Q1 2025 Myriad Genetics Inc Earnings Call

May 6, 2025

Presentation, there will be a question answer session to ask a question. During the session you will need to press star one one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star one one again.

Samraat Raha: While we have had a disappointing start to the year, I'm as excited now as I was when I joined Myriad in December 2023, about the potential for Myriad, the potential for sustained profitable growth, gaining market share and positively impacting an increasing number of patient lives. The management team and I are now focused on unlocking that potential by ensuring we are pursuing a compelling strategy, strengthening our team and organizational capabilities and improving execution.

Please be advised that today's conference is being recorded.

Matt Scalf: I would now like to hand, the conference over to your Speaker today, Matt Scalf <unk> Senior Vice President of Investor Relations. Please go ahead.

Matthew Scalo: I'll now pass the call back over to Matt for Q&A. Thanks, Sam. And as a reminder, during today's call, we use certain non-GAAP financial measures.

Matt Scalf: Good afternoon, and welcome to the myriad genetics first quarter 2025 earnings call. During the call. We will review the financial results. We released today and afterwards, we will host a Q&A session. Our quarterly earnings release was issued this afternoon on form 8-K and can be found on our web.

Matthew Scalo: A reconciliation of the GAAP to non-GAAP financial results and a reconciliation of GAAP to non-GAAP financial guidance can be found in our earnings release and under the Investor Relations section of our website.

Please see the complete disclaimer at https://sites.google.com

Speaker Change: Site at Investor Dot myriad Dot Com <unk> senior Vice President of Investor Relations on the call with me today are Sam Rob, Our President and Chief Executive Officer, Scott <unk>, Our Chief Financial Officer, and Mark variety, our Chief operating officer.

Matthew Scalo: Now we are ready to begin Q&A. In order to ensure broad participation, we are asking participants to please ask only one question and one follow up.

Operator: Operator, we're now ready for the Q&A portion of the webinar. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Matt Scalf: This call can be heard live via webcast.

Matt Scalf: Cost at Investor Dot Marriott Dot com and a recording will be archived on our investors section of our website along with this slide presentation. Please note that some of the information presented today contains projections or other forward looking statements regarding future events or the future financial performance of the company. These.

Douglas Schenkel: Please stand by while we compile the Q&A raw Q&A Our first question comes from the line of Doug Schenkel from Wolf Research. Hey guys, thanks for taking the call. So. Sam, as you acknowledged, it's a disappointing quarter. It's messy. And at a high level for many investors, there's just too many moving parts in the Myriad equation. You know, this quarter, it's weather, it's guideline, debates, it's divestiture impact, it's United issues. It's just a lot, especially given the history of the company.

Speaker Change: Good day and thank you for standing by. Welcome to the Marriott Genetics First Quarter 2025 Financial Earnings Conference Call.

Matt Scalf: Statements are based on management's current expectations and the actual events or results may differ materially and adversely from these expectations for a variety of reasons.

Matt Scalf: We refer you to the documents the company files from time to time with the SEC specifically the company's annual report 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.

Matt Scalf: From those contained in our projections or forward looking statements I will now turn the call over to Sam.

Samraat Raha: How long is it going to take for you to simplify this and to clean this up? I mean, if I think of your prepared remarks, you know, it's 20 minutes of lots of lots of moving parts for a company that's clearly struggling right now. How do you simplify it? How long is it going to take? And If you were to say, hey, these are the three most important metrics to just kind of simplify it for everybody, moving forward, what are those metrics? So that's a lot, but I think it's probably the biggest thing that's on everybody's mind right now.

Sam: Thanks, Matt Good afternoon, everyone and thank you for joining us.

While I am pleased to lead my first earnings call as President and CEO, We had a challenging first quarter with revenue of $196 million at the lower end of our first quarter target range, representing a decline of 3% year over year.

Sam: Strength in our prenatal and oncology my risk tests were offset by softness in volume for gene site unaffected hereditary cancer tests.

Samraat Raha: And then my follow-up is really on Genesight. Back in November, you talked about this being a $40 million headwind. What is it now?

Sam: If we exclude the United Health care impact of gene site, the revenue associated with the Endo predict divestiture and the onetime benefit from retroactive coverage by a large pair for one of our tests. The first quarter of 2024 total Q1 revenue grew 5% year over year.

Scott Leffler: I'm still not clear on what the guidance bridge is, in spite of having lots of slides on it. Mathematically, I don't know what the bridge is. So if you could walk us through what's United and what else is in there, that would be helpful.

Sam: In the quarter, we saw a strong performance for a number of our tests, including foresight and prequel, which had volume growth of 10% year over year and continued strong demand for our my risk tests for cancer patients part of our oncology business with test volume growth of 11% year over year ago period.

Samraat Raha: Yeah, thank you, Doc. I appreciate the questions. And, you know, let me start with the first two that you asked.

Samraat Raha: And then then I'll ask Scott to jump in as it relates to the gene site question. You know, our intention is, and I think I've shared this before, that we have an opportunity to really simplify the narrative and get really more focused on the things that really accelerate growth and are tied to the core of the company. Now, it's going to take a little bit of time, you know, I think the better part of several months, to do the work and gain that clarity and be able to share that in a more definitive way. I mean, what I can tell you in advance of that, again, is that we remain absolutely resolute on the importance of oncology.

Sam: However, we had softness in gene site test volume, which grew 2% year over year impacted by United Health care policy change related to head count reduction in marketing spend reallocation actions, we took in the quarter.

Sam: Test volume of my risk for screening of unaffected individuals part of our women's health business was flat year over year and reflects slower than expected ramp in testing volume from our breast cancer risk assessment program and from customer sites that have had EMR integrations.

Samraat Raha: It's the cornerstone of what is Myriad and really being able to serve that fuller continuum of cancer care all the way from screening through to therapy selection and ultimately MRD, other things that we're adding in both organically and inorganically through partnerships such as Pathomic, we know that that remains at the heart of where Myriad goes.

Mark: Mark will share more about these challenges in his section.

Mark: While we are actively working on actions to increase volume for gene site in my risk for unaffected individuals we are projecting softer than planned volume for both of these tests and consequently have updated our 2025 financial guidance.

Mark: Our annual revenue by $35 million from the prior midpoint and reduced opex by $25 million from the prior midpoint.

Samraat Raha: And while I appreciate, you know, the different parts of the business, including gene set and the resiliency it's showing in the face of the UnitedHealth headwinds, you know, there really are, you know, sacred cows, and we're going to look, you know, beyond oncology, we're going to be looking at everything to really look at the best way to prioritize the way that we can focus our efforts and grow in a predictable, profitable way. And so that's, you know, that's the timeline. And that's a little bit of the process, you know, probably going into. Thank you.

Mark: Scott will share more about our updated guidance in his section.

Mark: We have started taking deliberate steps to reduce our overall projected spending while prioritizing investments and resources on driving 2025 revenue in high value new product development, including precise them Andi and AI enabled Polaris.

Before I transition to Mark I want to update you on the progress, we're making on our new product pipeline.

Mark: First we're on track to launch first gene are combined carrier screening and Ips assay within the next couple of months next the precise them already positive clinical data was presented at the ACR Conference last week and additional clinical data will be presented at <unk> in June.

Mark: We are making progress on our path to launch our first MRV tests in the first half of 2026. Finally, we are on track to launch our first AI enabled Polaris test to support clinical decisions at the time of biopsy and partnership with <unk> by the end of this year.

