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MYGN Myriad Genetics

Participants
Nathan Smith Senior Vice President, Investor Relations
Paul Diaz President & Chief Executive Officer
Bryan Riggsbee Chief Financial Officer
Sung Ji Nam BTIG
Puneet Souda SVB Leerink
Matt Sykes Goldman Sachs
Jack Meehan Nephron Research
Rachel Olson JPMorgan
Call transcript
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Operator

Greetings, and welcome to the Myriad Genetics Third Quarter 2021 Financial Earnings Call.

During the presentation all participants will be in a listen-only mode. Afterwards we’ll conduct a question-and-answer session. [Operator Instructions] As a reminder this conference is being recorded Tuesday, November 2, 2021. I would now like to turn the conference over to Nathan Smith, Senior Vice President, Investor Relations. ahead. go Please

Nathan Smith

you Myriad Thank afternoon welcome and All third Kevin. quarter the Genetics XXXX to right. Good earnings call.

we after host During released call, will financial the the results today, and question-and-answer which a will we session. review we

this President Our on and and of our at Investor Form on Smith, Nathan morning investor.myriad.com. quarterly Relations found was I'm be the X-K release website earnings furnished can Senior Treasury. Vice

Riggsbee, investor.myriad.com today me Executive the Paul Chief our President of This with Chief can archived via Bryan recording our On and heard Officer; and section be call Diaz, are our the Officer. and Financial live call Investors will website. in be webcast a at

are on the addition contain our -- of in of regarding following some the website. future following Please addition or note and slide current a variety other performance These the or call differ you from with from for expectations company. time or company expectations future these may Investors the be materially today the events reasons. Securities information and presented to upon the We may that section documents call, In statements events actual statements the to of refer available forward-looking results the of projections the Exchange files the Commission. adversely presentation and will financial based the time management's

the forward-looking documents to that, Form the These XX-K, our differ will reports cause Paul. or statements. Form on to from X-K. its important that Form over reports turn quarterly I report contained its materially the on on transition With in results now Specifically company's XX-Q and risk projections call actual current those could identify factors

Paul Diaz

our will results you good call, continued afternoon plan. progress us. strategic our and our and from growth everyone. along QX Thanks discuss joining transformation the today's for quarter highlights Nathan on and Thank On with we

advance our answers revealing quarterly well-being inside of Myriad are results health vital health the teammates mission business each detect, to and and through At insights and patients our every X,XXX their of highlights, of walk the Genetics providers time, by to who Because prevent enabling want Before thank improving are continue work the we all our to I hard to patients for access day. better dedication, more we us. treat we genetic care of the disease. of and same expanding our

at financial work were us and Myriad by million $XXX.X our of XX% strong. of year-over-year last Genetics softness, diagnostic Despite revenues up and increased driven operating mission headwinds Our compared and this and all were and results typical year. In quarter, matters are test COVID-XX vision. to volumes seasonal of quarterly the XX% XXX,XXX

our business. core demonstrating Excluding revenue divested strong increased the assets, growth impact XX% of in year-over-year, our

positive of the quarter-over-quarter, year-over-year the $XXX.X year-to-date Total the collections sequentially fourth million operating expenses quarter. quarter expenses row, $X.X million average remained stable excluding For of revenue period $X $XXX.X million. and and adjusted $XX to total prior decreased million test and in operating per a impact in were million

and XXXX. million planned quarter cash will prime And in long-term operating of our balance into for $X.X linear towards investments business of sheet. At end Our per $X.XX. is our not was GAAP transformation our progress we the are as and progressing an $XX.X quarter, with as loss adjusted growth and last $XXX.X an our equivalents loss going adjusted the noted million on of cash, in have profitability but quarter, be loss units million operating share this

and deliver customers. we expect clear growth, maintaining focus path to profitability more to our consistent while our on cost is Our and

strategically facility. and down can With RBM closed, consumer-centric of a aligned revolving in our growth our now look to invest becoming Vectra credit and acquisitions on to our paid more During and we efforts we intensify technology-enabled for company. these closed commitment drive the of quarter, three the all further divestitures and begin divestitures to

and interaction care possible, is outcomes insights available. highest Myriad quality goal services as with each the between partners health and partners make to test, Genetics patients, our and provider genetic improving seamless while and Our is hassle-free

execute As previously develop are on four priorities: all quality growth discussed, to service strategic we accessibility we best-in-class more hard patients to of accelerate continue backgrounds. working to First, products reach and and

innovate. enhancing to continue capabilities physician our patient management, and we Second, rev opportunities to invest commercial experience, cycle and improve to enterprise both capabilities our in

full and Third, we on to drive their genetic to fulfill for we digital to new and to mission our set long-term insights key are And our products a to to profitability. better elevate look tools and committed to finally, are growth our data our expanding beginning execution of potential. ways to access leverage disciplined initiatives

