UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  November 7, 2017

 

MYRIAD GENETICS, INC.

(Exact name of registrant as specified in its charter)

 

 

 

320 Wakara Way

Salt Lake City, Utah 84108

(Address of principal executive offices) (Zip Code)

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

Not Applicable

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

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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. ☐

 

 

 

 

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On November 7, 2017, Myriad Genetics, Inc. (“Myriad”) announced its financial results for the three  months ended September 30, 2017.  The earnings release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

On its earnings conference call for the three months ended September 30, 2017, Myriad also delivered a slide presentation, which is attached hereto as Exhibit 99.2 to this Current Report on Form 8-K and incorporated herein by reference.  [The slide presentation will also be available under the “Investors –Events & Presentations” section of Myriad’s website at www.myriad.com.]

FORWARD-LOOKING STATEMENTS

Exhibits 99.1 and 99.2 contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our business, goals, strategy and financial and operational outlook. These “forward-looking statements” are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by forward-looking statements. These risks and uncertainties include, but are not limited to: the risk that sales and profit margins of our existing molecular diagnostic tests and pharmaceutical and clinical services may decline or will not continue to increase at historical rates; risks related to our ability to transition from our existing product portfolio to our new tests; risks related to changes in the governmental or private insurers reimbursement levels for our tests or our ability to obtain reimbursement for our new tests at comparable levels to our existing tests; risks related to increased competition and the development of new competing tests and services; the risk that we may be unable to develop or achieve commercial success for additional molecular diagnostic tests and pharmaceutical and clinical services in a timely manner, or at all; the risk that we may not successfully develop new markets for our molecular diagnostic tests and pharmaceutical and clinical services, including our ability to successfully generate revenue outside the United States; the risk that licenses to the technology underlying our molecular diagnostic tests and pharmaceutical and clinical services tests and any future tests are terminated or cannot be maintained on satisfactory terms; risks related to delays or other problems with operating our laboratory testing facilities; risks related to public concern over our genetic testing in general or our tests in particular; risks related to regulatory requirements or enforcement in the United States and foreign countries and changes in the structure of the healthcare system or healthcare payment systems; risks related to our ability to obtain new corporate collaborations or licenses and acquire new technologies or businesses on satisfactory terms, if at all; risks related to our ability to successfully integrate and derive benefits from any technologies or businesses that we license or acquire; risks related to our projections about the potential market opportunity for our products; the risk that we or our licensors may be unable to protect or that third parties will infringe the proprietary technologies underlying our tests; the risk of patent-infringement claims or challenges to the validity of our patents; risks related to changes in intellectual property laws covering our molecular diagnostic tests and pharmaceutical and clinical services and patents or enforcement in the United States and foreign countries, such as the Supreme Court decision in the lawsuit brought against us by the Association for Molecular Pathology et al; risks of new, changing and competitive technologies and regulations in the United States and internationally; and other factors discussed under the heading “Risk Factors” contained in Item 1A of our most recent Annual Report on Form 10-K, which has been filed with the Securities and Exchange Commission, as well as any updates to those risk factors filed from time to time in our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. All information in the exhibits is as of the date of the exhibits, and Myriad undertakes no duty to update this information unless required by law.

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(d)

 

 

The exhibit(s) may contain hypertext links to information on our website or other parties’ websites. The information on our website and other parties’ websites is not incorporated by reference into this Current Report on Form 8-K and does not constitute a part of this Form 8-K.

In accordance with General Instruction B-2 of Form 8-K, the information set forth in Item 2.02 and Item 7.01 and in Exhibits 99.1 and 99.2 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

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Exhibit 99.1

 

News Release

Media Contact:Ron RogersInvestor Contact:Scott Gleason

(801) 584-3065(801) 584-1143

rrogers@myriad.comsgleason@myriad.com

 

 

Myriad Genetics Reports Fiscal First-Quarter 2018 Financial Results

 

 

 

SALT LAKE CITY, Nov. 7, 2017 – Myriad Genetics, Inc. (NASDAQ: MYGN), a global leader in molecular diagnostics and personalized medicine, today announced financial results for its fiscal first-quarter 2018, provided an update on recent business highlights, maintained its fiscal year 2018 financial guidance, and issued fiscal second-quarter 2018 financial guidance.