Speaker Change: With that I'll now turn it over to our Chief operating Officer, Mark Friday Mark.

Turning to the first quarter first quarter total revenue declined 3% year over year, driven by the underperformance in gene site and my risk for the unaffected patients and our women's health channel.

Speaker Change: As I mentioned, our prenatal performance was a highlight in the quarter with revenue growth of 11% over the same period and 15% excluding the peak we.

Speaker Change: We saw healthy demand across both our carrier screen and Ips lines and continued traction from our mid fourth quarter launches prequel at eight weeks gestational age.

Speaker Change: Our hereditary cancer revenue was down 2% for the quarter, we saw positive growth in our oncology channel, although our hereditary business and our women's health channel.

<unk> to be impacted by an EMR integrations ramping slower than expected.

Speaker Change: We have system integrations across 15, plus different vendors, including strategic partnerships with Athena epic and Flatiron.

Addressing workflow disruptions account by account that can take several quarters to stabilize.

Speaker Change: Example, we recently met with epic to integrate our my gene history assessment into our epic integrations to better identify patients that qualify for hereditary cancer testing and improving the provider experience. We have also identified a handful of other workflow improvements that we have activated our teams to address over the coming quarters, while this situation.

Speaker Change: <unk> to be a headwind to volume growth. This year, we are optimistic about addressing these challenges in the coming quarters.

Speaker Change: In addition, we continue to see positive momentum from our breast cancer risk assessment programs that were implemented however, they're not at scale yet to materially impact the overall hereditary cancer performance.

Speaker Change: Turning to gene side revenue was down 20% year over year due primarily to the anticipated impact of United Healthcare coverage policy change effective January one.

Speaker Change: <unk> test volumes grew 2% over a year ago period impacted by our actions to reduce resources in this area during the first quarter moving.

Speaker Change: Moving to oncology.

Speaker Change: <unk> remains the gold standard in the market for hereditary cancer testing building on this cornerstone of our strategy in oncology remains to serve the continuum of patient care from screening to therapy selection to monitoring and therapy adjustment for the most prevalent cancer indications.

Speaker Change: In the first quarter total oncology revenue declined 2% over the first quarter of 2024, my risk effective test volume was a highlight with a 11% year over year volume growth.

Speaker Change: Although effective hereditary cancer testing also continued to see headwinds from further anticipated declines in Brac CTX testing.

Speaker Change: Shifting to prostate cancer Polaris revenue in the first quarter decreased 2% year over year similar to our performance in the fourth quarter of 2024.

Puneet Souda: Our next question comes from the line of Puneet Souda from Lyrinc Partners. Yeah, hi, guys. Thanks for the question here.

Speaker Change: Overall demand remains consistent with 2024 trends in our view remains that the confusion over the updated <unk> guidelines will not create any meaningful headwinds for testing volumes. Our updated 2025 revenue guidance reflects no change to our Polaris assumptions.

Scott Leffler: So maybe I'll continue with Genesight, just given the focus here and the challenge you're seeing. I mean, since the United announcement, could you update if you have heard from other pairs or policies with respect to the test? My question is, is the guide contemplating only United, or are you expecting other pairs to step away and not cover the test? I mean, I think you would agree that currently the market and the pairs are under more pressure than ever before, and they're looking for savings. Some areas of diagnostics might just give them that. So I just want to understand what is in the guide and in terms of other pairs, what are you contemplating?

Speaker Change: I would like to emphasize again that Polaris is included in the <unk> prostate cancer guidelines for low intermediate and high risk patients at the time of initial biopsy.

Speaker Change: Are there more every task the urology market that Polaris competes with has the same end CCN category to a level of evidence.

Speaker Change: <unk> also state the need for Germline and tumor profiling testing for certain prostate cancer patients and now that we have added <unk> AI technology platform to our portfolio myriad will be the only company that will offer AI biomarker germline and tumor profile testing.

Speaker Change: Moving to our women's health business.

Mark Verratti: And then the second part of my question is, with respect to the providers, the physicians that are prescribing this test, are you seeing any changes in the behavior in terms of the prescription patterns just because of United and pairs not covering? I'm just asking this because we're potentially maybe heading into a recessionary environment, and if that is the case, the patient pay might decline further.

Speaker Change: In the first quarter women's health delivered $87 million of revenue an increase of 4% over the prior year period.

Speaker Change: Prenatal testing was a highlight with 11% revenue growth year over year as we continue to sell deeper into current accounts and win new accounts, we continue to see growing traction from the Q4 launch of prequel eight weeks and believe this task will continue to support our positive growth moving forward.

Speaker Change: The strength in pre Dana was partially offset by the weakness in unaffected hereditary cancer testing, which I mentioned earlier. However, our women's health team continues to see positive traction in hereditary cancer testing from our partnerships with J screen and cancer care, we remain optimistic about the potential contribution to overall growth from EMR integration and <unk>.

Mark Verratti: Hey, Puneet, thank you for the questions.

Scott Leffler: Scott, if you could take the first part of that, and then I think related to the providers and so forth.

Scott Leffler: Mark, if you could take that part. Sure. So the first part of the question related to coverage, and I know you're asking primarily about Genesight, but I think there was a little bit of the question that maybe had a carryover around the environment for coverage and reimbursement for our other products. I'll maybe make a directional comment on those as well. But first, with respect to Genesight specifically, I'll reiterate what we had said when the news around United was first unfolding, which was that we had no reason to expect that United's coverage determination would have any impact on coverage for any other payer.

Speaker Change: Cancer risk assessment program implementations.

Speaker Change: Turning to pharmacodynamics in the first quarter <unk> revenues were 31 million impacted by Unitedhealthcare coverage policy change effective January one we continue to work with Unitedhealthcare, which include submitting additional data such as the increased economic utility data recently published in the journal of clinical Psychopharmacology.

Speaker Change: Well as more data to follow in the second half of the year.

Speaker Change: Our team continued to drive expansion of ordering provider base, which is over 30000 providers in the quarter I am proud of our gene site team that continues to drive growth and focus on the unmet need in mental health care treatment. Our strategy for gene site growth includes continuing our highly effective digital engagement from driving provider and patient awareness.

Scott Leffler: Now, of course, it's not of the same magnitude as United coverage, but it's consistent with our general theme that we've been talking about since the beginning of last year, which is that generally we continue to see constructive opportunities to continue to build out the coverage universe for Genesight. And that general theme also, of course, throughout all of last year and so far this year, is also applicable to generally the rest of our product portfolio. And I mentioned this in my prepared comments, that generally when you look at kind of underlying current period rates, outside of the headwind items that we specifically called out, we see a very favorable rate environment where we've been able to maintain the positive rate momentum that we had in 2020.

Speaker Change: To provide two provider onboarding.

It also includes optimizing patient direct payment options and optimizing revenue cycle workflows to maximize reimbursement.

Speaker Change: I will now turn the call over to our CFO Scott Leffler.

Scott Leffler: Thanks, Mark I'll start with a recap of our Q1 consolidated financial results for the first quarter, we reported a 3% year over year decline in revenue with test volume up 1%, but average revenue per test down 4%.

The underlying current period rate environment remains stable and consistent with the favorable performance we saw throughout 2024.

Scott Leffler: The decline in overall revenue per ton reflects the absence of any meaningful contribution from prior periods in the first quarter of 2025 compared to a $7 million benefit in the first quarter of 2024, which resulted from positive change of estimates as well as the onetime benefit from a payer who implemented coverage of one of our products on.

