Myriad Genetics, Inc. (NASDAQ:MYGN) Q2 2023 Earnings Call Transcript

Paul Diaz: It’s pretty much a checkbook version, Jack, so it should be very clear. And the thing that I would underscore is the settlement as well as our ability to access other capital remains. We have a lot of financial flexibility. We have till Q4 to complete the settlement and a number of different levers, whether expanding the ABL or other things. But there is a very simple walk through on Slide 19 on the losses that kind of gets you there.

Jack Meehan: And based on the way things are trending with Gateway with SneakPeek, would you expect to make the $32 million milestone payment in 2024 there as well?

Paul Diaz: Yes. Unfortunately not, but — which, again, if they were hitting all their metrics, we would be happy to pay it. And they have an ability to get paid later. Right now, their volumes are flat. We’re starting to see some attachment rate to NIPS testing. We’re going to have some more announcements about acceleration around SneakPeek and some new channel opportunities there at the Investor Day. But that is not a payment we expect to make right now. They’ve been managing costs well. So it hasn’t been a big cash flow or EBITDA train. In fact, they’re under budget on the cash perspective but they are only flat year-over-year right now on volume. But we’re not even a year into it yet and we’re really proud of the integration and how it’s going. And I think we’ll get some more momentum here as the year progresses.

Jack Meehan: One last one. The FDA is about to release new rules as it pertains to LDTs coming back again. I was curious if you’ve had any recent discussions with them about GeneSight, how you think these rules might impact Myriad?

Paul Diaz: I’m not sure if I could be any clearer, but I will restate this. We have not had any exchanges or the FDA has made any inquiries about GeneSight since 2019, and we don’t expect the FDA to to have any inquiries about GeneSight. Most of the focus of the FDA and our associations are engaged with these discussions are principally focused at at-home testing for cover and other things that they view are high risk. And so we are not concerned nor do we have any new information since 2019 about concern from the FDA on GeneSight.

Operator: There are no further questions pending. I’ll turn the call back to Matt Scalo for closing remarks. Thank you.

Matt Scalo: Okay. This concludes our earnings call. A replay will be available via webcast on our Web site for one week. Thank you again for joining us this afternoon and see you at our investor event in September.

Operator: And all that does conclude the conference call for today. We thank you very much for your participation. You may now disconnect your lines.