mygn-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________

FORM 10-Q

_________________________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 0-26642

_________________________________________

MYRIAD GENETICS, INC.

(Exact name of registrant as specified in its charter)

_________________________________________

Delaware

(State or other jurisdiction

of incorporation or organization)

322 North 2200 West, Salt Lake City, UT

(Address of principal executive offices)

87-0494517

(I.R.S. Employer Identification No.)

84116

(Zip Code)

Registrant's telephone number, including area code: (801) 584-3600

Not applicable

(Former name or former address, if changed since last report)

_________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

MYGN

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of November 4, 2024, the registrant had 91,035,230 shares of $0.01 par value common stock outstanding.

MYRIAD GENETICS, INC.

INDEX TO FORM 10-Q


		Page
	PART I - Financial Information

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 (unaudited)	4

	Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 (unaudited)	5

	Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2024 and 2023 (unaudited)	6

	Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2024 and 2023 (unaudited)	7

	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (unaudited)	8

	Notes to Condensed Consolidated Financial Statements (unaudited)	9

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33

Item 4.	Controls and Procedures	33

	PART II - Other Information

Item 1.	Legal Proceedings	34

Item 1A.	Risk Factors	34

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36

Item 3.	Defaults Upon Senior Securities	36

Item 4.	Mine Safety Disclosures	36

Item 5.	Other Information	37

Item 6.	Exhibits	37

	Signatures	38

Table of Contents

PART I - Financial Information

Item 1. Financial Statements.

MYRIAD GENETICS, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (unaudited)

(in millions)


	September 30, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	99.9	$	132.1
Marketable investment securities	—		8.8
Trade accounts receivable	125.7		114.3
Inventory	26.2		22.0
Prepaid taxes	17.0		17.0
Prepaid expenses and other current assets	24.4		19.4

Total current assets	293.2		313.6
Operating lease right-of-use assets	57.4		61.6

Property, plant, and equipment, net	115.4		119.0
Intangibles, net	312.5		349.5
Goodwill	286.3		287.4
Other assets	16.5		15.4
Total assets	$	1,081.3	$	1,146.5
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	29.6	$	25.8
Accrued liabilities	111.2		113.9
Current maturities of operating lease liabilities	13.5		16.2


Total current liabilities	154.3		155.9
Unrecognized tax benefits	31.4		30.2

Long-term debt	39.0		38.5
Noncurrent operating lease liabilities	90.6		97.4
Other long-term liabilities	34.3		41.3
Total liabilities	349.6		363.3
Commitments and contingencies
Stockholders’ equity:
Common stock, 91.0 and 89.9 shares outstanding at September 30, 2024 and December 31, 2023, respectively	0.9		0.9
Additional paid-in capital	1,445.2		1,415.5
Accumulated other comprehensive loss	(0.1)		(3.7)
Accumulated deficit	(714.3)		(629.5)


Total stockholders' equity	731.7		783.2
Total liabilities and stockholders’ equity	$	1,081.3	$	1,146.5

See accompanying notes to Condensed Consolidated Financial Statements.

Table of Contents

MYRIAD GENETICS, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (unaudited)

(in millions, except per share amounts)


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023

Testing revenue	$	213.3	$	191.9	$	627.0	$	556.6

Costs and expenses:
Cost of testing revenue	63.5		57.6		192.5		174.6
Research and development expense	28.5		24.0		81.2		67.7
Selling, general, and administrative expense	139.1		136.1		424.0		428.5
Legal settlements	—		34.3		—		111.8
Goodwill and long-lived asset impairment charges	2.2		—		13.8		—
Total costs and expenses	233.3		252.0		711.5		782.6
Operating loss	(20.0)		(60.1)		(84.5)		(226.0)
Other income (expense):
Interest income	0.4		0.6		1.4		1.8
Interest expense	(0.8)		(1.0)		(2.1)		(2.0)
Other	(0.8)		(0.7)		0.8		(3.7)
Total other income (expense), net	(1.2)		(1.1)		0.1		(3.9)
Loss before income tax	(21.2)		(61.2)		(84.4)		(229.9)
Income tax expense	0.9		0.1		0.4		2.2
Net loss	$	(22.1)	$	(61.3)	$	(84.8)	$	(232.1)


Net loss per share:
Basic and diluted	$	(0.24)	$	(0.75)	$	(0.94)	$	(2.84)

Weighted average shares outstanding:
Basic and diluted	90.9		81.9		90.5		81.6

See accompanying notes to Condensed Consolidated Financial Statements.

Table of Contents

MYRIAD GENETICS, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Loss (unaudited)

(in millions)


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Net loss	$	(22.1)	$	(61.3)	$	(84.8)	$	(232.1)
Change in unrealized loss on available-for-sale debt securities, net of tax	—		0.3		0.1		2.5
Change in foreign currency translation adjustment, net of tax	(0.5)		(0.1)		(1.5)		0.7
Reclassification adjustments for losses included in net loss, net of tax	—		0.1		—		1.5
Reclassification of cumulative translation adjustment to income upon sale or liquidation of certain foreign entities, net of tax	4.4		(0.1)		5.1		0.4
Comprehensive loss	$	(18.2)	$	(61.1)	$	(81.1)	$	(227.0)

See accompanying notes to Condensed Consolidated Financial Statements.

Table of Contents

MYRIAD GENETICS, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity (unaudited)

(in millions)


	Common stock		Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit		Myriad Genetics, Inc. Stockholders’ equity
BALANCES AT DECEMBER 31, 2022	$	0.8	$	1,260.1	$	(8.9)	$	(366.2)	$	885.8
Issuance of common stock under stock-based compensation plans, net of shares exchanged for withholding tax	—		(4.9)		—		—		(4.9)
Stock-based compensation expense	—		7.5		—		—		7.5
Net loss	—		—		—		(54.7)		(54.7)
Other comprehensive income, net of tax	—		—		1.5		—		1.5
BALANCES AT MARCH 31, 2023	$	0.8	$	1,262.7	$	(7.4)	$	(420.9)	$	835.2
Issuance of common stock under stock-based compensation plans, net of shares exchanged for withholding tax	—		2.9		—		—		2.9
Stock-based compensation expense	—		11.2		—		—		11.2
Net loss	—		—		—		(116.1)		(116.1)
Other comprehensive income, net of tax	—		—		2.0		—		2.0
BALANCES AT JUNE 30, 2023	$	0.8	$	1,276.8	$	(5.4)	$	(537.0)	$	735.2
Issuance of common stock under stock-based compensation plans, net of shares exchanged for withholding tax	—		(2.2)		—		—		(2.2)
Stock-based compensation expense	—		11.6		—		—		11.6
Net loss	—		—		—		(61.3)		(61.3)
Other comprehensive income, net of tax	—		—		0.1		—		0.1
BALANCES AT SEPTEMBER 30, 2023	$	0.8	$	1,286.2	$

SEC Form 10-Q filed by Myriad Genetics Inc.