO in June. We are making progress on our path to launch our first MRD test in the first half of twenty twenty six. Finally, we're on track to launch our first AI enabled Polaris test to support clinical decisions at the time of biopsy in partnership with OMIC by the end of this year. With that, I'll now turn it over to our Chief Operating Officer, Mark Veratti. Mark? Thanks, Sam. Turning to the first quarter.
11m 5s
First quarter total revenue declined 3% year over year driven by the underperformance in GeneSight and Myriadisks for the unaffected patients in our women's health channel. As Sam mentioned, our prenatal performance was a highlight in the quarter, revenue growth of 11% over the same period, and 15% excluding SneakPeak. We saw healthy demand across both our carrier screen and NIPS lines continued traction from our mid fourth quarter launch of Prequel at eight weeks gestational age. Our hereditary cancer revenue was down 2% for the quarter. We saw positive growth in our oncology channel, although our hereditary business in our women's health channel continue to be impacted by Myriad integrations ramping slower than expected. We have system integrations across 15 plus different vendors, including strategic partnerships, with Athena, Epic, and Flatiron. We are addressing workflow disruptions account by account that can take several quarters to stabilize. As an example, we recently met with Epic to integrate our My Gene History assessment into our Epic integrations to better identify patients, that qualify for hereditary cancer testing and improving the provider experience. We have also identified a handful of other workflow improvements we have activated our teams to address over the coming quarters.
12m 24s
While this situation continues to be a headwind to volume growth this year, we are optimistic about addressing these challenges in the coming quarters. In addition, we continue to see positive momentum from our cancer risk assessment programs, were implemented. However, they are not at scale yet to materially impact the overall hereditary cancer performance. Turning to GeneSight. Revenue was down 20% year over year due primarily to the anticipated impact of UnitedHealthcare's coverage policy change effective January 1. GeneSight test volumes grew 2% over a year ago period, impacted by our to reduce resources in this area during the first quarter. Moving to oncology. Myriadis remains the gold standard in the market for hereditary cancer testing. Building on this cornerstone, our strategy in oncology remains to serve the continuum of patient care from screening to therapy selection, to monitoring and therapy adjustment for the most prevalent cancer indications. In the first quarter, total oncology revenue declined 2% over the first quarter of twenty twenty four. My risk affected test volume was a highlight, with 11% year over year volume growth. Total up factor hereditary cancer testing also continues to see headwinds from further anticipated declines in BRAX CDx testing.
13m 41s
Shifting to prostate cancer. Polaris revenue in the first quarter decreased 2% year over year similar to our performance in the fourth quarter of twenty twenty four. Overall demand remains consistent with 2024 trends, and our view remains that the confusion over the updated NCCN guidelines will not create any meaningful headwinds for testing volumes. Our updated 2025 revenue guidance reflects no change to our Polaris assumptions. I would like to emphasize again that Polaris is included the NCCN prostate cancer guidelines for low intermediate, and high risk patients at the time of initial biopsy. Furthermore, every test in urology market that Polaris competes with has the same NCCN Category IIa level of evidence. Guidelines also state the need for germline and tumor profile testing for certain prostate cancer patients. And now that we have added Pathomix AI technology platform to our portfolio, Myriad will be the only company that will offer AI, biomarker, germline, and tumor profile testing. Moving to our women's health business.
14m 46s
In the first quarter, women's health delivered $87,000,000 of revenue an increase of 4% over the prior year period. Prenatal testing was a highlight with 11% revenue growth year over year as we continue to sell deeper into current accounts and win new accounts. We continue to see growing traction from the q four launch of PreqLateWeeks, and believe this test will continue to support our positive growth moving forward. The strength in prenatal was partially offset by the weakness in unaffected hereditary cancer testing, which I mentioned earlier. However, our women's health team continues to see positive traction in hereditary cancer testing, from our partnerships with J Screen and Cancer Care. We remain optimistic about the potential contribution to overall growth from EMR integration and breast cancer risk assessment program implementations. Turning to pharmacogenomics. The first quarter, GeneSight revenues were 31,000,000 impacted by UnitedHealthcare's coverage policy change effective January 1. We continue to work with UnitedHealthcare, which includes submitting additional data, such as the increased economic utility data recently published in the Journal of Clinical Psychopharmacology, as well as more data to follow in the second half of the year. Our team continued to drive expansion of ordering provider base which is over 30,000 providers in the quarter.
16m 4s
I am proud of our GeneSight team that continues to drive growth and focus on the unmet need in mental health care treatment. Our strategy for GeneSight growth includes continuing our highly effective digital engagement from driving provider and patient awareness to provide to provider onboarding. It also includes optimizing patient direct payment options optimizing revenue cycle workflows to maximize reimbursement. I will now turn the call over to our CFO, Scott Leffler.
16m 33s
Thanks, Mark. I'll start with a recap of our Q1 consolidated financial results. For the first quarter, we reported a 3% year over year decline in revenue, with test volume up 1% but average revenue per test down 4%. The underlying current period rate environment remains stable and consistent with the favorable performance we saw throughout 2024. The decline in overall revenue per test reflects the absence of any meaningful contribution from prior periods in the first quarter of twenty twenty five. Compared to a $7,000,000 benefit in the first quarter of twenty twenty four which resulted from positive change of estimates as well as a one time benefit from a payer who implemented coverage of one of our products on a retroactive basis. In addition, Q1 rates were unfavorably impacted by the change in UnitedHealthcare policy with respect to GeneSight coverage. Notwithstanding the headwind items, the stability and underlying rates across our portfolio represents another proof point to the great work being done by our revenue cycle and payer market teams along with others throughout the company. As Mark pointed out, the prenatal testing business saw the growth in the first quarter with revenue increasing 11% year over year.
