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Myriad Genetics Sees 10% Revenue Growth in Q1 2023

Myriad Genetics Sees 10% Revenue Growth in Q1 2023

The company reaffirms its profitability projection for Q4 2023

Myriad Genetics (NASDAQ:MYGN) produced $181.2 million in revenue for its first quarter, ended 31 March 2023, growth of 10% versus revenue of $164.6 million in the same quarter in 2022.

According to the company news release, revenue for the Salt Lake City-based firm broke out as follows across its four main product categories:

  1. Hereditary cancer testing accounted for 41.8% of Q1 revenue at $75.7 million, for YoY growth of 7%;
  2. Tumor profiling tests accounted for 20.6% of Q1 revenue at $37.3 million, for YoY growth of 15%;
  3. Prenatal tests accounted for 20.0% of Q1 revenue at $36.2 million, for YoY growth of 15%; while
  4. Pharmacogenomics tests accounted for 17.7% of Q1 revenue at $32.0 million, for YoY growth of 9%.

According to Myriad's President and CEO, Paul Diaz, the company "... had a strong start to 2023, with first quarter revenue growth of 10% year-over-year driven by solid execution and teamwork across our Oncology, Women's Health and Mental Health businesses and our enterprise support services team."

He added that Myriad "... remain(s) confident in our ability to achieve our goal of profitability by the fourth quarter and sustainable 10%+ annual organic growth ..."

Last but not least, I found two items particularly intriguing from the investor call / presentation about Myriad's Q1 2023 results announcement, specifically

  • The completion of Myriad's integration with Epic, one of the top two Electronic Medical Record applications in the healthcare marketplace, a platform used by over 600,000 provider organizations; and secondly,
  • The company's initial sales results of SneakPeak, a prenatal gender reveal product Myriad acquired when it purchased Gateway Genomics in November last year for $67.5 million in cash (with additional earnouts possible based upon results in 2023 and 2024).

Here's why I believe these two topics matter.

Why Epic Integration and SneakPeek Matter to Myriad

Any healthcare professional that uses Epic as their EMR of choice can now simply and easily place an order for a Myriad test / product directly within Epic. No making a special call or logging into a separate website (even if it is Myriad's).

Nope. Just click, click, and order.

That's a really big deal, and I'll be curious to see if Myriad shares info about the benefits of this integration in future presentations.

Secondly, although the company did not break-out any details, numbers-wise, in its Q1 2023 results news release, presentation, or investor call about what Myriad saw in the quarter from sales of SneakPeek, I believe this bears special attention in the periods ahead. Why?

Because, if my understanding is correct, SneakPeek represents Myriad's first ever true DTC (Direct-to-Consumer) product.

{NOTE: Clinicians and healthcare providers do have the option to offer SneakPeak prenatal gender tests today as well, as shown here. What's not clear to me, however, is whether SneakPeek qualifies for insurance coverage via a CPT code. Something to find out, I guess.}  

Continuing on ...

As noted in the 01 November 2022 news release announcing the acquisition of Gateway Genomics, SneakPeek had grown to become the No. 1 prenatal gender test sold on Amazon.com.

In the acquisition announcement noted above, Myriad stated that SneakPeak sales were expected to hit ~$20 million in 2022, with a 20% compounded growth rate expected over the next three-to-five years (either 2023-to-2025 or 2023-t0-2027).

Certainly not explosive growth, to be sure.

And obviously, the DTC world is a very different beast than the B2B marketplace, especially in healthcare / medicine.

Nevertheless, whether Myriad decides to focus its Go-to-Market Strategy for SneakPeek

  • Primarily on a B2B approach (as an add-on the its existing OB/GYN sales efforts), or
  • As a DTC, mass market endeavor, or
  • Perhaps even as a hybrid of the two,

will be really, really fascinating to track.

But for now, kudos to Team Myriad for a good quarter and for the prospect of more of the same in the months and years ahead ... including profitability in Q4 2024.

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