We myRisk division, our cancer make test launch the on these the test to with are opportunities about hereditary following and for for market in riskScore In progress seeing Women's of Health we're excited priorities Hereditary each they our create women interest all by the continue unaffected our of Cancer ancestors. future. will increasing

months actively and first X% fully and in has this new recent marked is sales new only customers already first under Beginning with we've onboarded Melissa kind. our it’s The leading seen test improvement most year is serving our in this team XX% our and turnover belt five unit results. current her Women's Gonzales ones. Employee now operating of this from the pursuing in this time gone quarter, to Health last quarter. just business

currently only product non-invasive three requiring three involves Carrier will two and complex and carrier simplify screening is Screening expected from deliver tests. which of to several our test Prequel carrier combined screening operating stability, parents. results and workflows screening Women's growth prenatal pregnancy. undergo patients The that launch under prenatal to Foresight from non-invasive We're and We This out offering during progressing XXXX. our and Today prenatal samples different process samples improved clinical parents. division in one time-consuming, leadership Melissa's will both a the the of Health more continued in towards also value expect see of novel

gain clinical a that test the innovations and answers Prequel single is faster. are as key comprehensive Intermountain Illumina risk market of world-class and will simple, new also this companion have combined up with get variant likely helping diagnostics, do deliver genes. In power testing of prepare content our accurate sample. oncology prenatal is patients of and maternal test of and in their offering a advancing The profiling single Foresight the and ovarian solution We're assessment we Genomics allow merge of cancer a to neurogenetics new more but not provide a Our identifiable somatic, who to clinicians we to teaming for breast cancer, tumor stratification developing precision germline can treat next-gen one increased for sequencing risk riskScore pursuing pathogen capabilities. critical opportunity companion With riskScore services. our insights with diagnostic $X With tumor in women about excited launch billion breast cancer patients. with oncology, of Precision

to health meet number now field portfolio working in systems. customers needs large a Our and They and the wins are are also both valuable are embracing future. collaborating ensure traction with with at our of major and institutional providing gaining we current closely teams their feedback us our

which now regardless both test. favorable gene of to significant mutation and with new Hereditary the than and a as of for therapy who is patients our as we addition, prostate genetic specifically tumor urology, Cancer In history apply the cancer. diagnostic This X.X% that our can score to colorectal with step Polaris well qualifies both as Genetics myRisk to test win new test can well endometrial prediction urologists greater NCCN Myriad a profiling new a the companion for patient guidelines benefit tests, The only age. NCCN as expanding apply test In that population personal cancer applaud guidelines, selection. all for was per offer individuals are forward guidelines the the those from company a prostate cancer hereditary test. oncology the and the

We health result sample accelerated bio In of GeneSight effectiveness forward continued cancer patient prostate the for Health, growth seeing to in to a single test mental medications, helping with response test's with lead Mental Polaris physicians is continue better to from demand. there. look This just the the Psychotropic space determine our is a patient. and with patients

has addition, business field been right-sized inside and a capabilities, plan. sales sales executed commercial transformation key our catalyst force, on our marketing digital as we've expanded ongoing In robust a

patients currently has to kits. XX% provider continued are and and now and meeting for they of seeing and are involve clinicians general more for growing XX% Digital grow orders. Volumes Around and practice all online looking in mental XX% We GeneSight nurse now home-based GeneSight tests of to accounting for more. our are segments, including ordering where physicians health treatments are new practitioners.

launch exceed recently announced revenue. on ADHD projected test, objectives volume both including to GeneSight and and Additionally, in track is our

determine, our have we'll segments grow in how prioritized each of to and more to speak have business individually, future. that We to across collaboration together, our can the and units substantially

As growth reimbursement long-term to expansion. We're cost foundation establishing sold forward, and consumer-centric margin focusing profitability. and with to ensure tech-enabled future approach and goods we our we for at a physicians, move customers, are help and also on relationships of generate

of remains transformation a Our great expected be to done. although progressing be work there as deal is plan to

operations customers. We better organization and reset complexity refocus our of have and our reduce our serve and cost successfully base to