"The first quarter exceeded our expectations and represented an excellent start to the fiscal year as a result of strong hereditary cancer and GeneSight^® test demand,” said Mark C. Capone, president and CEO, Myriad Genetics. “Perhaps more importantly we had a number of significant reimbursement catalysts that strengthen our ability to deliver on our long-term financial goals.” 

 

Financial Highlights

The following table summarizes the financial results for the fiscal first-quarter 2018:

 

 

 

 

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Business Highlights

 

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Fiscal Year 2018 and Fiscal Second-Quarter 2018 Financial Guidance

Below is a table summarizing Myriad’s fiscal year 2018 and fiscal second-quarter 2018 financial guidance:

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These projections are forward-looking statements and are subject to the risks summarized in the safe harbor statement at the end of this press release.  The Company will provide further details on its business outlook during the conference call today to discuss the fiscal first-quarter financial results, fiscal year 2018 financial guidance, and fiscal second-quarter 2018 financial guidance.

 

Conference Call and Webcast

A conference call will be held today, Tuesday, November 7, 2017, at 4:30 p.m. EDT to discuss Myriad’s financial results for the fiscal first-quarter, business developments and financial guidance.  The dial-in number for domestic callers is 1-800-701-6414.  International callers may dial 1-303-223-4376.  All callers will be asked to reference reservation number 21859999.  An archived replay of the call will be available for seven days by dialing (800) 633-8284 and entering the reservation number above.  The conference call along with a slide presentation will also will be available through a live webcast at www.myriad.com.

 

About Myriad Genetics

Myriad Genetics Inc., is a leading personalized medicine company dedicated to being a trusted advisor transforming patient lives worldwide with pioneering molecular diagnostics.  Myriad discovers and commercializes molecular diagnostic tests that: determine the risk of developing disease, accurately diagnose disease, assess the risk of disease progression, and guide treatment decisions across six major medical specialties where molecular diagnostics can significantly improve patient care and lower healthcare costs.  Myriad is focused on five strategic imperatives:  stabilizing hereditary cancer revenue, growing new product volume, expanding reimbursement coverage for new products, increasing RNA kit revenue internationally and improving profitability with Elevate 2020.  For more information on how Myriad is making a difference, please visit the Company's website: www.myriad.com.

Myriad, the Myriad logo, BART, BRACAnalysis, Colaris, Colaris AP, myPath, myRisk, Myriad myRisk, myRisk Hereditary Cancer, myChoice, myPlan, BRACAnalysis CDx, Tumor BRACAnalysis CDx, myChoice HRD, EndoPredict, Vectra, GeneSight, riskScore and Prolaris are trademarks or registered

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trademarks of Myriad Genetics, Inc. or its wholly owned subsidiaries in the United States and foreign countries. MYGN-F, MYGN-G.

 

 

MYRIAD GENETICS, INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS (Unaudited)

(in millions, except per share amounts)

 

 

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Consolidated Balance Sheets (Unaudited)

(in millions)

 

 

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Consolidated Statement of Cash Flows (Unaudited)

(in millions)

 

 

 

 

 

