Myriad Genetics, Inc. (NASDAQ:MYGN) Q3 2023 Earnings Call Transcript

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Unidentified Analyst : Sure. Great. No, that makes sense. And for GeneSight specifically, would you mind walking us through what the 2023 and — 2023’s guide is contemplating in terms of whether that’s sustained volume growth versus ASP improvements?

Paul Diaz : We don’t break that out separately. We’ve sort of — and we’ve done it this year. GeneSight has grown 24% year-to-date. We have said that we think we continue to grow GeneSight at 20%. And we’ve got — that’s one of our biggest no-pay issues, and so we continue to work. And I just mentioned, incrementally see opportunities to reduce no pace for GeneSight and increase the ASP for GeneSight. So again, a lot of progress particularly in this quarter with respect to that.

Operator: [Operator Instructions] Your next question comes from the line of Derik De Bruin with Bank of America.

Wolf Chanoff: This is Wolf Chanoff on for Derik. Congrats on the quarter. I just wanted to start by digging into some of the top line drivers here. As you guys talked about a fair amount of the beat was due to period adjustments. So would was just looking for some clarity on how we should be thinking about the impact of adjustments going forward and kind of a normalized rate, given the dynamics that you’ve laid out that you’re currently experiencing? And I have a follow-up.

Paul Diaz : Can I just underscore that when we’ve given you the 14% and 15% revenue numbers, it’s excluding the out-of-period collections. We’ve gone to great lengths to separate that out. It was actually a 23% increase when you look at the outer collections. And year-to-date, again, you’re going to have some quarterly volatility, what happened with the third-party payers last quarter. But that the revenue trends and the stability of ASP are coming through the P&L. And so anyway, I hope that’s responsive, but nothing else in terms of the pieces there. But Bryan, would you add anything?

Bryan Riggsbee : Yes. I would just say that if you exclude the out-of-period change in estimate and you get more like a 185 number, that will be to the adjusted number, I think that’s still a fair amount ahead of maturation, which was 179 to 180 range. And really, what we’ve tried to do over the course of the year is to really get the out of period to be an immaterial amount. However, we did have the issue with a payer, administrative claims processing agent last quarter that we talked about on our last call, and we were able to significantly recover that — a lot of that this quarter. So that’s a dynamic that’s a little bit unique to the current quarter. But I would think — I would say, all in all, even if you exclude that, it’s still a fair amount ahead of kind of where our expectation was.

Paul Diaz : And which is why we try to point everyone’s attention understanding there’s been some quarterly volatility that year-to-date, it’s all ahead of our long-term growth rates. So anyway.

Wolf Chanoff: Yes. And that was certainly clear in the PR. And then you also — you guys also did a great job of kind of laying out the — what’s at hand here during the prepared remark itself. I was wondering if you could give us a little bit more color on the puts and takes around the options for how you could pay for the litigation expenses, both in the near term and going forward? Just what would drive you towards different mechanisms there?

Paul Diaz : Sure. Bryan…

Bryan Riggsbee : Yes, I would just say that we — as we highlighted on the last quarterly call and on this call and cash and liquidity estimate that we gave at the Investor Day. So we feel really good about the momentum of the business and where we are from reaching an adjusted cash flow — adjusted positive operating cash flow perspective in Q4, and we believe that gives us lots of flexibility, not only from an operating standpoint, but also they had negotiated the ability to settle the shareholders suit either cash or shares. And so we’re not at the point where we have to make that determination yet. But when we do, we’ll consider where we — what our future liquidity looks like, where we are from a capital standpoint and we’ll make the best call at that time.

Operator: And there are no further questions. I’ll turn the call back to Matt Scalo for closing remarks. Thank you very much.

Matt Scalo: Okay. Thanks, Dave. This concludes our earnings call. A replay will be available via webcast on our website for one week. Thank you again for joining us this afternoon, and have a good night.

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