17m 49s
Our Pharmaco Genomics business saw revenue decline 20% year over year due to the impact of the UnitedHealthcare coverage decision and our reallocation of commercial resources to other product lines. Even with the q one revenue decline, we were able to expand our gross margins by 50 basis points, delivering a 69% gross margin. This year over year improvement reflects lab efficiencies, and is a testament to the power of our scalable business model. First quarter adjusted operating expense increased minimally year over year and reflect the balance between greater investment in R and D and cost controls across SG and A. We continue to focus on striking the right balance between investment for future growth and profitability. In addition, I wanted to call out an income tax benefit of $29,000,000 we recognized in the first quarter. While this benefit is largely excluded from non GAAP EPS, it is especially noteworthy and it is expected to result in approximately $13,000,000 of cash tax refunds and interest payments to the company. Anticipated to be received in the next few quarters. Next, we'll take a deeper look at the unusual items impacting our year over year revenue trajectory to provide a better sense for performance of the underlying business.
19m 8s
While revenue in Q1 of this year compared to Q1 of twenty twenty four declined 3% You've also heard both Mark and Sam reference a first quarter twenty twenty five revenue growth rate of 5% after adjusting for the impact of those three key items on our Q1 of twenty four baseline. UnitedHealthcare's impact on GeneSight of $10,000,000 the divestiture of our EndoPredict European business of $3,000,000 and the Q1 twenty twenty four benefit of $3,000,000 from the payer who granted retroactive coverage to one of our products. By doing so, we're able to show what we consider to be a clearer view as to Myriad's underlying performance trends. Next, I'll discuss profitability, cash flow, and liquidity. This year, Q1 adjusted EBITDA was near breakeven. First quarter is typically a heavier cash burn quarter, and adjusted operating cash flow was a usage of approximately $10,000,000 We finished Q1 with $92,000,000 of cash and cash equivalents and $42,000,000 available under our revolver subject to ongoing requirements. We believe that our liquidity will be sufficient to meet our projected operating requirements through 2025 but we plan to continue to evaluate opportunities to further strengthen the balance sheet to ensure a multiyear liquidity runway.
20m 29s
Next, I'll cover our updates to full year 2025 financial guidance. For the full year 2025, we are updating the financial guidance that was previously issued in February. Now expect annual revenue of $8.00 $7,000,000 to $83,000,000 a gross margin range of 68.5% to 69.5%. Adjusted OpEx of between $555,000,000 and $565,000,000 This results in adjusted EPS of between a loss of $0.2 and a gain of 2¢. For full year 2025. We are also targeting adjusted EBITDA of between 19,000,000 and $27,000,000 We are not providing quarterly guidance. But as you think about the revenue trajectory during the rest of 2025, we are expecting modest sequential increases each quarter. This new revenue range reflects the impact of our reallocation of commercial resources away from GeneSight and towards other products as well as the slower than anticipated ramp in volume contributions a number of initiatives referenced by Sam and Mark impacting hereditary cancer testing volumes. The new OpEx range is reflective of deliberate step to reduce discretionary spend without compromising our commitment to strategic growth investments in key areas such as our commercial organization and new product development. Now let me turn the call back to Sam.
21m 59s
Thanks, Scott.
22m
I want to reiterate that we understand the challenges we face in 2025. That we have activated plans to overcome these challenges and our guidance reflects this. I'd like to end by sharing a framework that I'll be using to lead Myriad's success going forward. It's simple and based on three elements. Compelling strategy, strong team and organizational design, and execution excellence. In terms of strategy, we have started looking across everything we do to determine what will best enable us to maximize profitable growth and to increase our market share by leveraging our differentiated capabilities. While our strategy refresh will take several months, we are resolute on oncology remaining the cornerstone of Myriad. And a critical part of our go forward strategy will continue to be meaningfully serving the cancer care continuum from screening to therapy selection to treatment monitoring with our portfolio of testing products. In terms of team, I'm excited to have Mark Parati stepping into the COO role, being able to leverage deep understanding of our customers and our company. And to have Brian Donnelly joining us as our new CCO being able to leverage his proven commercial expertise and experience domain knowledge. Over the last few months, we've also added key talent in strategic areas [indiscernible] as SVP of Oncology R and D and Lew Wallabop.
23m 25s
As SVP of our Biopharma Services and CDx business. In terms of execution excellence, areas we will focus on strengthening include product development and commercial launch planning. While we have had a disappointing start to the year, I'm as excited now as I was when I joined Myriad in December 2023. About the potential for Myriad. The potential for sustained profitable growth. Gaining market share, and positively impacting an increasing number of patient lives. The management team and I are now focused on unlocking that potential by ensuring we are pursuing a compelling strategy strengthening our team and organizational capabilities, and improving execution. I'll now pass the call back over to Matt for Q and A. Thanks Sam. And as a reminder, during today's call, we use certain non GAAP financial measures. A reconciliation of the GAAP to non GAAP financial results and a reconciliation of GAAP to non GAAP financial guidance can be found in our earnings release and under the Investor Relations section of our website. Now we are ready to begin Q and A. In order to ensure broad participation we are asking participants to please ask only one question and one follow-up. Operator, we're now ready for the Q and A portion of our call.
24m 53s
To be announced. To withdraw your question, please press 11 again. Our first question comes from the line of Doug Schenkel from Wolfe Research.
25m 12s
Hey, guys. Thanks for taking the questions. So Sam, as you acknowledged, it's disappointing quarter. It's messy. And at a high level, for many investors, there's just too many moving parts in the Myriad equation. This quarter, it's weather, it's guideline debates, it's divestiture impact, it's united issues. It's just a lot, especially given the history of the company. How long is it gonna take for you to simplify this and to to clean this up? I mean, if if I think of your prepared remarks, know, it's twenty minutes of lots of lots of moving parts for a company that's clearly struggling right now. How do you simplify it?
25m 57s
How long is it gonna take? And if you were to say, like, hey. These are the three most important metrics to just kinda simplify it for everybody moving forward. What are those metrics? So that's that's that's a lot, but I think it's know, probably the biggest thing that's on everybody's mind right now. And then, you know, my follow-up is really on GeneSight. Back in November, you talked about this being a $40,000,000 headwind.
26m 22s
What is it now? I'm still not clear on what the guidance bridge is you know, in spite of having lots of slides on it mathematically. I don't know what the bridge is. So if you could walk us through what's united, what's out what else is in there, that would be helpful. Thank you.