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Safe Harbor Statement

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the Company’s hereditary cancer business representing a major new epoch in hereditary cancer testing; the Company’s expectation that riskScore will enhance the myRisk Hereditary Cancer test; broadening payor coverage and delivering on the Company’s long-term financial goals; the Company’s expectation that a supplemental PMA for BRACAnalysis CDx in conjunction with AstraZeneca’s Lynparza submission for HER2- metastatic breast cancer will be approved in the fiscal third quarter; the National Comprehensive Cancer Network (NCCN) updating their professional guidelines to include a recommendation that all metastatic prostate cancer patients receive hereditary cancer testing; UnitedHealthcare updating its hereditary breast and ovarian cancer coverage policy to include coverage for all metastatic breast cancer patients based upon the need to evaluate these patients for PARP inhibitor therapy; the Company’s second-quarter revenue guidance of $187 to $189 million, adjusted earnings per share of $0.22 to $0.24, and diluted earnings per share guidance of $0.08 to $0.10, and the Company’s reiterated fiscal full year revenue guidance of total revenue of $750 to $770 million, diluted earnings per share guidance of $0.37 to $0.42, and adjusted earnings per share guidance of $1.00 to $1.05, as further discussed under the caption “Fiscal Year 2018 and Fiscal Second-Quarter 2018 Financial Guidance”; and the Company’s strategic directives under the caption “About Myriad Genetics.” These “forward-looking statements” are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those described or implied in the forward-looking statements. These risks include, but are not limited to: the risk that sales and profit margins of the Company’s existing molecular diagnostic tests and pharmaceutical and clinical services may decline or will not continue to increase at historical rates; risks related to the Company’s ability to transition from its existing product portfolio to the Company’s new tests; risks related to changes in the governmental or private insurers’ reimbursement levels for the Company’s tests or the Company’s ability to obtain reimbursement for its new tests at comparable levels to its existing tests; risks related to increased competition and the development of new competing tests and services; the risk that the Company may be unable to develop or achieve commercial success for additional molecular diagnostic tests and pharmaceutical and clinical services in a timely manner, or at all; the risk that the Company may not successfully develop new markets for its molecular diagnostic tests and pharmaceutical and clinical services, including the Company’s ability to successfully generate revenue outside the United States; the risk that licenses to the technology underlying the Company’s molecular diagnostic tests and pharmaceutical and clinical services tests and any future tests are terminated or cannot be maintained on satisfactory terms; risks related to

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delays or other problems with operating the Company’s laboratory testing facilities; risks related to public concern over the Company’s genetic testing in general or the Company’s tests in particular; risks related to regulatory requirements or enforcement in the United States and foreign countries and changes in the structure of the healthcare system or healthcare payment systems; risks related to the Company’s ability to obtain new corporate collaborations or licenses and acquire new technologies or businesses on satisfactory terms, if at all; risks related to the Company’s ability to successfully integrate and derive benefits from any technologies or businesses that it licenses or acquires, including but not limited to the Company’s acquisition of Assurex, Sividon and the Clinic; risks related to the Company’s projections about the potential market opportunity for the Company’s products; the risk that the Company or its licensors may be unable to protect or that third parties will infringe the proprietary technologies underlying the Company’s tests; the risk of patent-infringement claims or challenges to the validity of the Company’s patents; risks related to changes in intellectual property laws covering the Company’s molecular diagnostic tests and pharmaceutical and clinical services and patents or enforcement in the United States and foreign countries, such as the Supreme Court decision in the lawsuit brought against us by the Association for Molecular Pathology et al; risks of new, changing and competitive technologies and regulations in the United States and internationally; the risk that the Company may be unable to comply with financial operating covenants under the Company’s credit or lending agreements; the risk that the Company will be unable to pay, when due, amounts due under the Company’s credit or lending agreements; and other factors discussed under the heading “Risk Factors” contained in Item 1A of the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as well as any updates to those risk factors filed from time to time in the Company’s Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

 

Statement regarding use of non-GAAP financial measures

In this press release, the Company’s financial results and financial guidance are provided in accordance with accounting principles generally accepted in the United States (GAAP) and using certain non-GAAP financial measures. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses non-GAAP financial measures to establish budgets and to manage the Company’s business. A reconciliation of the GAAP financial results to non-GAAP financial results is included in the attached schedules.

Following is a description of the adjustments made to GAAP financial measures:

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The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Non-GAAP financial results are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.  

 

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Reconciliation of GAAP to Non-GAAP Financial Measures

for the Three Months ended September 30, 2017 and 2016

(Unaudited data in millions, except per share amount

 

 

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Free Cash Flow Reconciliation

(Unaudited data in millions)

 

 

Reconciliation of GAAP to Non-GAAP for Fiscal Year 2018 and Fiscal Second-Quarter 2018 Financial Guidance

The Company’s future performance and financial results are subject to risks and uncertainties, and actual results could differ materially from guidance set forth below. Some of the factors that could affect the Company’s financial results are stated in the safe harbor statement of this press release. More information on potential factors that could affect the Company’s financial results are included under the heading "Risk Factors" contained in Item 1A in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as well as any updates to those risk factors filed from time to time in the Company’s Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