Once commercial we innovation and strategically had we again, that capabilities, for accelerating investing a execute customer-centric quarter now we in May. attention opportunities. in our are out more We as to turning continue laid growth plan acquisition the by tech-enabled on including to investors and strong sound technology,

is Our starting transformation to hold. commercial take

portfolio like results which in our more turn continue expand we to in our our I'd product QX discuss and seen and Health, testing to precision have and genetic to and brand, you've and us detail. of Mental leadership to both now mission over medicine. Bryan it a As financial strong grow trusted in to fulfill enable

Bryan Riggsbee

you our businesses. I on like giving an start Thank by you, update Paul. would to divested

Vectra cash. to Solutions During of in in for sale our and $XXX our business million autoimmune for completed the the $XXX quarter, million cash RBM LabCorp business QX to we

an great executing now back growth initiatives. excellent into and we three proceeds Our are key position invest to a on of all job the divestitures team has done in

new quarter of reported to model, We the Our as use year-over-year. gross and strengthen $XXX potential commercial solid $XXX.X technology plan our model, acquisitions. our revenue proceeds balance to XX% up sheet, to total divestiture operating commercial another of million as we as million, investments had fund in is well

Our quarterly increased strong which benefited XX% results volumes, year-over-year. from test

across was products. In labor going Additionally, $X.XX, to and more on report loss did XXXX. adjusted deliver track stable average we of growth consistent but Adjusted see portfolio we margin gross quarter, return of an per share selling profitability continue to into to were prices material the supply our remain constraints costs, due inflationary pressures, to increased operating experiencing we expenses XX.X% increased talent chain million. and the increased total global well $XXX.X disruptions for including as across competition are due many staffing organization. others, increased to adjusted as and Like costs

versus quarter revenue our Turning revenue million the in of Hereditary to quarter products, was the $XX last year. third in million for cancer $XX

Our pandemic, test on collections representing and quarter a access physicians increased Delta to number the positive by and was tests to of quarters and profiling year-over-year in to payment X,XXX a GeneSight X% were XX%, of approximately hereditary increased volumes and cancer year-over-year increase solid to healthcare attributable constraints year-over-year of XX% a in strain quarter, to related screening compared noninvasive million volumes an performance global seasonality. sequential ASP in revenue down Tumor sequentially, variant work. sequentially. the related X% X% had in was development cash X% Mental in of increased sequentially. in total test. was of an A is volumes which year. ordering revenue milestone million Health due typical year-over-year. the the of $X to primarily decrease of increase test Sequentially the Prequel and We million, $XX.X adjustments driven prior million, an five X% periods. quarter sequentially. increase our decrease one-time due COVID-XX new of enhances $XX of same revenue sequentially, our excluding better-than-expected ordered period prior to flat the flat the largely prenatal providers summer in XXX% In Oncology, delivered $XX.X myChoiceCDx XX% growth the increased revenue revenue revenue row. impact Health physicians X% proprietary technology, AMPLIFY ordering the In year-over-year, Women's Prenatal the and

Excluding a sequential consistent typical saw in summer revenue decline the we one-time seasonality. payment, with

against million $XX million due from of that Medicare economic received $X payments Medicare of approximately offset of CARES received balance in At company the offsetting the million. XXXX, during quarter-to-date remaining stimulus COVID-XX are During that pandemic. Medicare CARES The and payments quarter, the the those from payments bill fallout Services. the approximately we against balance. the addresses These for are prepaid advanced Medicare $XX the year-to-date the as for Act end performed services Act periods $XX funds the was million advanced part

volumes As both year-over-year stable mentioned was increased ASP revenue earlier, total XX% our and test and and year-over-year sequentially.

divested growth the in revenue business. in Excluding primarily a XX% strong XX% our assets, driven impact of year-over-year, increase exceptionally volumes, demonstrating core by the increased

market XX, unpredictability ending well at this XXXX and as variant the continued COVID-XX or December and to the pandemic environment, are as time. fiscal physicians, to guidance surrounding the the it have we providing test the Given the its impact customer on year strain, quarter ability to for continues healthcare not behavior XXXX for

We expect providing financial to resume in early XXXX. guidance

payments million myChoiceCDx reoccur. approximately expect not milestone do revenue we quarter, to fourth the to at $X tied Looking of

Vectra addition, in In QX. in will not in million the revenue divestiture test, the to $X.X of reoccur due QX the