26m 38s
Yeah. Thank you, Doug. I appreciate the questions. And let me start with the the first two that you asked and then then I'll ask Scott to jump in as it relates to the GeneSight question.
26m 49s
You know, our intention is and I think I've shared this before, that we have an opportunity to really simplify the narrative and get really more focused on the things that really accelerate growth. That are tied to the core of the company. Now, gonna take a little bit of time. You know, I think the better part of several months, to to do the work and gain that clarity. And and be able to to share that in a more definitive way. I mean, I can tell you in advance of that, again, is that remain absolutely resolute on the importance of oncology. It's the cornerstone of what is Myriad and really being able to serve that fuller continuum of cancer care all the way from screening through to therapy selection, ultimately MRD. Other things that we're adding in both organically and inorganically through partnerships such Potomac, we know that that remains at the heart of where Myriad goes. And while I appreciate, you know, the different parts of the business, including GeneSight and the resiliency it's showing in the face of the UnitedHealth headwinds there really are sacred cows. We're going to look beyond oncology. We're going to be looking at everything to really look at the best way to to prioritize the way that we we can focus our efforts and grow in in a predictable profitable way.
28m 9s
And so that's, you know, that's the timeline, and and that's a little bit of of of the process. Probably going into late q three, q four before we have the absolute clarity. And it doesn't mean we're not executing in the moment. We won't take opportunities to provide more clarity even as we go.
28m 26s
You know, as it relates to you know, maybe I'll take your your second question and talk a little bit about catalyst What should you look at for Myriad in terms of knowing that we're making progress on our new journey and our new chapter. I'll go back to the framework that I that I shared in my prepared comments. Right? So strategy one, we just addressed that I guess as part of your question. We are looking to gain that clarity which will provide us the focus Timeline on that again is over the next several months, late Q3 into Q4. In terms of team, it is about having the team that has the right combination of domain knowledge, execution ability, you know, the experience that we need. Again, very happy about Mark and his role and adding Brian to the team and others that we are in a very deliberate way that we're adding to the team. So there's more work to think about how in terms of organizational design, we will be more effective. But those are milestones to continue looking for. And third, I think it is about So what you look to in terms of catalyst, one of course that we're able to meet our updated financial guidance that you look at Polaris volume.
29m 40s
Didn't explicitly call that out in the prepared remarks, but it's relatively steady throughout the year. That for our hereditary cancer, which is an important part of our growth narrative that it returns to growth. Within within the year. And then I think we have an opportunity to reset and be consistent with being able to meet our own time lines that are important, particularly on these high value products that we intend to launch. Starting with first gene, which is again this combination NIPS carrier screening assay, able to bring that to market by the July. Then Prolaris with Prad This is the Potomac AI enabled test. First product for the time of biopsy by the end of twenty twenty five. Myrisk expanded panel by the end of twenty twenty five as well and MRD with the first assay. Available for clinical use in the first half of twenty twenty six. So those are some of the catalysts with that. Scott, let me turn it over to you to answer the question about GeneSight and the headwind.
30m 41s
Sure. Thanks, Sam. Doug, as we mentioned in our prepared remarks, there was a a $10,000,000 revenue headwind in the first quarter relating to the change in United's coverage of GeneSight. As a reminder, what we when the news was first developing around United's coverage, there were two components to the change. One component related to United's commercial policies, which was effective on January 1. That's what is driving that $10,000,000 headwind in Q1 There is an incremental amount that's much smaller that began in March. Which related to United's managed Medicaid plans at the full effect of which is not seen in the Q1 numbers yet. But generally what I would say is that that's $10,000,000 headwind that we saw in Q1 is in line with the overall estimates that we had given for the full year impact And of course, the full impact of that is reflected in our guidance.
31m 40s
Thank you.
31m 42s
One moment for our next question. Our next question comes from the line of Puneet Souda from Leerink Partners.
31m 51s
Yes. Hi, guys.
31m 55s
Maybe I'll continue with Gene's side.
31m 59s
Just given the focus here and the challenge you're seeing. I mean, since The United announcement, could you update if you have heard from other payers or policies with respect to the test? My question is that the guide is the guide contemplating only United? Are you expecting other payers to step away and not cover the test? I mean, I think you would agree that currently the market and the payers are under more pressure than ever before and they're looking for savings. Some areas of diagnostics might just give them that. I just wanna understand, what is in the guide and in terms of other payers, what are you contemplating? And then second part of my question is, with respect to the providers, the physicians that are prescribing this test, are you seeing any changes in the behavior in terms of the prescription patterns just because of United? And payers not covering? I'm just asking this because we're potentially maybe heading into a recessionary environment. And if that is the case, the patient pay might decline further.
33m 8s
Hey, Puneet, thank you for the questions. Scott, if you could take the first part of that, and then I think related to the providers and so forth, Mark, if you could take that part.
33m 17s
Sure. So the first part of the question related to coverage. And know you're asking primarily about GeneSight, but I think there was a little bit of the question that maybe had carryover around the environment for coverage and reimbursement for our other products. So I'll maybe make a directional comment on those as well. First with respect to GeneSight specifically, I'll reiterate what we had said when the news around United was first unfolding, which was that we had no reason to expect the United's coverage determination would have any impact on coverage for any other payer And what I would say is that in the months that have passed since then is that has proven out. We haven't seen any indication of a risk of coverage across the rest of the payer universe that covers United mean, that covers GeneSight. And in fact, more we have had a couple of interesting wins in terms of incremental coverage, including one on the commercial side for GeneSight. Now, of course, it's not at the same magnitude as United coverage, but it's consistent with our general theme that we've been talking about since the beginning of last year. Is generally we continue to see constructive opportunities to continue to build out the coverage universe for GeneSight.
34m 31s
That general theme also, of course, throughout all of last year and so far this year is also applicable to generally the rest of our product portfolio.
34m 39s
And mentioned this in my prepared comments that generally when you look at kind of underlying current period rates outside of the headwind items that we've specifically called out, we see a very favorable rate environment. We've been able to maintain the positive rate momentum that we had in 2024, And based on a number of rev cycle and payer mark initiatives, we're optimistic that we'll be able to continue to make more progress in 2025.