 

Myriad Genetics Fiscal First-Quarter 2018 Earnings Call 11/07/2017 Exhibit 99.2

Forward Looking Statements Some of the information presented here today may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. These statements are based on management’s current expectations and the actual events or results may differ materially and adversely from these expectations. We refer you to the documents the Company files from time to time with the Securities and Exchange Commission, specifically, the Company’s annual reports on Form 10-K, its quarterly reports on Form 10-Q, and its current reports on Form 8-K. These documents identify important risk factors that could cause the actual results to differ materially from those contained in the Company’s projections or forward-looking statements. In this presentation, the Company’s financial results and financial guidance are provided in accordance with accounting principles generally accepted in the United States (GAAP) and using certain non-GAAP financial measures. The Company’s financial measures under GAAP include substantial one-time charges related to its acquisitions and ongoing amortization expense related to acquired intangible assets that will be recognized over the useful lives of the assets and charges related to executive severance. Management believes that presentation of operating results that excludes these items provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses non-GAAP financial measures to establish budgets and to manage the Company’s business. A link to reconciliation of the GAAP to non-GAAP financial guidance is provided above. Forward Looking Statements Non-GAAP Financial Measures Fiscal Year 2018 GAAP diluted earnings per share $1.41 - $1.46 Acquisition – amortization of intangible assets $0.53 Change in contingent consideration ($1.04) One time charges $0.10 Non-GAAP diluted earnings per share $1.00 - $1.05 Fiscal Second-Quarter 2018 GAAP diluted earnings per share $0.08 - $0.10 Acquisition – amortization of intangible assets $0.12 One time charges $0.02 Non-GAAP diluted earnings per share $0.22 - $0.24 For additional information on GAAP to non-GAAP reconciliation see: https://www.myriad.com/investors/gaap-to-non-gaap-reconciliation/

FY2018 First-Quarter Financial Results Significantly Exceeded Expectations 1Q18 Actual Results 1Q17 Actual Results YoY Change Guidance Revenue (in mil.) $190.2 $177.5 7% $181 - $183 GAAP EPS $1.15 ($0.02) NM $0.05 - $0.07 Adjusted EPS $0.26 $0.23 13% $0.19 - $0.21

Critical Success Factors to Achieve Strategic Goals Stabilize hereditary cancer revenue Grow new product volume STRATEGIC GOALS CRITICAL SUCCESS FACTORS >10% Revenue Growth >30% Operating Margin 7 Products >$50M >10% International Revenue Expand reimbursement for new products Increase international RNA kit revenue Improve profitability with Elevate 2020

Stabilize Hereditary Cancer Revenue Continued Strong Volume Growth and Stable Pricing Outlook VOLUME Exceeded 3% volume growth target in 1Q18 3rd straight quarter with YoY volume growth Launched riskScore™ which broadens competitive moat and could deepen market penetration PRICING In line with expectations 3% U.S. Oncology & ION Customizable Panels Digital Integration riskScore™ Competitor Quality Concerns Key Drivers of Volume Trends

Grow New Product Volume Double-Digit New Product Volume Growth in Fiscal Year 1Q18 New products comprise ≈70% of test volume Adjusted new product volume grew at double-digit rate year-over-year* EndoPredict reaches 2% market share in U.S. Double-digit YoY Growth ≈30% ≈70% *includes full quarterly GeneSight volume from 1Q17

Expand Reimbursement Coverage for New Products Significant Progress Towards Broader Coverage Current U.S. Reimbursement GeneSight showed statistically significant improvement in response and remission in MDD Medicare begins reimbursement for Prolaris favorable intermediate patients Signed Vectra DA Coverage with Evidence Development (CED) agreement with CareFirst Vectra DA now has demonstration study agreements with 5 of the top 20 payers

Increase Revenue Internationally Two Key Events in 1H18 Canada: Launched first GeneSight demonstration study with Sun Life Financial which covers 20% of Canadian population Canadian Market opportunity = 1,000,000 treatment resistant depression patients per year Japan: Submitted BRACAnalysis CDx for review by the Pharmaceutical Medical Devices Agency (PMDA) and marketing approval by Ministry of Health, Labor and Welfare as a companion diagnostic to Lynparza for use in HER2- metastatic breast cancer patients Market opportunity = >10,000 patients per year