We volumes typical positive performance. comparison headwinds will by improvements our offset from revenue those be expect that QX in

an a on standpoint, a also cash operating out-of-period to have quarters. anticipate in sequential of QX, in at the modestly From we of previous divestiture expense seen We collections Vectra to portion total levels basis expect the be we due business. positive decline the but expenses the not to sustainable

to will for going that help believe business about into and the We continue QX set QX stage XXXX. the be excited

XXX forward-looking expansion operating inflation in $XXX Investor revenue $XXX million to growth X% As a points; going commentary expenses called range May, to to gross and XX%; at provided reminder, margin which in of basis the XXX adjusted into of we the our XXXX. for of million following Day

in While continued these inflationary confident supply healthcare on feeling has remain we labor the and effects to access to we long-term and are which of has goals, certain costs. macroeconomic the limit pressures providers environment, exerted

customer market focused of mitigating that efficient favor and our these us new will future, margin cost over improving our goals. net our of these our focus for to our for I'll levels, OpEx on We over the assumptions, service will turn it the on remarks. to strategy the now and closing back commercial plans are believe Paul the effect that most pressure and impacts. While gross lab automated deliver will we time providers on long-term position

Paul Diaz

environment. in Thanks pleased We're this have to very difficult with been progress Bryan. the far a we year able make operating so

now into growth primary Our focus accelerating going is XXXX.

our to introduce acquisitions new elevate invest products and their year in next full business We to continue we're potential to and strategically while offerings work our pursuing partnerships. sound and new

ever, I'll exploring for and and eliminate to shareholders. wellness than now new profitable back more and health to all we for through to and path are deliver for to better ahead sustainable our insights Genetics our customers future bright better Myriad to And the forward serve patients a of turn genetic Now it Nathan ways results look and Q&A.

Nathan Smith

Paul. Thanks,

a non-GAAP website. the reconciliation financial guidance certain of non-GAAP and results Relations to be we results under a financial As GAAP GAAP Investor measures. during of today's section found reconciliation can use call, financial our financial A the non-GAAP of reminder, to

ready session. ask call. we our participation asking To Now are participants are ready Operator, only the one follow-up. the Q&A question Q&A to begin portion and broad ensure session today’s we we in one to now please for Q&A of are

Operator

Thank you.

Brennan So is first and question from line with open. Dan Cowen is

Unidentified Analyst

taking for the [ph] Hi, Thank on today. questions. Kyle Dan good you is afternoon. for This

any and here. on elaborate So potentially in or that call the you'd you aligned areas? to you you bit Do for gaps like is in specific strategically Maybe maybe driving today you can mentioned portfolio a on during included the growth fill the focus little think acquisitions. think that

Paul Diaz

good proprietary want are can the to. our expertise about nascent products of Well help within grow think can we One is value a there add three have in areas. finding we We areas to that sort marketplace. really of I how products view

And leverage product Health think portfolio expand so look and feeling our Oncology. those can I to primary begin and that – have we're Women's that we and we're kinds we opportunities confident channels in care to of for the now

tests, an we're underinvestment ground. we've leverage of and we made can looking that has lot as how our up area a been use data customers where And talked and think expectations the they part of than deliver historically to tech a ways of more more better about that insights differentiate offerings lastly, for accelerate I right for as of the care plan. to interpretive data product our our and deliver can enablement we've holistic

$XXX become financial we're And revolver, it talked of the cash and focusing undrawn we've as to so on. really on flexibility on about are the the there of internal investment those well. balance or more activities fund our areas as $XXX with that gives sheet, the us sort million million so ambitious And

Unidentified Analyst

Thank specifically Can you Got and you. has provide cancer hereditary And portion in cancer color on on so volume hereditary sequentially? any it. pricing how the women's another note, both year-over-year of testing. volumes, health and trended

Paul Diaz

it Well, part I'll operations to around Bryan start more add numbers. with the color the and of

We about not we've of and out cancer change. of doing quarters, tests test job prenatal made a of As selling were good previous an in this underperformance. products. particularly was hereditary our leadership of talked We area bag a

enthusiasm made a We've lot about now for presentations the she and discipline much force. energy, XXXX. opportunities bringing and excited business. and lot people of is of the budget the territories stabilized got multiple the a term One same the better longer and care experienced channels. doing really executive job health see of Gonzales, is an who products bringing Melissa leveraging in women's team we is opportunities selling of week channels sales to ground the health the channel on last open together, a in the the and the needed just Really we

lot growth in think can months or story share underlying for segment we us than there is business the been our X% X% much Melissa has to the marketplace. of that more for a in the Women's that of optimistic of and But opportunity Health the a feeling about And turnaround over into we very there's it capture time. So opportunities fair we're five participate and again XXXX.