35m 9s
Mark?
35m 10s
To answer the second part of the question, we are not seeing any meaningful change in our providers. If anything, I think the market, on uncertainty unfortunately continues to drive the need for a test like GeneSight because the mental illness is not going away anytime soon. I would say, as we saw with our as we mentioned in our remarks, we did reduce spend in Q1. Because of the UHC decision. And so that did have an impact and it will have an impact going the year. But as far as providers reacting to any payer coverage, we're not seeing that. But that said, we need to be really mindful that we're focusing on driving growth that is profitable. And not driving growth that's going to continue to increase zero pays.
36m 3s
Okay.
36m 4s
Thank you.
36m 5s
And then if I could just follow-up with Sam. Sam, as you have been at Myriad for some time and now obviously in the head role, can you elaborate a little bit as to how you think about this portfolio? Is this the right portfolio? I think that's been a major question for Myriad for a very long time. The tests that have been added have some challenges or the other, you know, every year we run into them either if hereditary or gene side. Can you elaborate on the portfolio and if there's room for divestiture here?
36m 46s
Thank you again Puneet for the question. I mean, similar. Doug was, I think, going in that direction too. I think that again, while there'll be some time to be taken, think a prudent thing to do. While doing it quickly. Make sure we do the thoroughness in looking at our strategy, to to understand and make decisions. What I can tell you again is we are absolutely resolute on oncology, right? And there too, we'll provide more clarity. Though we had underperformance compared to what we'd expected or wanted in unaffected hereditary cancer. We think it's programmatic. It's more execution related, which we're working to fix. It's just a matter of how long that takes. As a reminder, hereditary cancer for is almost a $4,500,000,000 market that's growing at high single digits. We are the leaders there and there is a significant opportunity that remains, and it's for ours to go get. And it's just about the execution, which we can go into more. But, you know, beyond that, I think it's we're going to go through the rigor to really look at and say, you know, we are Myriad the way we are and how we got here, but know, what are the pieces going forward?
38m
So that really support our best ability to grow in a predictable, profitable way. Compete and win in the market. Maybe those sound like a lot of obvious words, but behind it is the conviction to really be thorough and make choices. To help support our go forward. So with each just a little bit of, I appreciate just a little bit of time for the management team and I to to work through that and and, you know, have some clarity for ourselves and more that we can share by Q4.
38m 30s
Okay. I appreciate it. Thanks for covering those.
38m 35s
You're welcome. Thank you.
38m 37s
Thank you. One moment for our next question. Our next question comes from the line of David West Westenberg from Piper Sandler. Hi. Thank you for taking the questions here. So just regarding the slower ramp on the unaffected pop or unaffected testing in in in hereditary cancer due to ER EMR integration. Sorry. Us on the sell side, we are us investors, you know, we we really don't know the, like, kind of the nuts and bolts and why this would kind of take multiple quarters to kind of integrate and what this kind of disruption looks like. So can you give us a flavor for know, just a little bit more details on why you're certain this is the problem, why you're certain you know, it's gonna take a couple of why it's gonna take a couple of quarters to fix and you know, what that business can grow at. And, you know, again, I'm looking at this this unaffected population, you know, volume or revenue's down 4%. Volumes were flat. So I just wanna make sure that that's just mix and not kind of lower payments or a lot more non no coverage there. I have a one short follow-up.
39m 50s
Hey Dave, thank you for the question. I'm glad you asked. It allows us to actually provide some detail which I think will be helpful for many others on the call. And by the way, the the two drivers, and I'll hand it over to Mark to really kind of go into a little bit more detail here. Along with the EMR, it's also just the time to the traction from our breast cancer risk assessment program. We've seen some early good results. It's the ability to scale that too. So Mark, provide some more.
40m 16s
Yeah, sure, Dave. Let me provide a little bit of clarity and try to give an example related to EMR. First, I want to thank our EMR teams, which has been a very cross functional group of folks within Myriad that have been actively working on this over the last eighteen months. And I would say there are some positives. When you think about our prenatal business or you think about the hereditary cancer business, on the affected side of the equation, a lot of the EMR integrations just have to do with the ability to order a Myriad test. Just simply go into Epic and press a button and to be able to order the test. What we see across all of our accounts, though, is from a workflow perspective, on the unaffected side, so patients who do not have cancer, it really starts with an ability to do a family history which is a series of asking a lot of different questions around relatives. I'm sure you've filled those out in the past. And ideally, is a is a feature that needs to be added into the EMR stream so that that process is not manual. Also, in many cases, when you think about an unaffected population, many cases, those appointments are being done virtually.
41m 24s
So the idea that also a feature built within the ENR would require pushing a button and having a kit shipped virtually. Secondarily, many of those patients require patient education. Once they get the results, it's not as clear, again, within the prenatal world or within the affected side, it is a very clear answer. On the unaffected side, what do they do now that they see a number that says that they have a higher risk? What are their options? What is that report telling them? And so in many cases, we need to make sure that it's either plugged into the Myriad genetic counselors or it's plugged into the account patient education materials.
42m
And so those workflows, what we've seen in working with our accounts, are challenge points. And so we've systematically identified those accounts We're going back. We're making sure that we're building on those features. The example that I called out in the prepared remarks is actually working with Epic to build a digital cancer risk assessment that it would be built into the Epic platform, which would not only help the accounts that we've already enrolled, but would also be a feature that we could utilize moving forward as well with new accounts that that we onboard. But again, that is going to take us some time because once we those solutions, we now need to sort of get back in the queue. With all those accounts so that those tech teams can also enable them on on their side. So hope that provided a little bit of clarity.
42m 47s
Yeah. Can can I just I'm not as Oh, go ahead. Sorry.