Improve Profitability With Elevate 2020 Significant Sequential Reduction in Adjusted Operating Expenses $129.6 $121.9 $7.7M sequential decline

Fiscal First-Quarter 2018 Revenue By Product Increased 7% Over Q1 FY2017 Product 1Q18 1Q17 YoY Growth Hereditary Cancer $126.7 $139.3 (9%) GeneSight $28.8 $7.2 300% Vectra DA $16.0 $11.6 38% Prolaris $2.9 $2.9 0% EndoPredict $1.9 $1.7 12% Other $2.5 $2.4 4% Total Molecular Diagnostic Revenue $178.8 $165.1 8% Pharmaceutical & Clinical Services $11.4 $12.4 (8%) Total Revenue $190.2 $177.5 7% (in millions)

Fiscal First-Quarter Financial Results Adjusted EPS Increased 13% Over Q1 FY2017 (in millions except per share data) 1Q18 1Q17 YoY Growth Total Revenue $190.2 $177.5 7% Gross Profit $147.2 $137.5 7% Gross Margin 77.4% 77.5% -10 BP Operating Income $87.4 $5.7 1433% Adjusted Operating Income $24.7 $21.6 14% Adjusted Operating Margin 13.0% 12.2% +80 BP Net Income $81.1 ($1.2) NM Diluted EPS $1.15 ($0.02) NM Adjusted EPS $0.26 $0.23 13%

FY18 and 2Q18 Financial Guidance Maintaining Fiscal Year 2018 Guidance Metric Fiscal Year 2018 Fiscal Second-Quarter 2018 Revenue $750 to $770 million $187 to $189 million GAAP Diluted EPS $1.41 to $1.46 $0.08 to $0.10 Adjusted EPS $1.00 to $1.05 $0.22 to $0.24 For additional information on GAAP to non-GAAP reconciliation see: https://www.myriad.com/investors/gaap-to-non-gaap-reconciliation/

Potential Catalysts in Fiscal Year 2018 Multiple Possibilities for Material Upsides Potential Catalyst Potential Timing Opportunity Annualized Revenue Impact Annualized EPS Impact Hereditary Cancer Better Volume Growth FY18 6% Growth 9% Growth $15M $30M $0.12 $0.24 BRACAnalysis CDx Metastatic Breast Cancer Indication 2H FY18 10% Penetration 30% Penetration $25M $75M $0.19 $0.57 GeneSight Additional Reimbursement FY18 Top Commercial Payer 3 Top 10 Payers $40M $60M $0.36 $0.54 Vectra DA ACR Guidelines & Reimbursement 2H FY18 Top Commercial Payer 3 Top 10 Payers $6M $9M $0.05 $0.08 Prolaris Additional Reimbursement FY18 Top Commercial Payer 3 Top 10 Payers $3M $5M $0.03 $0.05 EndoPredict Increased Adoption in U.S. FY18 5% market penetration $12M $0.09 myPath Melanoma Additional Reimbursement FY18 Medicare Coverage $2M $0.02

riskScore Represents New Epoch in Hereditary Cancer Further Widens Already Substantial Competitive Moat Before After 100% of patients get a definitive answer 100% of patients get a definitive answer 10% of patients get a definitive answer

GeneSight RCT Achieves Gold Standard Outcomes Highly Statistically Significant Improvement in Response & Remission Rates Statistically significant improvement in gold-standard outcomes of response and remission at eight weeks Improvement in HAMD-17 scores at eight weeks approached statistical significance Continued improvement in remission rates, response rates, and symptoms through 24 months demonstrating durability of benefit Full data set released at APA annual meeting in May Study endpoint What it Measures Study Result Importance to Clinicians and Payers Remission - hardest to achieve Patient no longer depressed Highly statistically significant (p<0.01) Very important Response - difficult to achieve Patient feels a lot better Highly statistically significant (p=0.01) Very important Symptom Improvement - most likely to achieve Patient feels somewhat better Approaching statistical significance (p=0.1) Meaningful

