Myriad Genetics, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Myriad Genetics achieved total revenue of $213.3 million, an 11% increase from $191.9 million in the same quarter of 2023. Testing revenues for the nine months reached $627.0 million, up from $556.6 million year-over-year. The growth was driven by increased testing volumes and higher average revenue per test across key product lines, including Hereditary Cancer and Pharmacogenomics, which saw respective revenue increases of 4% and 12%.

Despite the revenue growth, Myriad reported an operating loss of $(20.0) million for the third quarter, an improvement from $(60.1) million in the same period last year. The net loss for the quarter was $(22.1) million, compared to $(61.3) million in Q3 2023. For the nine months, the net loss decreased to $(84.8) million from $(232.1) million in the prior year, reflecting improved operational efficiency and reduced legal settlements, which were $0 in 2024 compared to $111.8 million in 2023.

Total costs and expenses for the third quarter were $233.3 million, down from $252.0 million in the same quarter of 2023. Research and development expenses increased by $4.5 million, primarily due to higher headcount and laboratory costs. Selling, general, and administrative expenses remained stable year-over-year.

Strategically, Myriad completed the divestiture of its EndoPredict business to Eurobio Scientific for $10.0 million, resulting in a net loss of $12.4 million for the nine months ended September 30, 2024. The company also acquired assets from Intermountain Precision Genomics, which contributed a gain of $2.2 million to other income.

As of September 30, 2024, Myriad's total current assets were $293.2 million, down from $313.6 million at the end of 2023, with cash and cash equivalents decreasing to $99.9 million from $132.1 million. The accumulated deficit increased to $(714.3) million from $(629.5) million. The company’s long-term debt under its asset-based revolving credit facility stood at $40.0 million.

Looking ahead, Myriad faces challenges due to UnitedHealthcare's updated medical policy effective January 1, 2025, which will no longer cover certain pharmacogenetic tests, including GeneSight. This change is expected to negatively impact future revenue and profitability. The company is assessing the implications of this policy change and plans to engage with UnitedHealthcare to address the situation.