On February 24, 2025, Myriad Genetics Inc (MYGN, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full-year 2024. The company, a leader in genetic testing and precision medicine, reported a full-year revenue of $838 million, marking an 11% increase year-over-year and achieving double-digit revenue growth for the second consecutive year.
Company Overview
Myriad Genetics is a molecular diagnostics company that provides testing services designed to assess an individual's risk of developing a disease. The firm produces MyRisk, a 48-gene panel capable of identifying the elevated risk of developing 11 types of cancer. Other diagnostic products include BRACAnalysis CDx, GeneSight, and Prequel. The company also offers biomarker discovery and companion diagnostic services to pharma and biotech companies.
Performance and Challenges
In the fourth quarter of 2024, Myriad Genetics reported revenue of $211 million, a 7% increase year-over-year, driven by strong demand for Pharmacogenomics (14%) and Prenatal (12%) testing. Despite this growth, the company faced a GAAP net loss of $43 million for the quarter and $127 million for the full year. The adjusted EBITDA for these periods was $11 million and $40 million, respectively. These results highlight the company's ongoing investment in research and development, which is crucial for maintaining its competitive edge in the Medical Diagnostics & Research industry.
Financial Achievements
Myriad Genetics' financial achievements are significant in the context of the Medical Diagnostics & Research industry, where innovation and technological advancements are key drivers of growth. The company's strategic collaboration with PATHOMIQ to integrate AI technology into its Oncology portfolio exemplifies its commitment to innovation. This partnership is expected to enhance Myriad's offerings in prostate cancer diagnostics, aligning with updated guidelines from the National Comprehensive Cancer Network (NCCN).
Key Financial Metrics
Myriad Genetics reported a GAAP gross margin of 71.7% for the fourth quarter, an increase of 300 basis points year-over-year, benefiting from improved revenue per test trends and greater laboratory efficiencies. The company's cash and cash equivalents stood at $102 million, with an additional $56 million available under its asset-based credit facility, providing a total liquidity of $158 million.
| Product Category | Q4 2024 Revenue (in millions) | Q4 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| Hereditary Cancer | $94.3 | $88.9 | 6% |
| Tumor Profiling | $30.8 | $32.1 | -4% |
| Prenatal | $44.9 | $40.0 | 12% |
| Pharmacogenomics | $40.6 | $35.6 | 14% |
Analysis and Future Outlook
Myriad Genetics' performance in 2024 underscores its resilience and adaptability in a competitive market. The company's focus on expanding its product offerings and strategic collaborations positions it well for future growth. However, challenges such as the discontinuation of coverage for multi-gene panel pharmacogenetic testing by UnitedHealthcare could impact future revenues. The company's ability to navigate these challenges while continuing to innovate will be crucial for sustaining its growth trajectory.
There is a lot for Myriad Genetics to be proud of in 2024. We generated 11% revenue growth over 2023, making this our second consecutive year of double-digit growth, and $40 million in adjusted EBITDA. This achievement is the result of the company's multi-year investment strategy along with our team’s hard work and focus on the needs of our patients and the healthcare providers who serve them," said Paul J. Diaz, President and CEO of Myriad Genetics.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Myriad Genetics Inc for further details.