Bryan Riggsbee

really would Kyle, just $XX period We've out of of and last of mean And rev that's the to Yes. cancer of the over about see at to in and Myriad remarks course really as has course hereditary through the I of the year pricing and on here our led and that what continued the terms referenced through of side. And all collections. positive the talked their million his portfolio efforts we've attributable Paul across stability work I the ASP to the in team the great stable is course been the year year. cash year. through of of add course cycle well the

So, I that well stable see that's think of think return care and preventive I an to you good can volume combination. inflection the a in visits extent pricing with

Paul Diaz

the from recognition ASP just couple prenatal world-class new we really products. markets company echo, revenue products of should think as just which there, operator's the on I'll and team and been challenges launch issues capability had the give cash volatility be new KPMG we We're helpful. look important really has build done grow years matters payer bring a on and confidence just and rev perspective, collecting tied to of that working and is will cash a and cycle investors some has reassures that scale And me Yeah. a great we ago job. to our the to that had and really here, in it collections we

Unidentified Analyst

it. you. Thank Got

Paul Diaz

you. Thank Sure.

Operator

is question ahead. go with Please Sung Ji Next BTIG. from Nam

Sung Ji Nam

-- launching hereditary taking for you year. next for profiling test could combined Hi. you're a clarification questions. about tumor Thanks talk the just the the cancer Paul,

have or the year about a about standpoint? cancer. indications to timing next from ovarian should plan throughout talk that You for other well, how the launch think as you we for Do

Paul Diaz

Yeah.

-- reports of So we've year to mean get definitely to the others. hope next successfully not and to experience sales And QX come thoughtful with from launch appreciate really a of in that best all for to out we're launch, seamless single It's and together marketplace want early I something it, mean the That's committed bring that. report to that. I XX% one companies can really in one a our differentiating KOLs and things doing We're probably the the like oncologists marketplace. are just prepared the right. make groundwork, ovarian want want They is we're We out Illumina before with do of report. interpretations. and lot to just more to to figure teams in sure really don't or three going two for Patrick, Intermountain big. Faith the and the the we launch want customer different the of have the partnership and that's we -- to three getting team a unless support we

to expand pancreatic, our that launch working to absolutely work those prostate tech markets, the Too take group. offerings, are total stream. We we'll is addressable to time. but we're that, that's when able on early what in more are some clearly R&D doing work breast, but bigger and be tell development absolutely Those part of going to in to

Sung Ji Nam

versus Great. follow-up the to color the level realize have, you. care the terms love the we'd psychiatrist channel, to kind more versus providers. limited be as the versus still Would pandemic? health women's as to -- to is, us my in of of of give health, -- prior more get you or you able access far then around Got there's currently oncology color access I And

Paul Diaz

of in Yeah. new normal a I all mean that to some we're sort recognizing here. we're I think extent,

going continue quarter salespeople, And -- exist. of and would to are XX variance. XX% some velocity had turnaround of fewer are Bain work moving we've these ones done then internal the this support so of really point customer a I and you GeneSight But to increasing when with a time the stable satisfaction. can't the the a XX are need great tougher kits quite bring where to salespeople there. just in you of at are the access patient because more portal and the external QX-to-QX little the the model, I some of to relatively people Delta barriers stable situation. level was And look, think modern they COVID that the office the comparisons in home. sort a science the to right it, can into we frankly a done they lot to get commercial the of And

commercial we're to now capabilities those product technological extending our other and so And lines.

year more ordering customer we platforms Next should see unified back-end and service. billing on platforms, more

So of the to customer experience. improve a lot work and the provider

we got Bryan than a But cost probably our sort lower our managers to little talked so, growth and And we to finding way. And at pressure increasing ways as Investor that working we're Day product We're get bumps different costs. achieve we on we've a talked good as organically it's long-term anticipate little there. that can sequencing and rates across about, world. along about I presentation. talked all story. our feel ways generally got we've of of here XX% different of X% volatile to we've lot the inflationary a it's lines But a pretty mean of

women's As I well as open of prenatal said territories channel. it's more in of products as that helping myRisk a learn to people in our lot health sell how same a resettling

ordering One send to patients to platforms is two of quite to have that. challenges do we frankly the different

So, fixing that. we're

of that growth the little here that create solved ease unnecessary customers. and there we will couple support So, think next should are just of things use for that over points be our quarters friction

Sung Ji Nam

Thank Great. you.