Scott Leffler: And based on a number of rev cycle and payer markets initiatives, we're optimistic that we'll be able to continue to make more progress in 2025.

Mark Verratti: Mark? Yeah, to answer the second part of the question, we are not seeing any meaningful change in our in our providers. If anything, I think the market uncertainty, unfortunately, continues to drive the need for a test like GeneSight because the mental mental illness is not going away anytime soon. I would say, as we saw within our, as we mentioned in our remarks, we did reduce spend in Q1 because of the UHC decision. And so that did have an impact and it will have an impact going going throughout the year. But as far as providers reacting to any payer coverage, we're not seeing that.

Scott Leffler: On a retroactive basis.

Scott Leffler: In addition, Q1 rates were unfavorably impacted by the change in United Healthcare policy with respect to <unk> coverage.

Notwithstanding the headwind items the stability in underlying rates across our portfolio represents another proof point for the great work being done by our revenue cycle and payer markets teams along with others throughout the company.

Scott Leffler: As Mark pointed out the prenatal testing business saw the strongest growth in the first quarter with revenue increasing 11% year over year, our pharmacogenomics business saw revenue declined 20% year over year due to the impact of BMO that health care coverage decision and our reallocation of commercial resources to other product lines.

Mark Verratti: But that said, we need to be really mindful that we're focusing on driving growth that is that is profitable and not just and not just driving growth that's going to continue to increase zero pay. Okay, thank you.

Scott Leffler: Even with the Q1 revenue decline, we were able to expand our gross margins by 50 basis points delivering a 69% gross margin. This.

Samraat Raha: And then if I could just follow up with Sam.

Scott Leffler: This year over year improvement reflects lab efficiencies and is a testament to the power of our scalable business model.

Puneet Souda: Sam, as you have been at Myriad for some time, and now, you know, obviously in the head role, can you elaborate a little bit as to how you think about this portfolio? Is this the right portfolio? I think that's been a, you know, major question for Myriad for a very long time. And the tests that have been added have some challenges or the other, you know, every year we run into them, either if it's hereditary or a gene site.

Scott Leffler: First quarter adjusted operating expenses increased minimally year over year and reflect the balance between greater investment in R&D and cost controls across SG&A.

Scott Leffler: We continue to focus on striking the right balance between investment for future growth and profitability.

Scott Leffler: In addition, I wanted to call out an income tax benefit of $29 $3 million, we recognized in the first quarter.

Samraat Raha: Can you elaborate on the portfolio and if there's room for divestiture here? You know, thank you again, Puneet, for the question. I mean, it's similar, Douglas, I think, going in that direction, too. I think that, again, while there'll be some time to be taken, I think it's a prudent thing to do, while doing it quickly, to make sure we do the thoroughness and looking at our strategy to understand and make decisions. What I can tell you, again, is we are absolutely resolute on oncology, right? And there, too, you know, we'll provide more clarity, though we had, you know, underperformance compared to what we'd expected or wanted in unaffected hereditary cancer.

Scott Leffler: This benefit is largely excluded from non-GAAP EPS. It is especially noteworthy and it is expected to result in approximately $13 million of cash tax refunds and interest payments to the company anticipated to be received in the next few quarters.

Scott Leffler: Next we will take a deeper look at the unusual items impacting our year over year revenue trajectory to provide a better sense for performance of the underlying business.

Speaker Change: While revenue in Q1 of this year compared to Q1 of 2024 declined 3%. You've also heard both mark and Sam reference a first quarter, 2025% revenue growth rate of 5% after adjusting for the impact of those three key items on our Q1 of 'twenty four baseline.

Speaker Change: Health care has impact on gene site of $10 million, the divestiture of our endo predict European business of $3 million and the Q1 2020 for benefit of $3 million from the payer who granted retroactive coverage to one of our products.

Samraat Raha: We think it's programmatic. It's more execution-related, which we're working to fix. It's just a matter of how long that takes. As a reminder, hereditary cancer for unaffected is, you know, almost a $4.5 billion market that's growing at high single digits. We are the leaders there, and there's a significant opportunity that remains, and it's for ours to go get. And it's just about the execution, which we can go into more.

Speaker Change: By doing so we're able to show what we considered to be a clearer view to myriad underlying performance trends.

Speaker Change: Next I'll discuss profitability cash flow and liquidity.

Samraat Raha: But, you know, beyond that, I think it's, you know, we're going to go through the rigor to really look at and say, you know, we are myriad the way we are and how we got here. But, you know, what are the pieces going forward so that that really support our best ability to grow in a predictable, profitable way, compete, and win in the market? Maybe those sound like a lot of obvious words, but behind it is the conviction to really be thorough and make choices to help support our go forward. So with each just a little bit of, I appreciate just a little bit of time for the management team and I to work through that.

This year Q1, adjusted EBITDA was near breakeven.

Speaker Change: First quarter is typically a heavier cash burn quarter and adjusted operating cash flow was a usage of approximately $10 million we.

Speaker Change: We finished Q1 with $92 million of cash and cash equivalents and $42 million available under our revolver subject to ongoing requirements.

We believe that our liquidity will be sufficient to meet our projected operating requirements through 2025, but we plan to continue to evaluate opportunities to further strengthen the balance sheet to ensure our multi year liquidity runway.

Samraat Raha: And, you know, we'll have some clarity for ourselves and more that we can share by Q4.

Speaker Change: Next I'll cover our updates to full year 2025 financial guidance.

Puneet Souda: Okay, I appreciate it. Thanks for covering those.

Speaker Change: For the full year 2025, we are updating the financial guidance that was previously issued in February.

Operator: You're welcome. Thank you.

Operator: One moment for our next question.

Speaker Change: We now expect annual revenue of 807 million to $823 million.

David Westenberg: Our next question comes from the line of David Westenberg from Piper Sam. Hi, thank you for taking the questions here. So just regarding the slower ramp on the unaffected population or unaffected testing and hereditary cancer due to EMR integration, sorry. Us on the sell side, we are us investors, you know, we really don't know the kind of nuts and bolts and why this would kind of take multiple quarters to kind of integrate and what this kind of disruption looks like. So can you give us a flavor for, you know, just a little bit more details on why you're certain this is the problem, why you're certain, you know, it's going to take a couple more, why it's going to take a couple more quarters to fix and, you know, what that business can grow at.

Speaker Change: A gross margin range of 68, 5% to 69, 5%.

Speaker Change: And adjusted Opex of between $555 million and $565 million.

Speaker Change: This resulted in adjusted EPS of between a loss of <unk> <unk> and.

Speaker Change: And the gain of <unk> <unk> for full year 2025.

Speaker Change: We are also targeting adjusted EBITDA of between 19 million and $27 million.

Speaker Change: We are not providing quarterly guidance, but as you think about the revenue trajectory. During the rest of 2025, we are expecting modest sequential increases each quarter.

Speaker Change: This new revenue range reflects the impact of our reallocation of commercial resources away from gene site and towards other products as well as the slower than anticipated ramp and volume contributions from a number of initiatives referenced by Salman Mark impacting unaffected hereditary cancer testing volumes.

Samraat Raha: And, you know, again, I'm looking at this, this unaffected population, you know, volume was down 4%, volumes were flat. So I just want to make sure that that's just mixed and not kind of lower payments or a lot more non no coverage there. We'll have a one short follow up.

