Myriad Genetics Corporate Presentation - January 7, 2019 - Myriad Genetics, Inc.
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Myriad Genetics Corporate Presentation January 7, 2019
Forward Looking Statement
Some of the information presented here today may contain projections or
other forward-looking statements regarding future events or the future
financial performance of the Company. These statements are based on
management’s current expectations and the actual events or results may differ
materially and adversely from these expectations. We refer you to the documents
the Company files from time to time with the Securities and Exchange
Commission, specifically, the Company’s annual reports on Form 10-K, its
quarterly reports on Form 10-Q, and its current reports on Form 8-K. These
documents identify important risk factors that could cause the actual results to
differ materially from those contained in the Company’s projections or forward-
looking statements.
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comOur Vision
A trusted advisor
transforming patients’ lives worldwide
with pioneering molecular diagnostics
The global leader
in personalized medicine
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comMyriad Leads Personalized Medicine Industry
Unique Scale and Expertise Creates Sustainable Competitive Advantage
OVER OVER
27 1 4M ~3K 1K
years since company only profitable R&D tests performed; employees dedicated scientific publications
was founded in 1991 driven personalized unmatched reputation to the Myriad mission to date; extensive
medicine company for quality research capabilities
OVER
3 1 100K 143 >95%
expertise with all only personalized ordering physicians countries have of U.S. payers
three types of medicine company with since inception; deep ordered our are in-network
biomarkers (DNA, broad regulatory relationships products
RNA and proteins) experience
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comMyriad’s Strategy
Answering patients’ In 6 medical specialties
4 most pressing questions • Women’s Health
• Will I get a disease? • Neuroscience
• Do I have a disease? • Oncology
• Should I treat this disease? • Autoimmune
• How should I treat this disease? • Urology
• Dermatology
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comMost Attractive Product Pipeline in Diagnostic Industry
11 Products Addressing $30B of Global Market Potential
GLOBAL
PRODUCT KEY QUESTION ANSWERED DISTRIBUTION KEY RECENT DEVELOPMENT
TAM
Launch of riskScore™ - 4th epoch in
Will I get cancer? $5.0B
hereditary cancer testing
What drugs will work best for my GeneSight GUIDED study accepted for
$10.0B
depression? publication
Is my child at risk for a genetic
$4.0B 3x expansion in sales team in 3Q19
condition?
Demonstrated 3-5x better than any other
Is my RA under control? $3.0B
disease activity measure
New NCCN guidelines led to new
Do I have an aggressive form of
$1.5B coverage from commercial payers
prostate cancer?
covering over 24M lives
How aggressive is my breast >90% of commercial payers now cover the
$0.7B
cancer and how should I treat it? test
New CDx indication in metastatic breast
Am I a good candidate for a PARP
$5.0B cancer; Japanese approval in metastatic
inhibitor?
breast cancer
Eight commercial payer decisions and
Is this skin lesion melanoma? $0.8B
proposed Medicare LCD
Women’s Health
Neuroscience
Dermatology
Autoimmune
Oncology
Urology
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comCritical Success Factors to Achieve Strategic Goals
Build upon solid hereditary
cancer foundation
Grow new product volume
>10% 7 PRODUCTS
REVENUE
GROWTH
>$50M
Improve profitability with
STRATEGIC
Elevate 2020 GOALS
>10% >30%
INT’L
OPERATING
REVENUE
MARGIN
Expand reimbursement
coverage for new products
Increase RNA kit revenue
internationally
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comSolid Foundation in Hereditary Cancer Market
Growing Volume, Increasing TAM, and Stable Pricing
HEREDITARY CANCER REVENUE* Growing Volume
$150
• Market less than 15% penetrated
• 7% CAGR since FY13
• 7 sequential quarters with YoY growth
• New indications added 175,000 eligible patients per
$100
year in the U.S. and Japan
• riskScore driving deeper penetration
Stable Pricing Outlook
$50
• 4 consecutive quarters with stable pricing
• Long term contracts provide stable pricing into FY20
• UNH contract fixed until FY21
• Smaller price premium easily justifiable
$0
1Q18 2Q18 3Q18 4Q18 1Q19
* ASC606 Revenue
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comDiversification with Rapidly Expanding New Product Volume
>5x Volume Growth Over Last Five Years
1,200 New Product Diversification (including Prenatal)
• 76% of volume in FY18 vs. 1% in FY13
1,000 • 42% CAGR FY13-FY18
• Consistent double-digit organic new product
volume growth
Test Volume (in 000s)
800
• FY18 revenue growth:
600
GeneSight up 59%
Vectra DA up 31%
Prolaris up 73%
400 EndoPredict up 16%
• Counsyl acquisition (closed in FY19) further
200 diversifies the company into high-growth prenatal
market
0
FY13 FY18
Hereditary Cancer New Products Prenatal
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comNew Products Have Outstanding Growth Prospects
Markets Remain Highly Underpenetrated
VOLUME RELATIVE TO GLOBAL MARKET OPPORTUNITY
15% 6% 2% 1%
Hereditary Cancer
2% 5% 1%Increasing Payer Coverage Fuels Growth Potential
Current Reimbursed Addressable Market (RAM) >$1.6B
CURRENT U.S. COVERAGE RAM1 TAM2 Recent Payer Progress
• EndoPredict NCCN guidelines and payer
coverage decisions increase to 90%
$240M $260M
• NCCN guidelines for Prolaris increase Medicare
and commercial coverage to 55%
$330M $600M
• myPath Melanoma receives draft LCD from
Medicare which would increase coverage to 35%
$720M $3,000M
• Prenatal average risk receives positive tech
assessment from BCBS
$300M $5,000M
• Acceptance of GeneSight GUIDED study
• CareFirst covers GeneSight
$4M $450M
0% 25% 50% 75% 100%
1 Reimbursed Addressable Market
FY17 Coverage FY18 Added Coverage 2 Total Addressable Market
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comSteady International Growth Led by Kit Products
45% Five-year CAGR
INTERNATIONAL PRODUCT REVENUE Near-Term Growth Drivers
$20 • Approval for BRACAnalysis CDx in
$18 metastatic BC in Japan
$16 • Filed for Japanese regulatory approval for
hereditary cancer testing (>3M eligible
PRODUCT REVENUE (IN MIL.)