42m 51s
I think there was one other part of your question, was around the fact that volumes were largely flat, but revenue was down somewhat. And I'll just say that there has been no deterioration in terms of the underlying rate environment in terms of coverage or no pay or reimbursement cycle. For that category of testing. Overall, we continue to see encouraging developments. I positive momentum. There's some amount of adverse mix just in terms of payer mix and there's always going to be some ebb and flow to that. And then in the prior year period, you had some amount of favorability from change of estimates that did not favorably impact this year. But there's always going to be some amount of movement from that type of thing, and it is not a reflection on the health of the underlying rate environment.
43m 38s
Gotcha. No. Thank thank you very much. And and just I'll just ask my shorter follow-up then because did did give me a lot of time here. And and just in terms of Polaris, down 2%, what run rate were you at prior to the NCCN guidelines And what what's your best assessment of what the market growth would look like We're just kinda I'm just trying to get a sense of, you know, comfortability with the down being 2% being business as usual and then, you know, market growth rates So say when you stabilize it, you know, what that might look like is essentially what I'm trying to get at. And thank you very much for all the details.
44m 16s
Yeah. You're welcome, Dave. Maybe I'll start there. And we have been in a very competitive situation as you know with Decipher and Veracyte. And you know it's relatively stable so that our perspective on how how this year, how we expect it to be. But when we, you know, through the actions we are taking, by the way, we're not not standing still and just waiting for, the partnership with with Pathomix to develop our first AI enabled test, which will definitely put us in a better place. Along the along the way, we're also, you know, now making advances on getting some in level one evidence in place. The work now with film accelerates that by one year to one point years. In terms of commercial teams, we've added folks. We've actually prioritized, clarified the message. We're we're starting to see traction there. And before maybe I hand it over to Mark, I think that market we see as a low double digit growth market. At least, and that's the opportunity to resume and get back you know, competing and winning that share and actually part of the Potomac partnership allows us to bring a product to market and post RP where we don't even participate today.
45m 29s
It's a complete blue ocean, right? Because our Polaris solution today is you know, for the majority part it's for time of biopsy. It's a lot there, Mark. I'm not sure there's there is much to add there unless unless that didn't answer the question. So let me just ask.
45m 50s
I think they may be offline. Okay. Alright. K. Thank you. Yeah.
45m 53s
Thank you.
45m 54s
Thank you. One moment for our next question. Our next question comes from the line of Matt Sykes from Goldman Sachs.
46m 5s
Hey guys, thanks for taking the question. You got Will on for Matt here.
46m 8s
Just wanted to dig a little more into the cost savings side of the guide. Know you mentioned it would be on discretionary spending rather than the pipeline or commercial organization. But any more detail you can provide on what's being cut there would be super helpful.
46m 23s
You know, let me start. Thank you for the question. I'll hand to to Scott.
46m 29s
Yes, it's true, right? There are some big levers that were that we've already started to take, including incredibly careful, you know, any additions of headcount, really holding steady on that, being very deliberate. Of course, the traditional things on any travel entertainment, all those categories. And then there's, you know, other spend related to you know, programmatic things, be it research studies or, well, me, when we're actually doing market studies and other things that we may be using consultants for to really be deliberate and focus it elsewhere for growth. But Scott, please kind of take it from there.
47m 4s
Yeah, I'll just remind you that on the last call, we also talked about a reprioritization of spend. Because even our initial or previous guidance for OpEx was at a level that was kind of below the historical level OpEx investment. And what we were really pleased to be able to communicate on the last earnings call was the fact that we were able to reprioritize spend in order to continue to invest in the more strategic parts of the business. Which includes things like the EMR integrations that we have ongoing, which includes the product development efforts that we continue to prioritize. Along with incremental investments in the commercial organization? Or we continue to be comfortable that we can fund those strategic investments by being more efficient in other parts of the OpEx structure infrastructure in the way that Sam was describing.
47m 57s
That's helpful. And then then as a follow-up, on the RCM initiatives, you guys were early to optimizing those processes. And you've talked about the underlying rate environment being relatively stable today. But how much benefit is left for future improvement in RCM, and what are you guys doing to unlock those opportunities?
48m 20s
Yeah. Great question. Scott, I know there's more room and we're very actively working on that in a programmatic approach. So maybe you can provide some more. Yeah, so as a reminder, last year we talked about this throughout the year. We had come into 2024 with a no pay rate that was around 46%. And we finished 2024 with a no pay rate that was around 44% or 43%. And so that incremental improvement throughout 2024 really had a significant impact on our overall ASP environment coming into 2025. Really when you take a step back, amount of no pay, just to sheer volume of no pay that remains for us to go after is tremendous. And so we continue to see a very sizable opportunity there. We do continue to make investments in our rev cycle and payer markets organization in order to tap into more of that opportunity over time, including within 2020 calendar year 2025.
49m 19s
Thanks, guys. Appreciate the color.
49m 23s
Thank you. One moment for our next question. Our next question comes from the line of Tejas Saban from Morgan Stanley.
49m 33s
Hey, guys.
49m 35s
Good evening, and thanks for the time here.
49m 37s
So maybe I'll start with one on on the MRD side of things. Following the data you guys showed at AACR in Renal, what should we expect at ASCO this year And are you still on track to submit to multi coverage in breast by year end? And then last bit of that question, at ACR, increasing point of focus has been higher sensitivity. So I'm just curious as to your thoughts on on what is that threshold for landmark sensitivity that's needed for physicians to be comfortable in terms of using MRD to either escalate or deescalate treatment? Thank you for the question, Teja.
50m 20s
There was a number of things you had in there. So let me let me start. Let me try. To answer that. So yeah, we are pleased by the the study that was shared, the information that was shared by a collaborator, MD Anderson. Cancer Center. And this was about for those that might not be as familiar, about clear cell renal cell carcinoma. And really showing that our ultra sensitive MRD tests found that patients who tested negative three months after radiation avoided progression to more aggressive therapy for nearly two point five years longer than on average in patients who tested positive. The key is that we were able to help detect and determine in a clinical set of samples, very clearly something that otherwise wouldn't be detected by traditional imaging. That's very meaningful. One of the first real clinical examples of the power of our performance. Now in terms of I think you also asked about ASCO. We're excited, you know, at ASCO overall to have, you know, multiple seven submissions that were accepted related to Myriad Oncology products including MRD products. There will be a podium presentation there by a collaborator. Doctor. Hashimoto from NCC Japan.