Speaker Change: A new Opex range is reflective of deliberate steps to reduce discretionary spend without compromising our commitment to strategic growth investments in key areas, such as our commercial organization and new product development.

Mark Verratti: Hey, Dave, thank you for the question. I'm glad you asked. It allows us to actually provide some detail, which I think will be helpful for many others on the call. And, by the way, the two drivers, and I'll hand it over to Mark to really kind of go into a little bit more detail here. You know, along with the EMR, it's also just, you know, the time to the traction from our breast cancer risk assessment program. We've seen some early, you know, good, you know, good results. It's the ability to scale that, too. So, Mark, you know, please provide some more.

Phil: Now, let me turn the call back to Phil.

Thanks, Scott I want to reiterate that we understand the challenges we faced in 2025 that we've activated plans to overcome these challenges and our guidance reflects this.

Phil: I'd like to end by sharing a framework that we're using to lead myriad success going forward.

Phil: Simple and based on three elements compelling strategy strong team and organizational design and execution excellence in.

Mark Verratti: Yeah, sure, Dave. Let me provide a little bit of clarity and try to give an example related to EMR. And, first, I want to thank our EMR teams, which has been a very cross-functional group of folks within Myriad that have been actively working on this over the last 18 months. And I would say there are some positives. So, when you think about our prenatal business or you think about the hereditary cancer business, on the affected side of the equation, a lot of EMR integrations just have to do with the ability to order a Myriad test, right?

Phil: In terms of strategy, we have started looking across everything we do to determine what will best enable us to maximize profitable growth and to increase our market share by leveraging our differentiated capabilities.

Phil: While our strategy refresh will take several months, we are resolute on oncology remaining the cornerstone of myriad.

Phil: And a critical part of our go forward strategy will continue to be meaningfully serving the cancer care continuum screening to therapy selection treatment monitoring with our portfolio of testing products.

Mark Verratti: You can't just simply go into Epic and press a button and to be able to order the test. What we see across all of our accounts, though, is, from a workflow perspective, on the unaffected side, so patients who do not have cancer, it really starts with an ability to do a family history, which is a series of asking a lot of different questions around relatives. I'm sure you've filled those out in the past. And, ideally, that is a feature that needs to be added into the EMR workstream so that that process is not manual. Also, in many cases, when you think about an unaffected population, many cases those appointments are being done virtually.

Speaker Change: In terms of team I'm excited to have Mark Friday stepping into the CFO role and being able to leverages deep understanding of our customers and our company and to have Brian Donley, joining us as our new CFO and being able to leverage this proven commercial expertise and experience domain knowledge.

Speaker Change: Over the last few months. We've also added key talent in strategic areas, including Hussein <unk> as SVP of oncology, R&D, and Lew well above as SVP of our Biopharma services and CTX business.

Mark Verratti: So the idea that also a feature built within the EMR would require pushing a button and having a kit shipped virtually. Secondarily, many of those patients require patient education because, once they get the results, it's not as clear, again, within the prenatal world or within the affected side. It is a very clear answer. On the unaffected side, what do they do now that they see a number that says that they have a higher risk, right? What are their options? What is that report telling them? And so, in many cases, we need to make sure that it's either plugged into the Myriad genetic counselors or it's plugged into the account patient education materials.

Speaker Change: In terms of execution excellence areas, we will focus on strengthening include product development and commercial launch planning.

Speaker Change: While we have had a disappointing start to the year I'm as excited now as I was when I joined <unk> in December 2023 about the potential for myriad to potential for sustained profitable growth gaining market share and positively impacting an increasing number of patient lives the management team and I are now.

Speaker Change: <unk> on unlocking that potential by ensuring we are pursuing a compelling strategy strengthening our team and organizational capabilities and improving execution.

Mark Verratti: And so those workflows, what we've seen in working with our accounts, are challenge points. And so we've systematically identified those accounts. We're going back. We're making sure that we're building on those features. The example that I called out in the prepared remarks is actually working with Epic to build a digital cancer risk assessment so that it would be built into the Epic platform, which would not only help the accounts that we've already enrolled, but would also be a feature that we could utilize moving forward as well with new accounts that we onboard. But, again, that is going to take us some time because, once we build those solutions, we now need to sort of get back in the queue with all those accounts so that those tech teams can also enable them on their side.

Matt Scalf: I will now pass the call back over to Matt for Q&A.

Matt Scalf: Thanks, Sam and as a reminder, during today's call we use certain non-GAAP financial measures a reconciliation of the GAAP to non-GAAP financial results and a reconciliation of GAAP to non-GAAP financial guidance can be found in our earnings release and under the Investor Relations section of our website now we are ready to begin Q&A.

Matt Scalf: In order to ensure broad participation. We are asking participants to please ask only one question and one follow up operator, we're now ready for the Q&A portion of our call.

Matt Scalf: As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again, please standby, while we compile the Q&A roster.

Mark Verratti: So I hope that provided a little bit of clarity. Oh, go ahead. Sorry.

Scott Leffler: Well, I think there was one other part of your question, which was around the fact that volumes were largely flat, but revenue was down somewhat. And I'll just say that there has been no deterioration in terms of the underlying rate environment, in terms of coverage or no pay or reimbursement cycle for that category of testing. Overall, we continue to see encouraging developments and positive momentum. There's some amount of adverse mix, just in terms of payer mix, and there's always going to be some ebb and flow to that. And then in the prior year period, you had some amount of favorability from change of estimates that did not favorably impact this year.

Speaker Change: Our first question comes from the line of Doug Schenkel from Wolfe Research.

Doug Schenkel: Hey, guys. Thanks for taking the questions. So.

Doug Schenkel: Sam as you acknowledged it's a disappointing quarter, it's messy and at a high level for many investors.

Doug Schenkel: There's just too many moving parts and the myriad of equation.

Doug Schenkel: This quarter, its whether its guideline debates divestiture impact it's United issues.

Scott Leffler: But there's always going to be some amount of movement from that type of thing, and it is not a reflection on the health of the underlying rate environment. Gotcha.

Speaker Change: Gaining market share and positively impacting an increasing number of patient lives. The management team and I are now focused on unlocking that potential by ensuring we are pursuing a compelling strategy strengthening our team and organizational capabilities and improving execution.

Doug Schenkel: It's just a lot, especially given the history of the company.

Doug Schenkel: How long is it going to take for you to simplify this.

David Westenberg: No, thank you very much.

David Westenberg: And just, I'll just ask my shorter follow up then because you guys did give me a lot of time here. In just in terms of Polaris down 2%, what one rate were you at prior to the NCCN guidelines? And what's your best assessment of what the market growth would look like? We're just kind of trying to get a sense of, you know, Comfortability with the down being 2% being business as usual, and then, you know, market growth rates.

Doug Schenkel: Clean this up I mean, if I think of your prepared remarks.

Doug Schenkel: It was 20 minutes of lots of lots of moving parts for a company. That's clearly struggling right now how do you simplify it how long is it going to take and if you were to say like Hey. These are the three most important metrics to just kind of simplify it for everybody moving forward what are those metrics. So that's that's a lot, but I think it's.

Matt: I'll now pass the call back over to Matt for Q&A.

Matt: Thanks, Sam and as a reminder, during today's call we use certain non-GAAP financial measures a reconciliation of the GAAP to non-GAAP financial results and a reconciliation of GAAP to non-GAAP financial guidance can be found in our earnings release and under the Investor Relations section of our website now we are ready to begin Q&A.

