Myriad Genetics, Inc. (NASDAQ:MYGN) Q2 2023 Earnings Call Transcript

So we just continue every quarter to look at how do we need to position our products. With respect to MRD, really enthusiastic. We are processing samples as we speak for Memorial Sloan Kettering. We are close to announcing some other clinical validation studies. And so again, we’ll get into more detail. But as we’ve talked about in terms of our three year growth path, FirstGene MRD are not big contributors to that, that’s sort of on top of a 10 to 12 — 10 plus percent that we expect, but we’ll have a lot to talk about on Investor Day and generally, things are progressing.

Operator: [Operator Instructions] The next question comes from the line of Daniel [Sammarco] with TD Cowen.

Unidentified Analyst: Quick question on GeneSight, grew 22% this quarter, volume at 117,000. How should we think about performance for the remainder of the year? And should we be looking at any additional payer announcements in the near future? And if you can provide any time line on additional publications supporting the utility that would be great, too?

Paul Diaz: Related to GeneSight, I mean I think you’ve seen almost eight quarter, nine quarter double digit growth. And given the new providers that we’re adding every quarter, we expect to continue to see strong volume growth for GeneSight. Related to new clinical data we were expecting and we should hope to see some clinical data announced at the end of this year, so the second half that we’re coming up into. And we’re going to continue to see some new data coming out at the beginning of next year as well. So I don’t expect any slowdown related to the GeneSight franchise.

Mark Verratti: And to the second part of your question. We’ve had some preliminary readout from our study with Optum genomics on the clinical utility, which is really pointing towards GeneSight as a really effective tool to reduce psychiatric hospital days and emergency room visits. This is like the real world stuff that I like to talk about. Mark mentioned in his script the meta analysis work that all continues to be confirmatory. We’ve had a number of states, three specifically, now pick up the PLA codes and we are generating revenue from that expansion, that’s some fee for service Medicaid plans as well as some managed Medicaid plans, and we are making progress with some commercial payers. We had hoped to announce one here this quarter and it’s just taking a little bit more time.

But we do expect to be able to announce several additional commercial coverage before the end of the year and more coverages from different Medicaid plans as well. One of the things that we’re working really hard on has been a source of frustration is that many of the Medicare Advantage plans are not who are required to cover GenSight, because it’s a covered service are not paying. And that’s one of the things in our payer markets and web cycle teams that we are really getting much more assertive on when clearly a covered service by a Medicare Advantage plan is not being covered ostensibly because of prior off issues or other documentation issues. And so we do see upside in ASP for GeneSight in the back half of the year and more momentum for GeneSight ASP next year.

Operator: We have another question coming from the line of Jack Meehan with Nephron Research.

Jack Meehan: Bryan, I wanted to start with what’s your expectation for free cash burn in the second half of the year? And could you just call out some of the one-timers we might be looking for like the legal payment?

Bryan Riggsbee: Jack, we had a slide in the deck in a little section in the press release where we talk about where we show our liquidity as well as the payment coming out for the legal settlement and also our CapEx and cash flow expectations, trying to give a view as to kind of where we think we’ll end the year from a cash and availability on the credit line perspective. So it should answer your question in the release.