$14
patients)
$12
• Positive NICE recommendation for
$10 EndoPredict reimbursement in UK
$8 • Potential EndoPredict reimbursement
$6
decisions in Germany and Italy in CY20
$4
$2
$0
FY13 FY14 FY15 FY16 FY17 FY18
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comMeaningful Profitability Improvement Through Elevate 2020
Exceeded $50M Program Goal in Only Five Quarters
$160 24.0% 26%
Elevate 2020 Progress
24% • All business units except Dermatology now
$155 profitable
ADJUSTED OPERATING MARGIN*
22%
• Operating margins have increased 550 bp
TOTAL EXPENSES ($M)*
$150 18.5% since inception of the program
20%
• Vectra and International laboratory moves
$145 18% completed at the end of the fiscal 2Q19
16%
$140
14%
$135
12%
$130 10%
4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
Expenses Adj. OM
* Excludes Counsyl
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comFinancial Overview ©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com
Substantial Opportunity for Earnings Growth
GeneSight and Prenatal Opportunities Support Tripling of Adjusted EPS
Other
Prenatal
Multiple material growth drivers
Opportunity to
triple adjusted EPS GeneSight
Adjusted EPS run rate Q1FY19
$2.08 (excludes Counsyl – Accretive by
4Q19 due to cost synergies)
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comGeneSight Opportunity for Transformational Growth
Reimbursement drives ASP Increase and Primary Care Launch more than Doubles Volume
INCREMENTAL REVENUE AND ADJUSTED EPS*
ASP Expansion Opportunity
GENESIGHT TEST VOLUME
• FY18 ASP ≈$400 per test
300K 500K 700K 900K
• GUIDED study accepted for publication
$400
$80 $160 $200
$0 $0.68 $1.35 $1.69 • Optum Health study demonstrated >$6,000 per
test in cost savings
• 25% of commercial lives contracted at $2,000
GENESIGHT TEST ASP
$600
$60 $180 $300 $420
$0.51 $1.52 $2.53 $3.55 • 60% of commercial lives have received complete
dossier
$1,000
$180 $380 $580 $780 Volume Growth Opportunity
$1.52 $3.21 $4.90 $6.58
• >300,000 run rate growing at 28% YoY
• Primary care launch more than doubles market
$2,000
$480 $880 $1,280 $1,680 • U.S. market potential ≈3M tests per year
$4.05 $7.43 $10.81 $14.18
Incremental Revenue in millions * Assumes 65% revenue drop down
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comPrenatal Opportunity for Transformational Growth
Market Growth and Share Accelerates through Broader Reach and Guidelines
INCREMENTAL REVENUE AND ADJUSTED EPS*
Volume Growth Opportunity
MYRIAD MARKET SHARE
• Tripling sales reps Jan 2019
13% 15% 20% 25%
• ACOG endorsement of average risk coverage
$32 $113 $194 anticipated in CY19
8%
$0 $0.17 $0.59 $1.01
• ECS moving toward standard of care
PRENATAL MARKET 5-YEAR CAGR
• One-stop-shop portfolio available through game-
$20 $56 $144 $233
10%
changing app
$0.10 $0.29 $0.75 $1.21
ASP Expansion Opportunity
$42 $81 $178 $275 •
12%
$0.22 $0.42 $0.92 $1.43
Average risk coverage for NIPS
• Microdeletions for NIPS
• ECS coverage with commercial insurers and
$78 $122 $232 $343
15%
$0.40 $0.63 $1.21 $1.78
Medicaid
Incremental Revenue in millions * Assumes 40% revenue drop down
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comSubstantial Opportunity for Earnings Growth
GeneSight and Prenatal Opportunities Support Tripling of Adjusted EPS
Other
Prenatal
Multiple material growth drivers
Opportunity to
triple adjusted EPS GeneSight
Adjusted EPS run rate Q1FY19
$2.08 (excludes Counsyl – Accretive by
4Q19 due to cost synergies)
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comUses of Cash
Continued Opportunity to Deploy Capital to Maximize Shareholder Returns
USES OF CASH CURRENT FOCUS GOAL
Invest in new product reimbursement and
R&D 10% of revenue
differentiation studies
Assess opportunities that fit strategy
M&A Integration of Counsyl
with potential for near-term accretion
Debt Repayment $258M at end of 1Q19 Reduce with excess free cash flow
$50M ASR initiated in 2Q19; continue
Share Repurchase $124M authorized*
opportunistic purchases
*After completion of current $50M ASR
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comMyriad: The Investment Thesis
Personalized medicine is entering a hyper-growth
phase
Molecular diagnostics are the keystone to improving
patient outcomes and eliminating wasted spend
Myriad is the global leader in this market
Multiple catalysts can triple earnings
Compelling investment opportunity
©2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.comYou can also read