David Westenberg: So say when you stabilize it, you know what that might look like is essentially what I'm trying to get at. And thank you very much for all the details. Yeah, you're welcome, David.

Doug Schenkel: Probably the biggest thing that's on everybody's mind right now.

Speaker Change: And then my follow up is really on gene site back in November you talked about this being a 40 million dollar headwinds.

Matt: In order to ensure broad participation. We are asking participants to please ask only one question and one follow up operator, we're now ready for the Q&A portion of our call.

Samraat Raha: Maybe I'll start there. And, you know, we have been in a very competitive situation, as you know, with Decipher and Verisight. And, you know, it's relatively stable. So that's our perspective on how this year, how we expect it to be. But when we, you know, through the actions we are taking, by the way, we're not standing still and just waiting for the partnership with Potomac to develop our first AI-enabled test, which will definitely put us in a better place. Along the way, we're also, you know, now making advances on getting Simon Level 1 evidence in place.

Doug Schenkel: What is it now.

Doug Schenkel: Still not clear on what the guidance bridges in spite of having lots of slides on it mathematically I don't know what the branches. So if you could walk us through what's United and what's out what else is in there that would be helpful. Thank you.

Matt: As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again, please standby, while we compile the Q&A roster.

Speaker Change: Yes. Thank you Doug I appreciate the questions and.

Speaker Change: Let me start with the first two that you asked and then I'll ask Scott to jump in as it relates to the <unk> question.

Matt: Our first question comes from the line of Doug Schenkel from Wolfe Research.

Speaker Change: Our intention is and I think I've shared this before that we have an opportunity to really simplify the narrative and get really more focused on the things that really accelerate growth.

Doug Schenkel: Hey, guys. Thanks for taking the questions. So.

Mark Verratti: You know, the work now with Potomac accelerates that by a year to year and a half. You know, in terms of commercial teams, we've added folks, we've actually prioritized, clarified the message, we're starting to see traction there. And before maybe I turn it over to Mark, you know, I think that that market we see as a, you know, low double-digit growth market, at least, and that's the opportunity to resume and get back to, you know, competing and winning that share. And actually part of the Potomac partnership allows us to bring a product to market in post-RP, where we don't even participate today.

Speaker Change: Sam as you acknowledged it's a disappointing quarter, it's messy and at a high level for many investors.

Speaker Change: To the core of the company now.

Speaker Change: It's going to take a little bit of time.

Speaker Change: I think the better part of several months to do the work and gain that clarity.

Speaker Change: There's just too many moving parts and the myriad equation.

Speaker Change: And be able to share that in a more definitive way I mean, what I can tell you in advance of that again is that we remain absolutely resolute unimportance of oncology. It's the cornerstone of what is myriad and really being able to serve that floor continuum of cancer care.

Speaker Change: This quarter, its whether its guideline debates divestiture impact it's United issues.

Speaker Change: It's just a lot, especially given the history of the company.

Speaker Change: How long is it going to take for you to simplify this.

Speaker Change: All the way from screening through to therapy selection can ultimately mardi.

Speaker Change: Clean this up.

Speaker Change: If I think of your prepared remarks.

Samraat Raha: It's a complete blue ocean, right? Because our Polaris solution today is, you know, for the majority part, it's for, you know, time of biopsy. But I said a lot there, Mark. You said a lot. Yes, I did. And I just kind of got going.

Speaker Change: It was 20 minutes of lots of lots of moving parts for a company. That's clearly struggling right now how do you simplify it how long is it going to take and if you were to say like Hey. These are the three most important metrics to just kind of simplify it for everybody moving forward what are those metrics. So that's that's a lot, but I think it's.

Speaker Change: Other things that we're adding in both organically and inorganically through partnerships with just the filmic.

Speaker Change: No that that remains at the heart of where myriad goes well I appreciate the different parts of the business, including gene said the resiliency it's showing.

Matthew Sykes: No, I'm not sure there's much to add there, unless that didn't answer the question. So let me just ask. I think Dave may be offline. Okay. All right. Thank you. Yeah. Thank you.

Speaker Change: In the face of the Unitedhealth headwinds there really are no sacred cows, and we're going to look.

Speaker Change: Probably the biggest thing that's on everybody's mind right now.

Speaker Change: And then my follow up is really on gene site back in November you talked about this being a 40 million dollar headwinds.

Speaker Change: And oncology, we're going to be looking at everything we look at the best way to prioritize the way that we can focus our efforts and grow in a predictable profitable way.

Scott Leffler: Our next question comes from the line of Matt Sykes from Goldman Sachs. Hey guys, thanks for taking the question you got Will on for Matt here, just wanted to dig a little more into the cost savings side of the guide. I know you mentioned it would be on discretionary spending rather than the pipeline or commercial organization, but any more detail you can provide on what's being cut there would be super helpful.

Speaker Change: What is it now.

Speaker Change: Still not clear on what the guidance bridges in spite of having lots of slides on it mathematically I don't know what the bridge is so if you could walk us through whats the United and what's out what else is in there that would be helpful. Thank you.

Speaker Change: So that's that's the timeline and thats, a little bit of the process probably going into.

Speaker Change: Late Q3, Q4, before we have the absolute clarity and it doesn't mean, we're not executing in a moment, we'll take opportunities to provide more clarity even as we go.

Speaker Change: Yes. Thank you I appreciate the questions and.

Speaker Change: Let me start with the first two that you asked and then I'll ask Scott to jump in as it relates to the <unk> question.

Speaker Change: As it relates to maybe I'll take your second question and talk a little bit about catalysts, what should you look at for myriad.

Scott Leffler: You know, let me start. Thank you for the question.

Scott Leffler: I'll hand to Scott. Yes, it's true, right? There are some big levers that we're, that we've already started to take, including incredibly careful, you know, any additions of headcount, really holding steady on that, being very deliberate, of course, on the traditional things on, you know, any travel, entertainment, all those categories. And then there's, you know, other spend related to, you know, programmatic things, be it research, studies, or, excuse me, when we're actually doing market studies and other things that we may be using consultants for to really be deliberate and focus it elsewhere for growth.

Speaker Change: Terms of knowing that we're making progress on our new journey on a new chapter.

Speaker Change: Go back to the framework that I that I shared in my prepared comments alright, well. So strategy. One we just addressed that I guess as part of your question. We are looking to gain that clarity, which will provide us the focus timeline on that again is over the next several months late Q3 into Q4 in terms of <unk>. It is about <unk>.

Speaker Change: To the core of the company now.

Speaker Change: It's going to take a little bit of time.

Speaker Change: I think the better part of several months to do the work and gain that clarity.

Speaker Change: The team that has the right combination of domain knowledge execution ability.

Scott Leffler: But Scott, please kind of take it from there. Yeah, I'll just remind you that on the last call, we also talked about a reprioritization of spend, because even our initial or previous guidance for OPEX was at a level that was kind of below the historical level of OPEX investment. And what we were really pleased to be able to communicate on the last earnings call was the fact that we were able to reprioritize spend in order to continue to invest in the more strategic parts of the business, which includes things like the EMR integrations that we have ongoing, which includes the product development efforts that we continue to prioritize, along with incremental investments in the commercial organization.

Speaker Change: <unk> that we need.

Speaker Change: I'm very happy about Mark and his role in adding Brian to the team and others that we are in a very deliberate way that we're adding to the team. So theres more work to think about how in terms of organizational design, we will be more effective but that those are milestones to continue looking for and third I think it is about it is about execution. So when you look too.