Paul Diaz

you. Thank

Operator

Please Leerink. SVB with ahead. Souda Puneet from is question go Next Instructions] [Operator

Puneet Souda

questions. for Hi, the Yes. taking thanks

are the and marketplace. I just you. I ability And could to following wanted So, together just do somatic when up there? both you just And I'll testing in mean of to position bit given at in on how there mine on coverage the do that if sort penetration with companies help the levels to us just your ask understand overall the a you could. where raise somatic look you germline multiple then maybe space stand you pricing the if GeneSight just competition providing of elaborate try test. on and Thank to sort of the

Paul Diaz

have we competition be first think certainly some the the on our so out in offering Well, We differentiated. marketplace. will

send marketing are then Some together. doing germline to tumor of trying people but are partnerships more those offerings the competitive and really tests the report separately test and where the

differentiated think this then work think faster our we with efficiently. great is we so this and can our highly Intermountain sales TSO capabilities force of of I market commercial XXX the is side. And on the to the and And rev combining think again more along kind Illumina's and all products bring more cost to effectively need we so partnerships more more that about cycle

the puzzle we differentiated will be differentiating think else the And No and got part That's of approved. accuracy So, it FDA absolutely traction on you've we've myChoice and has quality. in myChoice terms one the both of great three-piece here. as CDx. seen

than LCD about less more a there's with this this where trying that together beyond a in at the more great Mark's our particularly work highest think frankly, test, population the it's Medicaid team think Medicare can expanding the get price the we of in marketplace of And on combined we hopefully getting landscape opportunity bringing not-too-distant but plans roof if to coverage continue we where great future. efficient coverage. plans the have offerings capture this a extend with we able given the one and so needs I use oncologists it's benefit quite done. we're that previously across the share the payers has the fair with to be are make to ovarian you and should under for Advantage how price GeneSight, look work and ease of that we going we're discussed to expand On And broader

product for $XXX even-- or are COGS our think this I

Bryan Riggsbee

are $XX. COGS about

Paul Diaz

got this I Puneet wrong that $XX product. for

GeneSight. lot on margin a of got we've So,

world I'm about pervasively a social frankly, access in I've quite of and of so is part of mental for ones social young across And to broader that. that people And who for need the we many, of and this a health to that the nurse is be affecting practitioners. the determinants health see excited issue team an diagnosis really And and one secondary health years. what causes Mental They secondary goes disparities. are pushing that the the often been it addressing issues. for right economic rehospitalizations. seniors I'm but It's we many see the diagnosis part all

so, And broadly focus we across on and runway adoption our payer GeneSight just see and for great its types. all coverage

Operator

is go Goldman ahead. with Sachs. question Matt Next Sykes Please from

Paul Diaz

Hi, Matt.

Matt Sykes

the Hey maybe terms mental thought huge questions. bigger following sticky telehealth as I some But just Maybe question how get of think taking kind would does, Puneet's health, But If for goes up mental that people it There's do were treated. it. within health. been you maybe to of, choose telehealth do impact? you high think broaden thanks GeneSight, in on for some from do do of mental on for negative GeneSight sticky fairly or to think has that would question. And my on remain for health. a underdiagnosis that there's at a What benefit. pretty picture large remain population? kind Appreciate to impact that might a levels that positive what if

Paul Diaz

investment our of supportive Absolutely thesis.

to you'll our partners. telehealth If go see some to connecting to you website, connectivity you

he's on Eric have a charge at lot of Health along this at with and Growth Mental our discussions Health leading Optum We at with a Santa Officer, Chief side Mark telehealth number Optum the and team. of who the Rally that did

where absolutely issues, that the can mental with telehealth this growth are So think on payers well, with think health some partnerships we as number we a the there. opportunities. there focus potential there's sustain of great and of help And

most in this. nurse but is They're the it to me dealing early encouraging. front innings by on that the practitioners adoption of we're the line here, really the ones So is the the

absolutely, and and use think so And business in to through improving this partnerships, ease expand. growth how our we to through can that's of we telehealth access continue the sustain portal, test the unit

Matt Sykes

just increase Thanks be for particular. right talked you then and Great. in segments those -- And inside of there or recipe for Mental you where other your lot. kind the a certain sales other other that not that with markets are same specificities the about solution? Health tests, in use Can might

Paul Diaz

No.

