Myriad Genetics, Inc. (NASDAQ:MYGN) Q4 2022 Earnings Call Transcript

Jack Meehan: Superb. Okay. And then, wanted to ask about the implementation of the PLA code this year. So Medicare seems relatively straightforward in terms of the reimbursement rate. Was curious on the non-Medicare side, whether they’re you’ve seen any impact on collections there where you might have been previously under some other method?

Paul Diaz: Zero impact there. We think it’s all supportive of our payer market strategy. And so far good dialogue with United and other payers across all of our product portfolio. And so, as we said at the beginning of the call, we’ve got really good visibility within that 3% to 5% range on ASP. And as we’ve talked about today, increasing confidence in our 10% top line growth number, and hopefully better going into 24%, but certainly feel more confident about that. After a little bit of a bumpy Q3, we’re right back on track and January and February, point to further evidence of that. And as Bryan said, confident, we can reach profitability and operating free cash flow by Q4.

Jack Meehan: Got it. And Bryan, is there any color you can share in the forecast for CapEx this year? Thank you.

Bryan Riggsbee : Yes. Thanks, Jack. Yes, I think the only thing I would add is just that, obviously, you’ve seen capital increase in the back part of last year as we’ve been building out our laps of the future. We expect to take possession of those laboratories around the middle part of the year. So we would expect for those to be completed substantially in 2023 and for 2024 to return to more of a normalized sort capital type year.

Paul Diaz: Yes. And for €“ to add to that part of the savings, as we think about 2024 and 2025, rents coming down. So, as we move out of more expensive space and into more cost effective, more efficient space, where we can automate. And it’s going to take a lot of work to maintain these 70% gross margins, but that’s where the automation and the process improvement will come from.

Operator: And your next question comes from the line of Mason Carrico with Stephens Incorporated. Your line is open

Unidentified Analyst: Hey, guys. This is Jacob on for Mason. Thanks for taking question. I’ll just ask a quick one here and apologize if it was covered earlier in the call. I’ve been hopping around a few calls at night. So looking at that profit, looking at this year and into 2024, how should we think about the proportion of growth in GeneSight revenue coming from volume growth versus ASP moving higher from expanding coverage or reducing the no pay rate?

Paul Diaz: Yes, that’s a great question. Again, we expect to continue to grow at 20% on the volume side. And we do expect ASP improvement as we improve coverage over the course of the year and again, lot of more updates there. But we’re absolutely making progress with a couple of payers that we hope to be talking about here soon. But we haven’t really broken out. But maybe in a couple of quarters, we’ll be able to give you some more details around that. But ASP is stable, volume is growing and it’s dropping to the bottom line. That lab is incredibly efficient. DaVita and the team there do a great job. Our COGS there are really tight and we’re trying to get more productivity on the sales force. So our customer acquisition cost is coming down with more inside sales and the digital conversions that we’re getting that Mark talked about.