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Mar 31, 2020
Myriad Genetics Q3 2020 Earnings Report
Myriad Genetics' financial performance declined due to the impact of the global pandemic and social distancing policies.
Key Takeaways
Myriad Genetics reported a decrease in total revenue by 24% compared to the same quarter last year, with a net loss of $115.2 million and a diluted EPS of ($1.55). The company experienced significant impact from the global pandemic, which led to unprecedented delays in elective testing and negatively impacted all aspects of the business.
Total third-quarter revenues were $164.0 million, a 24% decrease year-over-year.
Diluted EPS was ($1.55), and adjusted EPS was ($0.08).
The global pandemic significantly impacted elective procedure and testing demand, with volumes for some tests down 70 to 75 percent in April.
Myriad implemented cost-saving initiatives, including temporary furloughs and salary reductions, to mitigate financial losses.
Revenue by Segment
Forward Guidance
Myriad Genetics withdrew its annual financial guidance due to the business uncertainty created by the recent global COVID-19 pandemic.
Positive Outlook
- Potential for a final Medicare Local Coverage Determination (LCD) for GeneSight covering primary care.
- Initiatives implemented in laboratories to promote continuity of lab operations across all product lines.
- Amendment to credit facility provides relief from certain financial covenants through March 31, 2021.
- Received reimbursement and launched the BRACAnalysis® Diagnostic System in Japan.
- National Comprehensive Cancer Network updated their professional guidelines to include Prolaris across all major risk categories.
Challenges Ahead
- The global pandemic significantly impacted elective procedure and testing demand.
- Volumes for hereditary cancer, GeneSight®, and Vectra® tests were down approximately 70 to 75 percent in April 2020.
- Volumes for cancer tests such as Prolaris®, EndoPredict®, and myChoice® CDx were down 40 to 45 percent in April 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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