Speaker Change: All the way from screening through to therapy selection and ultimately Mardi.

Speaker Change: Things that we're adding in both organically and inorganically through partnerships such as Potomac, We know that that remains at the heart of where myriad goes.

Speaker Change: Well I appreciate the different parts of the business, including gene side, the resiliency, it's showing.

Speaker Change: In terms of.

Speaker Change: Catalyst one of course that we're able to meet our updated financial guidance.

Speaker Change: In the face of United Health headwinds, there really are no sacred cows, and we're going to look beyond oncology, we're going to be looking at everything we look at the best way to prioritize the way that we can focus our efforts and grow in a predictable profitable way.

Speaker Change: That you look at Polaris volume, we didn't explicitly call that on the prepared remarks, but that's relatively.

Speaker Change: Steady throughout the year that for our unaffected hereditary cancer, which is an important part of our growth narrative that it returns to growth.

Scott Leffler: And we continue to be comfortable that we can fund those strategic investments by being more efficient in other parts of the OPEX infrastructure in the way that Sam was describing. That's helpful.

Speaker Change: And so that's that's the timeline and thats, a little bit of the process probably going into.

Speaker Change: Within the year, and then I think we have an opportunity to reset and be.

Speaker Change: Late Q3, Q4, before we have the absolute clarity and it doesn't mean, we're not executing in a moment, we'll take opportunities to provide more clarity even as we go.

Consistent with being able to meet our own timelines that are important particularly on these high value.

Scott Leffler: And then, and then as a follow up.

Scott Leffler: On the RCM initiatives, you guys were early to optimizing those processes, and you've talked about the underlying rate environment being relatively stable today, but how much benefit is left for future improvement in RCM, and what are you guys doing to unlock those opportunities? Yeah, great question. Scott, I know there's more room and we're very actively working on that in a programmatic approach. So maybe you can provide some more. Yeah, so as a reminder, last year, we talked about this throughout the year, we had come into 2024 with a no pay rate that was around 46%.

Speaker Change: Products that we intend to launch starting with first gene, which is again this combination nics carrier screening assay.

Speaker Change: As it relates to maybe I'll take your second question and talk a little bit about catalysts, what should you look at for myriad.

Speaker Change: Being able to bring that to market by the end of July.

Speaker Change: Then Polaris with pride the Potomac AI enabled test first product.

Speaker Change: Terms of knowing that we're making progress on our new journey and our new chapter.

Speaker Change: Go back to the framework that I that I shared in my prepared comments Alright, Lasalle strategy. One we just I address that I guess as part of your question. We are looking to gain that clarity, which will provide us the focus.

Speaker Change: So at the time of biopsy the end of 2025.

<unk> expanded panel by the end of 2025 as well in <unk> with the first assay available for clinical use in the first half of 2026. So those are some of the catalysts that Scott Let me turn it over to you to answer the question about gene site and the headwind for sure.

Speaker Change: Online on that again is over the next several months late Q3 into Q4 in terms of <unk>. It is about having the team that has the right combination of domain knowledge execution ability.

Speaker Change: Thanks.

Scott Leffler: And we finished 2024 with a no pay rate that was around 44% or 43%. And so that incremental improvement throughout 2024 really had a significant impact on our overall ASP environment coming into 2025. But really, when you take a step back, the amount of no pay, just the sheer volume of no pay that remains for us to go after is tremendous. And so we continue to see a very sizable opportunity there. And we do continue to make investments in our road cycle and payer markets organization in order to tap into more of that opportunity over time, including within 2020 calendar year 2025.

Doug Schenkel: Doug as we mentioned in our prepared remarks, there was a $10 million revenue headwind in the first quarter relating to the change in United's coverage of gene site. As a reminder, what we've talked about when the news with FERC developing around United coverage. There were two components to the change when component related to United commercial policies.

Speaker Change: <unk> that we need.

Speaker Change: I'm very happy that Mark and his role in adding Brian to the team and others that we are in a very deliberate way that we're adding to the team. So theres more work to think about how in terms of organizational design, we will be more effective but that those are milestones to continue looking for and third I think it is about it is about execution. So when you look too.

Doug Schenkel: Active on January one and Thats, what is driving that $10 million headwind in Q1.

Doug Schenkel: There is a.

Doug Schenkel: An incremental amount that's much smaller the begin in March which related to United to managed Medicaid plans that the full effect of which is not seen in the Q1 numbers yet.

Speaker Change: In terms of.

Speaker Change: Catalyst one of course that we're able to meet our updated financial guidance.

That you.

Speaker Change: Look at Polaris volume, we didn't explicitly call that out in the prepared remarks, but it's relatively steady.

Doug Schenkel: But generally what I would say is that $10 million headwind that we saw in Q1 is in line with the overall estimates that we had given for the full year impact.

Scott Leffler: Thanks guys, appreciate the color.

Speaker Change: Steady throughout the year that for our unaffected hereditary cancer, which is an important part of our growth narrative that it returns to growth.

Tejas Savant: Our next question comes from the line of Tejas Savant from Oregon. Hey guys, good evening and thanks for the time here. So maybe I'll start with one on the MRT side of things.

Doug Schenkel: Of course, the full impact of that is reflected in our guidance.

Doug Schenkel: Okay.

Speaker Change: Within the year, and then I think we have an opportunity to reset and b.

Speaker Change: Thank you.

Speaker Change: One moment for our next question.

Speaker Change: Consistent with being able to meet our own timelines that are important, particularly on these high value products.

Operator: Our next question comes from the line of Puneet <unk> from Leerink partners.

Samraat Raha: Following the data you guys showed at ACR and in renal, what should we expect at ASCO this year? And are you still on track to submit to multi-expert coverage in breast by year end? And then last bit of that question, you know, at ACR increasing point of focus has been higher sensitivity. So I'm just curious as to your thoughts on what is that threshold for landmark sensitivity that's needed for physicians to be comfortable in terms of using MRT to either escalate or deescalate treatment?

Speaker Change: Products that we intend to launch starting with first gene, which is again this combination nics carrier screening assay being able to bring that to market by the end of July.

puneet: Yes, hi, guys.

puneet: Thanks for the question here so maybe.

puneet: I'll continue with gene side.

puneet: Just given the focus here and the challenge you're seeing I mean simply United.

Speaker Change: Then Polaris with pride the Potomac AI enabled test first product.

Speaker Change: <unk> could you update if you have heard from other players or policies with respect to the test and then my question is that the guide is the guide contemplating only United are you expecting other payers to step away and not cover the test.

Speaker Change: So at the time of biopsy the end of 2025.

Speaker Change: My risk expanded panel by the end of 2025 as well in <unk> with the first assay available for clinical use in the first half of 2026. So those are some of the catalysts that Scott Let me turn it over to you to answer the question about gene site and the headwind sure. Thanks.

Speaker Change: I think you would agree that currently the market and the payers are under more pressure than ever before.

Samraat Raha: Thank you for the question, Tejas. There was a number of things you had in there. So let me start, let me try to answer that. So yeah, we are pleased by the study that was shared, the information that was shared by a collaborator, MD Anderson Cancer Center. And this was about, for those that might not be as familiar, about clear cell, renal cell carcinoma, and really showing that, you know, our ultrasensitive MRD test found that patients who tested negative three months after radiation avoided progression to more aggressive therapy for nearly 2.5 years longer than on average in patients who tested positive.