Two Most Critical Endpoints are Response and Remission Influential Guidelines Emphasize Getting “Well” and not just “Better” Professional Guideline Statement American Psychiatric Association (APA) Depression Guidelines “The overall goals of treatment of major depressive disorder should focus on alleviating functional impairments and improving quality of life in addition to achieving symptom resolution and episode remission.” American College of Neuropsychopharmacology (ACNP) Consensus Statement “Treatments with a greater likelihood of attaining remission, a more rapid onset of remission, or a higher probability of sustaining remission have clear therapeutic advantages, given the implications of remission for function and prognosis.”

IMPACT Study Validates the Use of GeneSight in GAD Leads to Statistically Significant Better Outcomes GeneSight guided group had statistically significant reduction in GAD-7 scores 25% reduction in benzodiazepine use in patients receiving congruent therapy Net cost savings of $6,747 per patient from the MEDCO study 60 million people in U.S. have GAD; larger market than depression * Combinatorial Pharmacogenomic Testing Improves Generalized Anxiety Disorder Treatment Response and Decreases Benzodiazapine use

Vectra DA Outperforms Conventional Measures of Disease Activity 3x Better at Predicting Radiographic Progression Relative Risk of Radiographic Progression (High Versus Low Scores) n = 748 (p=0.23) (p=0.01) (p<0.0001) [1] LEIDEN: van der Helm-van Mil et al. Rheumatology (Oxford). 2013;53:839–846. [2] OPERA: Brahe et al. Arthritis Rheumatol. ACR 2016 Abstract 2520. [3] SWEFOT Year 1: Hambardzumyan K, et al. Ann Rheum Dis. 2015;74:1102–9. [4] SWEFOT Year 2: Hambardzumyan K et al. RMD Open. 2016 Mar 1;2(1):e000197. [5] Curtis et al. Arthritis Rheumatol. 2016 Nov 3. doi: 10.1002/art.39981 and Fleischmann et al. Arthritis Rheumatol. 2016 Dec 19. DOI: 10.1002/art.40021. 3x as Predictive as DAS28-CRP [1]-[5]

Vectra DA Again Outperforms Conventional Disease Activity Measures 4x Better at Predicting Radiographic Progression Radiographic Progression Likelihood Ratio* 4x as Predictive as DAS28 (p=0.079) (p=0.049) (p=0.04) (p=0.032) (p=3.6x10-4) n = 1,411 *F-Statistic [1] Curtis et al. Arthritis Rheumatology (2017;69 [1]

New 60,596 Patient Clinical Utility Study on Vectra DA Doctors Appropriately Modify Treatment Decisions Based Upon the Vectra DA Score (p<0.0001) (p<0.0001) Proportion of Patients That Changed Therapy Low (<30) Moderate (30-44) High (>44) 2.2x 2.6x

EndoPredict Outperforms Oncotype Dx® in Second Study EndoPredict Has >2x The Prognostic Power and Predicts Late Stage Metastases Prognostic Performance 0-10 Years Prognostic Performance 5-10 Years *Comparison of prognostic performance of Oncotype Dx RS versus EndoPredict in women with intermediate risk of recurrence by Nottingham Prognostic Index Oncotype Dx is a registered trademark of Genomic Health Inc. Likelihood Ratio x2

Submitted Supplemental PMA for HER2- Metastatic BrCa Expect Approval in 3Q18; Untested Population Represents 125,000 Women Diagnosed with or progress to metastatic disease HER2+ 40,000 HER2- 60,000 155,000 Two-thirds not currently eligible for hereditary cancer testing Don’t progress to metastatic disease 255,000 cases of invasive breast cancer

Worldwide Leader in Personalized Medicine We are entering the golden age for personalized medicine Molecular diagnostics are the keystone for improving patient outcomes while eliminating waste in healthcare spending Myriad is the pioneer of “research-based” and “education-centric” business model for molecular diagnostics We are the best positioned company to lead this revolution in healthcare Copyright © 2017 Myriad Genetics, Inc., all rights reserved. www.Myriad.com.