-- bit. think we little a about think Matt I I this talked

using sales a into ask a the exactly We media our more people of lot about more are out, model for informed office have test using our and to segmented approach digital and process the be in social awareness same inside come commercial rolling but or test. the not

and the primary extending innings So we opportunities channel as women that's they oncology in particularly opportunity women's that where early -- into the to GeneSight health, health where And their so there. ultimately honestly, do women's many we cross-sell women's see in into of health, the well. care we're see

So that certainly execute an away face that's a to and but able as their nurses being well. opportunity on practice we're advanced day every from OB/GYNs that, year

do to stuff So lots of here. fun

Matt Sykes

you. Got it. Thank

Operator

is De Next Bank Please go of with Derik ahead. question America. from Bruin

Unidentified Analyst

Derik. This those questions. is Wolf for -- GeneSight Thanks one taking I for on follow of couple to up on [ph] the question. just another

that data not yet still patients are if And how are that test ordering self-pay at the to what reimbursing see? home work? payers those For more do or they need does screening that

Paul Diaz

Yes.

for So evolving sure. picture that's an

We progress getting other and making things. study with payers are showing meta and and through the

be getting VA. PTSD. got the team work, will that It come the it validate where with And referenced need it, study efficacy. different And more them few some and other that the and people of should the dramatic projects right think medication a soon efficacy. doing we'll the to was extending they're institutions four or quite collaborative frankly their family have with into about we've The somebody have doesn't is who possibilities struggling in to is in things. powerful people support Rush it. have programs clinical family anxiety. efficacy for And and who We and here to continues we're isn't of and report three solve out story financial in validating where depression some for the with through with want some real-time, data And it, clinicians congressional have BA veterans any very the excited we these GeneSight medications their clinical a ADHD to supportive to a there America quite that to go sooner,

a and the build clinical holding points need back very the health entering. markets part helping the validation are continue case where the not it's in desire the is manage clear mental all So we solution for very there. to as this us pronounced but we and of of and But

Unidentified Analyst

quick as just then a follow-up. And Great.

maternal And carrier test father carrier only? screen? pricing are how what was combined I thinking the there? about are you if the screening said On believe NIPT that you for and And the doing so you

Bryan Riggsbee

we It that of question. the we'll result get is unique talked more only pricing, for to the about that from run think closer would sample. Thanks -- to one as share haven't -- -- of uniqueness you launch. only really and just is test the that That's Yes. with from respect part to but details the able on you're mother. And that the get we I

Operator

Peterson that line with it is make Next would That question Meehan next with JPMorgan. Apologies our Nephron go disconnected. Research. from ahead. question Please Jack looks Tycho like

Bryan Riggsbee

Jack. Hey

Jack Meehan

Good you. Hello. afternoon. Thank

clarifications. First couple of just a

can breakdown then product? $X milestone For incremental payment million the to sales million by the $X that? out-of-period you the was provide of And

Bryan Riggsbee

$X that the alone earned Yes. it million in the is it The current rest $X.X of Of mainly products so the across that's because appropriate would the recorded period. other No, -- incremental related the the think I have of million sort and period was very was million, that in prenatal. different. stands spread been to hereditary $X about was

Jack Meehan

Got it.

Bryan Riggsbee

mainly Yes, other. but the some across prenatal

Jack Meehan

renews talked is, then the X% declines hoping you data you Day? was point X% maybe And the around testing Analyst be I appreciate cancer to different portion think range price in at your could do the kind commentary I way what payers hereditary other provide One book of will of with or about XXXX. Okay. you

Paul Diaz

the I our there. with lot bolster of That's just build about And health. in and and pricing. revenue recognition leverage seeing pretty can volumes the the But we're and know of pretty more And And confidence stability women's start insecurity overall feeling good X% we're Yes. source out-of-period kind we where still the hereditary as generally, cancer. feel about concern pretty We're been collections, a that's good X% we've positioned for to folks. talked of about we had. quality on good creating really particularly question our that. think a we there you've that in a been

again So, next we pricing overall pressure X% X% -- see year. to

of that's where willing favorable think pay to PAMA extended. that is places and expiring note are people for any some of in rates particular Some at product contracts a signing still have we and no it. unless And superior pretty contracts

have our before, cycle Now a that talked good pricing we pricing I driving leverage holding want our accessible. about pretty I our little feeling But and feeling personally I've a around really the about now, capabilities. to philosophical price, here. as that P&L volume, right we're good is lot sure rev change in make more about And not on just

Jack Meehan

a quarter I a you us as I final next to the can just on the the And of help question, guess, look million. parts profitability was there year? loss EBIT moving of at some around $X Great. with path I cash mean,

onetime next had at another of we're about hoping was about were of the just, nature year factors the profitability? and some midpoint. that somewhere $XX the tune on and get path And You price million also the $XX to kind million, color inflationary I talking in to to reductions what's

Paul Diaz

Well, yes.