Speaker Change: As we mentioned in our prepared remarks, there was a $10 million revenue headwind in the first quarter relating to the change in the United coverage of <unk> se.

Speaker Change: And they're looking for savings some areas of diagnostics might just give them that so I just wanted to understand.

Speaker Change: As a reminder, what we talked about when the news with FERC developing around United coverage. There were two components to the change one component related to United commercial policies, which was effective on January one and Thats, what is driving that $10 million headwind in Q1, there is a.

What is in the guide and in terms of other payers. So what are you contemplating and then second part of my question is.

Speaker Change: With respect to the providers the physicians that are prescribing this test.

Speaker Change: Yes.

Speaker Change: Are you seeing any changes in behavior in terms of the prescription patterns, just because of United and Paris, not covering I'm just asking this because I'm hearing potentially maybe heading into a recessionary environment and if that is the case the patient pay my decline sort of there.

Speaker Change: An incremental amount that's much smaller the begin in March which related to United's managed Medicaid plans that the full effect of which is not seen in the Q1 numbers yet.

Samraat Raha: You know, the key is that, you know, we were able to help detect and determine in a clinical set of samples very clearly something that otherwise wouldn't be detected by traditional imaging, and that's very meaningful, you know, one of the first real clinical examples of the power of our performance. Now, in terms of, I think you also asked about ASCO, we're excited, you know, at ASCO overall to have, you know, multiple, seven submissions that were accepted related to, you know, Myriad Oncology products, including MRD products. There will be a podium presentation there by a collaborator, Dr. Hashimoto from NCC Japan, and he'll be talking about pan-cancer molecular MRD assessment using, you know, our assay for personalized clinical trials.

Speaker Change: But generally what I would say is that that $10 million headwind that we saw in Q1 is in line with the overall estimates that we had given for the full year impact.

Speaker Change: Hey, Puneet. Thank you for the questions. Scott if you could take the first part of that and then I think related to the providers and so forth Mark if you can take that part sure. So the first part of the question related to coverage.

Speaker Change: Of course, the full impact of that is reflected in our guidance.

Speaker Change: Okay.

puneet: I know you are asking primarily about gene side, but I think there was a little bit of the question that maybe you had a carryover around the environment for coverage and reimbursement for our other products I'll, maybe make a directional comment on those as well, but first of all with respect to gene cited specifically I'll reiterate what we had said when the news around United was first unfilled.

Speaker Change: Thank you.

Speaker Change: One moment for our next question.

Speaker Change: Our next question comes from the line of Puneet <unk> from Leerink partners.

puneet: Yes, hi, guys.

Speaker Change: Thanks for the question here so maybe.

puneet: I'll continue with gene side.

puneet: Holding which was that we had no reason to expect that.

puneet: Just given the focus here and the challenge you are seeing I mean simply United.

puneet: United's covers determination would have any impact on coverage for any other payer and what I would say is that in the months since then.

Announcements could you update if you have heard from other payers or policies with respect to the test and then my question is that the guide is the guide contemplating only United are you expecting other payers to step away and not cover the test.

Samraat Raha: So, there will be a panel, a CT-DNA panel, and it's going to actually, again, illustrate in a more broad set of cancers, you know, the benefit of our ultrasensitive assay in real-life samples, if you will. To answer your question on, I think, you know, maybe it's about sensitivity or what will really be important for clinicians that are choosing to use this product, again, just as a refresh. You know, for us, in MRD, you know, a point of differentiation, what's important is to focus in on cancers that are low-shedding, meaning they have very low parts in the blood of actual, you know, tumor CT-DNA that can be detected just by nature of those cancers.

puneet: His proven out we haven't seen any indication of a risk of a coverage across the rest of the peer universe that covers.

puneet: I mean that covers gene site and in fact more recently, we have had a couple of interesting wins in terms of incremental coverage, including one on the commercial side <unk> now of course, it's not the same magnitude as United coverage, but its consistent with our general theme that we've been talking about since the beginning of last year.

puneet: I think you would agree that currently the market then the payers are under more pressure than ever before and they're looking for savings and some areas of diagnostics might just give them that so I just wanted to understand.

Speaker Change: What is in the guide and in terms of other payers. So what are you contemplating and then second part of my question is.

puneet: <unk>, which is generally we continue to see constructive opportunities to continue to build out the coverage universe for <unk>.

Speaker Change: With respect to the providers the physicians that are prescribing this test.

puneet: And that general theme also of course throughout all of last year and so far. This year is also applicable to generally the rest of our product portfolio.

Are you seeing any changes in behavior in terms of the.

Samraat Raha: And again, for us, that's breast, ovarian, renal, prostate, and a number of other cancers. And what we found from working with clinicians and, you know, the more than 15 different MRD studies that are underway and all the dialogue that we've had, that being able to detect consistently in a reproducible way down to, you know, many parts, down to, you know, two to five parts per million, will really make a difference for these low-shedding cancers. So, again, our clinical studies, you know, that are underway collectively will be looking at 4,000 patients either receiving or will receive our precise MRD tests.

Speaker Change: Prescription patterns, just because of United and Paris, not covering I'm, just asking this because I'm hearing potentially maybe heading into a recessionary environment and if that is the case the patient pay my declined further.

puneet: This in my prepared comments generally when you look at your kind of underlying current period rates outside of the headwind items that we specifically called out we see a very favor.

Speaker Change: Hey, Puneet. Thank you for the question Scott If you could take the first part of that and then I think related to the providers and so forth markets can take that part sure. So the first part of the question related to coverage and I know you are asking primarily about gene side, but I think there was a little bit of the question that maybe you had a carryover around the <unk>.

A favorable rate environment, where we've been able to maintain the positive momentum that we had.

puneet: 2024, and based on a number of Rev cycle and payer market initiatives. We are optimistic that we'll be able to continue to make more progress in 2025.

Mark Friday: Mark Yes to answer the second part of the question.

Speaker Change: Environment for coverage and reimbursement for our other products I'll, maybe make a directional comment on those as well, but first of all with respect to Jim cited specifically I'll reiterate what we had said when the news around United was first unfolding, which was that we had no reason to expect that.

Speaker Change: We're not seeing any meaningful change in our providers if anything I think the market uncertainty.

Tejas Savant: And, you know, together, that's going to generate more than 30,000 time points of data. So, I hope I answered your question. Got it. You did. Thank you.

Speaker Change: Unfortunately continues to drive the need for a test like gene side, because the mental mental illness is not going away anytime soon I would say as we saw within our as we mentioned in our.

Samraat Raha: And one follow-up, actually. So at a high level, Sam, I know it's early days, but where do you see room for changes in strategy or perhaps even, you know, your sort of guidance or expectations management philosophy, you know, relative to Paul's tenure or essentially sort of like, you know, going to be more or less a similar approach? I know you laid out sort of three parts, you know, to how you're thinking about it, but any kind of like initial sort of, you know, thoughts on that would be great. And then just to clean up on Gene's side, I'm just trying to get a sense of I guess your gene site performance in the quarter came in light versus where we were, certainly, versus I think where most street models were.

Speaker Change: United's covers determination would have any impact on coverage for any other payer and what I would say is that in the months passed since then is the.

Speaker Change: Remarks, we did reduce spend in Q1.

His proven out we haven't seen any indication of a risk of coverage across the rest of the peer universe that covers.

Speaker Change: Because of the UHC decision and so that did have an impact.