51m 39s
He'll be talking about pan cancer molecular MRD, the assessment using our assay for personalized ctDNA panel. And it's actually going illustrate in a more broad set of cancers you know, the benefit of our ultra sensitive assay in real life samples if you will. Answer your question on I think maybe it's about sensitivity or what will really be important for clinicians that are choosing to use this product. Again, as a refresh, you know, for us in in MRD, you know, up point of differentiation. What's important is to focus in on cancers that are low shedding, meaning they have very low parts in the blood of actual tumor ctDNA. That can be detected just by nature of those cancers. Again, for us, breast, ovarian, renal, prostate, and a number of other cancers. And what we found from working with clinicians and the more than 15 different MRD studies that are underway and all the dialogue that we've had, that being able to detect consistently in a reproducible way down to many parts, down to two to five parts per million. Will really make a difference for these low shedding cancers. So again, clinical studies that are underway collectively, we'll be looking at 4,000 patients either receiving or we'll receive our precise MRD test and together that's going to generate more than 30,000 time points of data.
53m 16s
So I hope I I hope I answered your questions.
53m 20s
Got it. You did. So thank you. And one one follow-up, actually. So at a high level, Sam, I know it's it's early days, but where do you see room for changes in strategy or perhaps even you know, your your sort of guidance or expectations management philosophy, you know, relative Paul's tenure? Is it essentially sort of like going to be more or less a similar approach? I know you laid out sort of the three parts. You know, to how you're thinking about it. But any any kinda, like, initial sort of, you know, thoughts on that would be great. And then just to clean up on on GeneSight, I'm just trying to get a sense of I guess, the your GeneSight performance in the quarter came in, you know, light versus where we were certainly versus I think where most treat models were. And I'm just trying to, like, parse out sort of what exactly drove the weakness because I know you had contemplated weakness in your initial guide from sort of the peer issues, but trying to get get a sense of is it on the volume side? Was it something else? Any color would be great.
54m 21s
Thank you.
54m 23s
No, I appreciate the question. Let me start with your first question here. On maybe a little bit of what this next chapter of Myriad is gonna look like, and then I'll mark if you don't mind answering a little bit more on Gene's side, a little bit more color there. Listen Tejas, what I can tell you is to get a sense of who I am and what this chapter is gonna look like, I think you could look at my experiences with the last two companies I've I've worked at. That includes, you know, my my fundamental belief that you know, both for the inside, first and foremost, me meaning in the company to to execute with excellence, to really be able to meet our targets consistently, Simplification matters, being very clear on the critical few, what we're working on, how they all tie together, and really having that clarity, including, like, you know, already on this call. You know, one of our colleagues said this is just there's always something. There's so many different parts. So I think we have the opportunity to get clearer and crisper on what Myriad is all about, and and you should expect to see that in in the coming quarters and and years as part of Myriad.
55m 26s
The and the other thing I would add too is I've just grown up with the training and the philosophy of you know, we very important part, a lot operating business like in life is being able to do what you say you're gonna do. So, you know, setting our expectations and being able to meet those and meeting our own timelines for our sake, for the sake of our customers, the market. And for those investors that follow us. Those are things that we take extremely seriously. And it's part of, you know, becoming a world class business in in this next chapter of Myriad. So, Mark, could you take the, GeneSight question, please? Yeah. Let me add a little of color. I think as we've stated before, GeneSight is a very market sensitive environment just because of the low awareness level related pharmacogenomics That said, because of the UHC hit to our revenues, we did have to make some difficult decisions around lowering the investment. Within GeneSight. And unfortunately, the timing of us being able to respond to that actually did take place in the beginning of the first quarter. So due to that lowering of the having an impact as well as just the disruption, that is why we had lower than expected volumes within first quarter.
56m 36s
But there wasn't anything about the fundamental business as we talked about before, there isn't any change in our provider behaviors either. Moving forward. But as we did call out, we want to make sure that we're very we do proper diligence moving forward and that we're focused on profitable growth. Because, as we've called out before, GeneSight does have a high zero pay rate, and so we want to make sure that we're targeting our sales organizations and our market efforts to the right to the right providers and the right payers.
57m 5s
Got it. Super. Thanks, guys. Appreciate it.
57m 10s
For your questions.
57m 12s
Thank you. One moment for our next question.
57m 15s
Our next question comes from the line of Sung Ji Nam from Scotiabank. Hi, thanks for taking the question.
57m 24s
I have a question on Polaris, and it's a two parter, so I'll I'll just count them as two questions. Just kinda curious, you know, what do you think are the biggest perceptions that are out there amongst the customer base with regards to the NCCN guidelines.
57m 41s
You know, are are you having success in terms of having discussions with the customers and kind of clarifying kinda what you believe are the misperceptions And then just curious, you know, obviously, you're very excited about the PIPOMIX partnership. But how is that resonating, you know, with the base currently? I I don't know if there are any early discussions underway. Thank you.
58m 6s
Yeah. I appreciate the questions, Mark. Why don't you go ahead and start? I can complement as needed. Why don't I take the first part, and then maybe I'll pass it back to Sam on a second. But related to the first part, yes, we've met with our top providers over the over the quarter. There was a lot of confusion around the NCCN guidelines because I think, as we've called out before, of the 67 different cancer guidelines that NCCN puts out, Prostate is the only one that has the mention of this Simon level one evidence. And although it does have its merits, it is relatively new. Again, it is it is only one of 67 guidelines that actually has it included. So there was a lot of confusion around the wording. And so we did have to spend time during the first quarter correcting any confusion that any providers had. I think the good news is, for the most part, we have that behind us. Providers do understand what the guidelines say. They're also advocating to work with the NCCN writers to see if they can get that language clarified. We don't expect that clarity to happen in 2025, but we hope that the recommendations take place going into 2026.