So, giving Jack today as guidance we're know. you not

we transparency on sales managing the managing on, growing we've us. point with the of And We're position gross stability to start we're ease had. getting volumes. and use a to path the a of in be now which ability value thing in the of work I the that of OpEx at The The think really industry-leading about. the is with that improved is the demonstrated cost patients and work in I on we're terms behind competitive consistent of and think proposition, is we what we've force, synergies clarity margins. disciplined eliminating where go-to-market the managers our mission lot talked another have divestiture care, seeing barriers that with

pressures that, And the Bryan do just profitable we've more of I we want as which so, lost is going others into were quarter. year. reiterated, in quarter, which weak you we next most to of and seasonally the recognize $X.XX But We inflationary know representative sort got last increasing year.

quarter, And thing had key bunch puts as with of TAM. so always in takes also There's we legal a the this know. and you well associated this expenses

next we quarter. a on a So of There's puts COGS, path overall, year. we profitability clear stable given OpEx just takes revenue, to believe have and any reach in lot

Jack Meehan

Paul. you, Thank

Paul Diaz

Jack. Thank you,

Operator

from question a JPMorgan. Peterson with do have We Tycho

open. is line Your

Rachel Olson

Great. Hi. This Tycho. Thanks Rachel on taking the is for for question.

coverage broad exited year risk a spring. had we've this market about NIPT of then average and first the earlier another So player for now

stand can where share you that talk shifted you has just now? how in market So, and about

Paul Diaz

have better. they question play to quarter. on ether a while fair to of to getting ability a the They physician execute not comment prior if answer ordering than, I the those work I other I'm can sure, things or take Bryan's sort think give that we're footprint. in in the of year we specific a and themselves things, And a our calls, just out. guidelines and that through take expansion to don't materialize two of share

Bryan Riggsbee

to would of of would fact A by weren't for Yes, ASP just in on relative tests risk, a that were the course previously. the prenatal -- we're recovery our lot more the it's sort over so going say share, just that anyway, ordering I available test the year. respect what paid average that I I the the now already the reimbursement that is you've to was nice driven folks in with hard that market. of playing say seen add to of tell we getting it's most think I But that's to data

course that So, I the think we've last that's `over year. really seen of where of the benefit

Paul Diaz

Yeah. of important talked that's And one of those as our to that about pays, right? but -- no we've so goals is it's of trying our all And reduce weird important one GeneSight, in industry things been for of how to I've it's and on we particularly other but it's paid head and coverage, on my make around things. tests don't portions progress get here a continue put patient number is for, whether very different something fronts, we're many to focused

but we our tests and sure that both priced really And that sequencing done just can enterprise. affordable again, costs. job particularly So of good the an across are cover costs COGS make our opportunity accessible, reducing across a to it's and and we've

P&L. ability the that creation really drive for of volume So leverage can just of here lot shareholders a have value in a lot the

Rachel Olson

is on Great. follow-up And then GeneSight. my

during believe that And the I a sales have the Day, was times guys team on you Analyst piloting few the call. in that mentioned this phase. You mentioned inside

early force Thanks. GeneSight? trends that how just can just inside progress So also, much color further you us that expand on you the you're sales for any seeing? would some And give and

Paul Diaz

added another so. XX think I people or we've

the we're think business I the And solve starting that to We that's And do what to more XX particularly folks system, as solve we the something up friction. friction want. doctor we're has like technology quickly well. or problem. want a and just patient company a a -- we're the want question to spot. these as means, possible. units in We building other to solve to on XX, while that We the practitioner, answer to next want be gets as you if that And results your that time. nurse their a it we order a you to or want to their get in

said, the in they've And so more incredible And capability up in there. job them just an done external I'd as added for division. more all if XX-person could. than of Mason, we've have folks lot I a those I clone salespeople expensive And just that external made

something we couldn't done now And doing other done, be it. people has but are been industries and in that that

Rachel Olson

Great. Thank you.

Paul Diaz

deck? on else Anybody you. Thank

Operator

on deck. else one No

Nathan Smith

call. replay will Thank be on This all earnings one for available joining this week. Kevin. our webcast our website concludes us again you via you, afternoon. for A Thank

Paul Diaz

Thanks support, for your everyone.

Operator

participating for And everyone and thank our call that We does indeed disconnect. may conclude now for you today.