Thanks, Scott. I’m excited to be here with all of you today to talk about Myriad Genetics and our transformation journey, our point of departure and path forward. The company just delivered a strong quarter and I’m proud of the execution of the team.
We are already making early progress on our strategic transformation and growth plans, and I look forward to sharing some of those highlights with you today. I want to thank Bryan, Nicole, Mark and the entire management team for their hard work and dedication as we manage through another difficult quarter of COVID-19 and related operational challenges. I also want to acknowledge their support over the last 13 weeks to help me get up to speed. I came to Myriad Genetics because I believe in our mission to improve and transform lives by unlocking the power of genetics, and empowering patients with the information they need to control their own health and wellness. At the same time, we continue to provide healthcare professionals with clinical grade genetic insights to better diagnose, treat and prevent disease.
Our mission is more relevant than ever, particularly as we address the need to increase access to healthcare and reduce social economic and racial disparities in healthcare outcomes. To protect and advance that mission, we must adapt to the realities of our market. We must become more customer oriented and less complex, more outward facing and collaborative to better serve the patients and physicians who rely on us.
We have started a three-phase transformation process of resetting our operational and financial base, refocusing our business and working hard to grow.
Before we go into more detail, I want to take a second to recognize and thank our 2,700 dedicated Myriad teammates across the company; to our lab personnel working onsite to deliver timely test results to our people in the field and across our businesses who are teaming up to find innovative ways to serve our customers and keep our operations running smoothly during these challenging times. I’m incredibly thankful for all of your efforts.
As we look across healthcare, we see significant growth opportunities, patient populations with pressing needs and strong demand for innovation, solutions and services in women’s health, oncology and mental health. Healthcare spending in these areas is significant, and there are efficiencies to be gained through new partnerships and collaborations and leveraging technology. And we see the patients, providers, payers, and health systems are looking to apply the power of precision medicine to better achieve better outcomes at a lower cost. After several months with Myriad Genetics leadership team, I’m confident that we can position to expand our leadership in genetics, molecular diagnostics and precision medicine.
We have a large and growing U.S. market opportunity. Personalized genetic data and virtual consumer trends are converging to change traditional models of care. And the economics of molecular diagnostics supports sustainable long-term growth and profitability.
We have many opportunities to elevate our products to their full potential. Myriad performs about a million tests a year today, and we have the opportunity to grow this number meaningfully by improving our commercial capabilities and creating a better customer experience, so we can bring the health benefits of our products to more people than ever before.
We have a respected portfolio and internationally recognized scientific know-how, but we do need to reduce complexity and costs and be more focused on execution and operational excellence.
We are now the start of a three-phase transformation journey. Phase 1 is underway as we reset our base, continue the COVID recovery, prioritize product innovation, bring operating expenses in line with revenue, deploy new commercial models and reduce complexity and costs. In Phase 2 after completing our strategic operating reviews and launching our transformation plan, we will refocus the organization around key growth initiatives and enhance our reimbursement and revenue cycle capabilities to improve our financial performance and increase shareholder value. In Phase 3, with a stronger foundation of financial commercial, operational and technological capabilities, we will work to accelerate growth as we invest in new innovation, research and build commercial tools to support new products and begin to consider M&A.
As part of our transformation plan this afternoon, we announced that we are exploring strategic alternatives for the Myriad RBM business unit, which conducts contract research services for the pharmacological industry, and our dermatology business unit, which markets the myPath diagnostic test.
While we strongly believe in the growth opportunity for these businesses, they are not core to our long-term strategy and have minimal synergies with the rest of our portfolio, and a part of the internal complexity we’re trying to work through. We’ve had multiple inbounds indications of interest on both businesses from strategic and financial buyers, and we are confident in our ability to divest them evaluations we believe will be attractive. I’d now like to discuss the four-point roadmap we’re following to guide the execution of our strategy. It starts with putting patients and customers first and all we do. In my experience, when organizations prioritize the customers and people they serve above all else, growth and positive business results will inevitably follow.
Second, we will build customer-centric, technology-enabled commercial capabilities that convey our value proposition, allow us to play offense in positioning, ramp up consumer and digital marketing, and support frontline teammates with enhanced virtual sales tools.
Third, we will elevate our existing products to their full potential by increasing awareness, access and differentiation, while we reinforce the clinical utility and maximize cross-selling and synergies across the portfolio. Fourth, we will focus on creating new avenues for growth, organically developed, and potentially acquire products through new capabilities as a direct-to-consumer model, partnerships and look to unlock our extensive data sets. With that background in mind, let me just share a few examples of things we are driving to change and using IT to simplify the way we do business with patients and interact with physicians.
We are enhancing our customer interfaces like our Myriad Complete suite of services that guide patients through the genetic process and help physicians optimize care plans. At the same time, we are streamlining customer interactions to ensure a more seamless experience. A new product portal for the myRisk Hereditary Cancer test facilitates better patient education, easier ordering, pre-authorization and results delivery. In oncology and women’s health, we just launched the ability to provide patients with timely, transparent, out of pocket cost estimates, as well as automated support on where to get a blood draw or how to arrange an at home visit. In telehealth, virtual care networks are moving into the mainstream and becoming increasingly important, especially in areas like telepsychiatry. We signed our first telehealth collaboration this quarter, and now 30% of our GeneSight samples ordered by providers have sample kits directly shipped to the patients.
We expect this metric to increase as we expand our direct-to-patient marketing. Similarly, myRisk sample collection and testing kits are now being sent directly to patient’s homes or to doctor’s offices with a click of a simple online request.
We are expanding patient education with the online myGeneHistory questionnaire that compares personalized family cancer histories with national guidelines to determine if patients qualify for testing. This IA driven tool is integrated with EMRs and offers personalized workflow. In mental health we are working to improve the GeneSight order experience and workflow scenarios are now simplified reducing friction between Medicare and non-Medicare orders and ensuring compliance with commercial policies.
As a result, we are seeing a 30% reduction in time order across all order types.
Another way we are driving patient engagement and demand is by strengthening our online presence in digital marketing. We recently completed a refresh of the myriad corporate website to improve the visitor experience and smooth the path to our product sites and tools like the hereditary cancer quiz. By way of example, nearly 1 million patients showed interest in the hereditary cancer quiz last fiscal year, but less than 3% of our patients who take the quiz and meet medical criteria, ended up getting a test.
So there was a significant opportunity to try to leap conversion from low-single-digit to double-digit rates.
We have customer relationship management and funnel management initiatives underway to capture this opportunity and help more patients through the testing they need.
Another area we have identified to optimize revenue is to reduce zero payments on tests across our portfolio. Many of our tests we perform today received zero reimbursement from commercial payers or patients. We see ways to reduce this number over time, and we have already undertaken several initiatives with our commercial leaders who are focused on this opportunity. This includes future launches, internally developed pre-authorization software, new AI tools for prioritizing claims for appeal and introducing ease of use features to product portals to streamline the ordering process.
As we complete our strategic reviews, we are gaining external feedback from our third-party consultants as well, including Bain and Avalere, whose research initiatives are providing valuable customer insights on our product positioning, pricing, brand equity, service and satisfaction levels. These insights are being leveraged in the development of our new commercial plans.
We’re working to develop broad consensus with our board and management team on our path forward to reinforce Myriad’s position as a leader in genetics and precision medicine. And I’m confident in our ability to better execute and look forward to sharing more with the investment community in March of next year at our planned investor events.
Now I’d like to turn the call over to Bryan to discuss our financial results for the quarter.