59m 17s
So with that confusion behind us, we're able to focus on the merits of our test. And we do have the highest clinical utility evidence at time of biopsy. And then as Sam mentioned, there is a lot of excitement even now as we start talking about combining Prolaris with Pathomix AI technology. So on that, I'll turn it back over to Sam. Yeah, just to add a little bit into answering the second question that you had.
59m 42s
Hi.
59m 42s
We're finding, you know, real good level of interest and anticipation for our combined test. Part of it, I think quite frankly, there was some concern of our level of commitment to prostate cancer. And the partnership has helped reaffirm our commitment long term to prostate cancer and a pipeline now, both that's going to be there starting with a time of biopsy then post RP. So the other thing, our Fotomic colleagues have a great network. This part of why we did our diligence and we chose them in prostate cancer. Significant number of thought leaders from the space that are leaders in key academic medical centers related to prostate cancer. We actually get the combined benefit of what both Myriad brings and Pathomic brings. To start building a new narrative of what our combined test can be able to do to really serve patients.
1h 46s
Thank you.
1h 49s
You.
1h 50s
One moment for our next question. Our next question comes from the line of Andrew Cooper from Raymond James.
1h 59s
Hey, everybody.
1h 1m
Thanks for the time. A lot's already asked, so maybe I'll just try one more time on on the GeneSight piece. It sounds like the impact the change here isn't anything with United as much as it is your sort of reprioritization of some of the Salesforce. So is that correct? And then can you just frame for us the actual kind of dollars and cents impact of that 35,000,000 guidance reduction coming from that. And then I'll have a follow-up from there.
1h 1m 27s
Yeah. No. I appreciate the question. So Scott, do you do you wanna take the the question?
1h 1m 32s
Yeah. So with respect to the first part, I think you're thinking about it the right way. So there's two elements to the GeneSight narrative right now. There's the the the headline ASP impact of the change in United policy, landed it was an impact of ten million for the quarter and that's in line with what we had anticipated and what has been incorporated into our previous guidance. What is different in terms of our view on GeneSight right now is the reduced volume expectation. And that is a significant part of the $35,000,000 reduction in our 2025 revenue guide. We're not going to break out the individual components, but generally what I'll tell you is that GeneSight volume view the evolving GeneSight volume view, and the performance to slower ramp in terms of our unaffected hereditary cancer testing volume. Are the two major contributors to that $35,000,000 detriment to our revenue guide.
1h 2m 32s
Okay.
1h 2m 33s
Helpful. And then maybe just on a positive note, you know, first team launch, you you put a pretty firm date on here by July, I think you said. So maybe, Sam, for you, you know, you talked about the kind of credibility on launch timelines and making sure you're on track. What have you learned thus far and and kind of how do we think about this first team launch and what it might inform about how you approach launches know, still to come, as we move through the next few years?
1h 3m 5s
Yeah. That's a great question. And I think it it ties to, you know, in my framework, the the pillar on on execution, moving towards execution excellence. I think Myriad has long been, continues to be a company of great science, and great intentions and great colleagues. But really focusing on, you know, getting in very deliberate way better on product development all the way from planning a product defining it, developing it, and bringing it to market. You know, to mature that in a way that, you know, a number of other companies have, including where I've clearly been, and a number of my colleagues around the table have been, that's the opportunity. That's one of the big opportunities for us to get better. And I think it will drive more efficiency. It drive on the inside. And most importantly, it will now enable us to predictably bring products to market on the time. First gene, this is it's been delayed as you all, as you know. It'll be the beginning and it's going to be a little bit of an iterative process but there are, you know, specific things in a programmatic, in a educational way, and bringing in also colleagues who have done this, and who understand how to guide an organization is is part of the the deliberate way we're gonna get a lot better, in a hurry on our timelines.
1h 4m 34s
Great. I'll stop there.
1h 4m 35s
Thank you. You're welcome.
1h 4m 38s
Thank you. One moment for our next question. Our next question comes from the line of Tycho from Jefferies.
1h 4m 49s
Hey, Scott.
1h 4m 51s
One for you just on on kinda liquidity. You mentioned it's gonna be to meet operating requirements through the end of the year. Can you just where do you stand relative to the fixed charge ratio requirement under the ABL? And much cash do you need to run the business day to day?
1h 5m 7s
So we are still above the fixed charge coverage ratio. In terms of the ABL covenant requirements. And then in terms of day to day, one of the advantages of the restructuring that we did last year is we significantly significantly streamlined the working capital requirements of the business. And so I would say, I don't think we're going to commit to a number that we need to run the business. But it's very modest relative to historical requirements. And I'll just emphasize what I said in the prepared comments, which is that we have sufficient liquidity to meet our projected needs for 2025.
1h 5m 49s
Okay. And then follow-up is just on guidance, two things. One, are you determining assuming kind of further pricing pressure you know, try anything kinda tied to prior, you know, catch up payments that you've flagged this quarter? And then are you saying anything about the LRP? I mean, it wasn't that long ago at JPMorgan. You did kind of lay out double digit revenue growth, 70% margins. What do you kind thinking about the LRP at this point?
1h 6m 16s
Maybe, Scott, you start with the first one, and I could talk about the LRP after that.
1h 6m 20s
Yeah, and I think there may have been some confusion over some of drivers of ASP. But overall, we're not anticipating any we're not experiencing nor are we anticipating any kind of incremental headwind in our rate environment. Again, underlying rate remain healthy. The year over year headwind that we have first of all, related to GeneSight United, which was obviously known, And then also in Q1 of last year, we had some favorability from out of period favorability that did not repeat in Q1 of this year. And so it created a year over year headwind, but it wasn't representative of any negative development this year. So we continue to be optimistic about the rate environment, and that's reflected in our full year guide.
1h 7m 4s
Yeah, quickly on the LRP, though we're going to to get more clear and do the work during our strategy refresh as I've already alluded to before. Based on our performance and our guidance that we just spoke about, the attractive markets again that we're participating in are our capabilities, our access into those markets, and the new products, which we've talked a little bit about that we know are coming. Timing of those over a multi three year plus period At this point, I feel confident in the high single digit to low double digit.
1h 7m 38s
We'll refine that more or get clear on that as we go through our strategy refresh work over the next few months. Months.
1h 7m 46s
Thanks.
1h 7m 48s
Thank you. One moment for our next question.
1h 7m 51s
Our next question comes from the line of Lou Li from UBS.
1h 7m 58s
Great. Thank you for taking my question. Just very quick on the hereditary cancer cell appreciate that you're giving out a lot of example in terms of, like, how the EMR, integration. I wonder how many you accounts are already being converted or meaning, like, adding the feature. The reason I'm asking is just, like, how do you actually track, like, the the develop like, the timeline of the ramp? Is there any risk that it can get, like, pushed pushed out, like, any longer? What are the risks to to the guidance? Thank you.
1h 8m 32s
Yeah. No. I appreciate the question. You you know, at a high level before maybe, Mark, I I hand it to you. [indiscernible] As you know, we serve thousands of healthcare providers and customers, and a subset of those are for unaffected hereditary cancer, and that's where Mark is providing the guidance or excuse me, the detail about the workflow related matters that we're working through. But we've contemplated a lot of that puts and takes within within our guidance. So I'll just say that at a high level. But Mark, don't know what other color you might add.
1h 9m 9s
Yeah, I'm not sure I can give any more color because as Sam just mentioned, there literally thousands of providers. And as we stated, in Q4 last year alone, we integrated over 4,500 accounts. So I guess what I would say is that the EMR integrations account by account level, it is a it is material. Our overall unaffected hereditary cancer growth. And we are going account by account. I would say that some of the workflow challenges that I called out we can address this year, specifically in Q2, Q3. So we will be implementing some different workflow workflow solutions that will definitely have a positive impact. That said, across all of our account bases, it is going to be an ongoing effort. But we are expecting to see positive momentum coming from those EMR efforts as well as, as Sam mentioned, the hereditary breast cancer risk assessment programs that we've also had some positive results in Q1 as well. Hey, just one thing to add. This is an illustration of our intention to be even more you know, deliberate in our prioritization. You know, whereas and and it is important to continue integrating, you know, these customers, these providers onto their chosen EMRs.
1h 10m 23s
We are very explicitly now. We've had a number of working sessions to say, how do we solve for, first and foremost, for the, you know, the most important high volume customers for those workflow challenges that Mark alluded to? So that's a priority. And, you know, we will continue to add more EMR integrations, but even more so focused on ensuring that we provide customers what they need to be able to really order more tests. Have a seamless experience, and therefore help us increase our volume.
1h 10m 53s
Got it. Thank you. Thank you.
1h 10m 56s
One moment for our next question.
1h 10m 59s
Our next question comes from the line of Subbu Nambi from Guggenheim Securities.
1h 11m 7s
Hi. This is Ricky Levitas on for Subbu. Guggenheim. Thanks for taking our questions. We have a couple on women's health. So first, it looks like women's health ASPs were up, around 10% year over year in the quarter. How much of that was from NIPT and how much of it was from carrier screening? And then on carrier screening, at a conference in March, you said you were seeing some progress with commercial payers that were starting to move towards covering expanded carrier screening. Could you elaborate on that progress and how much ASC lift you think that you could see from this reimbursement ahead of ACOG guidelines inclusion? Then I have a follow-up.
1h 11m 42s
Appreciate the question, Scott.
1h 11m 45s
Yeah.
1h 11m 45s
So so, yes, the the overall organic underlying rate environment is very favorable for the prenatal side of the business. It's coming from both of the subcategories of testing that you were referencing. We also have some favorable mix that's impacting the ASP environment. We're not going to break down the individual contributions of each product, but just to say that we have positive momentum across the portfolio. And that's consistent with what we saw throughout 2024 as well. I think in terms of the incremental tailwinds that we've got, so yes, we had mentioned that we were seeing some incremental coverage wins in advance of any kind of guideline change and we expect to continue to see more of that. But don't think we're ready to quantify that yet.
1h 12m 37s
Understood. I'm not quantifying it yet. But then just one follow-up then on the guidelines inclusion. Do you have any updated expectations with respect to ACOG guidelines inclusion for expanded carrier screening? And if you're expecting that this year still or not? Thanks.
1h 12m 51s
You know, we continue to track and anticipate and be fully prepared for that inclusion. But unfortunately, we don't I don't think we have any specific intel that isn't already out there. So we we are ready and prepared. It will be a good guy when it happens.
1h 13m 12s
Thanks.
1h 13m 15s
Thank you. At this time, I would now like to turn the conference back over to Matt Scallow for closing remarks.
1h 13m 23s
Okay. Thanks, Gigi. And this concludes our earnings call. A replay will be available via webcast on our website for one week. Thank you again joining us this afternoon. We'll talk to you soon.
1h 13m 35s
This concludes today's conference call. Thank you for participating. You may now disconnect.
Key Insights
Q1 revenue was $196M, down 3% year-over-year and at the low end of the target range; declines were driven by underperformance in GeneSight and unaffected hereditary cancer tests, partially offset by strong prenatal (up 11%) and oncology MyRisk test volume (up 11%).
Adjusted 2025 financial guidance: annual revenue lowered by $35M to $807M–$830M, gross margin expected at 68.5%–69.5%, adjusted OpEx reduced by $25M to $555M–$565M, adjusted EPS between a loss of $0.02 and a gain of $0.02, and adjusted EBITDA of $19M–$27M.
GeneSight revenues declined 20% year-over-year due to UnitedHealthcare coverage changes and reduced commercial resources; a $10M Q1 headwind from UnitedHealthcare is in line with full-year expectations, with no indication of other payers dropping coverage.
EMR integration and workflow challenges are causing slower-than-expected ramp in unaffected hereditary cancer testing; management is addressing these issues account by account, expecting improvements over the coming quarters but has factored slower ramp into guidance.
Product pipeline updates: First Gene (combined carrier screening and NIPS assay) on track for launch by July 2024; precise MRD test launch expected in H1 2026; first AI-enabled Prolaris test for prostate cancer to launch by end of 2025; management is focused on execution excellence and strategic clarity, with oncology remaining the cornerstone of the business.