Speaker Change: It will have an impact going going throughout the year, but as far as providers reacting to any payer coverage, we're not seeing that but that said we need to be really mindful that we're focusing on driving growth that is that is profitable.

Speaker Change: I mean that covers gene site and in fact more recently, we have had a couple of interesting wins in terms of incremental coverage, including one on the commercial side for Aegean say no of course it is.

Speaker Change: And not just not just driving growth that's going to continue to increase <unk>.

Speaker Change: Same magnitude as the United coverage, but its consistent with our general theme that we've been talking about since the beginning of last year, which is generally we continue to see constructive opportunities to continue to build out the coverage universe for <unk>.

Speaker Change: Okay. Thank you and then if I could just follow up.

Speaker Change: Sam.

Tejas Savant: And I'm just trying to like parse out sort of what exactly drove the weakness, because I know you had contemplated weakness in your initial guide from sort of the peer issues. But just trying to get a sense of, is it on the volume side? Was it something else? Any color would be great. Thank you.

Speaker Change: As you have been in Marion for some time now.

Speaker Change: And that general theme also of course throughout all of last year and so far. This year is also applicable to generally the rest of our product portfolio.

Speaker Change: Obviously in the head role, but can you elaborate a little bit as to how you think about this portfolio is this the right portfolio I think thats been the major question for Maryann for a very long time.

Speaker Change: Mentioned this in my prepared comments generally when you look at your kind of underlying current period rates outside of the headwind items that we specifically called out we see a very favor.

Samraat Raha: Now, I appreciate the question. Let me start with your first question here on maybe a little bit of what this next chapter of Myriad is going to look like. And then I'll, Mark, if you don't mind answering a little bit more on Gene's side, a little bit more color there. You know, listen, Tejas, what I can tell you is to get a sense of, you know, who I am and what this chapter is going to look like. I think you could look at my experiences with the last two companies I've worked at. And that includes, you know, my fundamental belief that, you know, both for the inside, first and foremost, meaning in the company, to execute with excellence, to really be able to meet our targets consistently.

Speaker Change: The tests that have been added.

Speaker Change: Have some challenges or the other.

Speaker Change: Favorable rate environment, where we've been able to maintain the positive momentum that we had.

Speaker Change: Every year, we run into them, either if it's <unk> or gene side.

Speaker Change: Can you elaborate on the portfolio and if there is room for divestiture here.

Speaker Change: 2024, and based on a number of Rev cycle and payer market initiatives, we're optimistic that we'll be able to continue to make more progress in 2025.

Speaker Change: Thank you again for the question I mean, it's similar.

Speaker Change: I think going in that direction too.

Speaker Change: I think that again, while though there'll be some time to be taken and I think it's prudent thing to do while doing it quickly to make sure. We do the thoroughness and looking at our strategy to understand and make decisions. What I can tell you again as we are absolutely resolute.

Mark: Mark Yes to answer the second part of the question.

Speaker Change: We're not seeing any meaningful change in our providers if anything I think the market uncertainty.

Samraat Raha: Simplification matters, being very clear on the critical few, what we're working on, how they all tie together, and really having that clarity, including like, you know, already on this call, you know, one of our colleagues said this is just, there's always something, there's so many different parts. So, I think we have the opportunity to get clear and crisper on what Myriad is all about, and you should expect to see that in the coming quarters and years as part of Myriad. And the other thing I would add, too, is, you know, I've just grown up with the training and the philosophy of, you know, very important part of operating business like in life is being able to do what you say you're going to do.

<unk> oncology right and there are two will provide more clarity, though we had.

Speaker Change: <unk> underperformance compared to what wed expected or wanted in unaffected hereditary cancer, we think its programmatic, it's more execution related which we're working to fix so it's just a matter of how long that takes.

Speaker Change: Remarks, we did reduce spend in Q1.

Speaker Change: Because of the UHC decision and so that did have an impact.

Speaker Change: As a reminder, hereditary cancer.

Speaker Change: <unk> unaffected is almost a $4 $5 billion market that's growing in high single digits. We are the leaders there and there is a significant opportunity that remains in its for ours to go get and it's just about execution, which we can go into more but beyond that I think it is.

Speaker Change: Not just in not just driving growth that's going to continue to increase <unk>.

Samraat Raha: So, you know, setting our expectations and being able to meet those, meeting our own timelines for our sake, for the sake of our customers, the market, and for those investors that follow us, you know, those are things that we take extremely seriously, and it's part of, you know, becoming a world-class business in this next chapter of Myriad.

Speaker Change: Yeah.

Speaker Change: Okay. Thank you and then if I could just follow up Sam.

Speaker Change: And as you have been at <unk> for some time now.

Speaker Change: We're going to go through the rigor to really look at it and say we are myriad the way we are and how we got here, but what are the pieces going forward. So that that really support our best ability to grow in a predictable profitable way compete and win in the market maybe those sound like a lot of obvious words, but behind it is.

Speaker Change: Obviously in the head draw can you elaborate a little bit.

Mark Verratti: So, Mark, could you take the Genesight question, please? Yeah, let me add a little bit of color. I think, as we've stated before, Genesight is a very market-sensitive environment, just because of the low awareness level related to pharmacogenomics. That said, because of the UHC hit to our revenues, we did have to make some difficult decisions around lowering the investment within Genesight, and unfortunately, the timing of us being able to respond to that actually did take place in the beginning of the first quarter. So, due to that lowering of investment having an impact, as well as just the disruption, that is why we had lower-than-expected volumes within the first quarter.

Speaker Change: How you think about this portfolio is this the right portfolio I think thats been the major question for Maryann for a very long time.

Speaker Change: The conviction to really be thorough and make choices to help support our go forward. So.

Speaker Change: The tests that have been added.

Speaker Change: We have some challenges or the other.

Speaker Change: Every year, we run into them either if its heritage Larry or a gene side.

Speaker Change: With each it's a little bit of I appreciate it's a little bit of time for the management team and I to work through that and we'll have some clarity for ourselves is more that we can share but by Q4.

Speaker Change: Can you elaborate on the portfolio and if there is room for divestiture here.

Speaker Change: Thank you again for the question I mean, it's similar.

Speaker Change: Okay I appreciate it thanks for covering those.

Speaker Change: <unk> is I think going in that direction too.

Speaker Change: I think that again, while though there'll be some time to be taken I think its prudent thing to do while doing it quickly to make sure we do the thoroughness and looking at our strategy.

Speaker Change: Thank you.

Speaker Change: Thank you one moment for our next question.

Mark Verratti: But there wasn't anything about the fundamental business, or as we talked about before, there isn't any change in our provider behaviors either, moving forward. But as we did call out, we want to make sure that we're very... But we do proper diligence moving forward and that we're focused on profitable growth, because as we've called out before, a gene site does have a high zero pay rate. And so we want to make sure that we're targeting our sales organizations and our marketing efforts to the right to the right providers and the right payers.

Speaker Change: Our next question comes from the line of David Westenburg from Piper Sandler.

Speaker Change: To understand and make decisions what I can tell you again as we are absolutely resolute.

Speaker Change: Hi.

Speaker Change: For for taking the questions here so.

Speaker Change: So just regarding the slower ramp on the unaffected population are unaffected testing in hereditary cancer.

Speaker Change: <unk> oncology right and there are two will provide more clarity, though we had.

Speaker Change: <unk> underperformance compared to what we'd expected or wanted in unaffected hereditary cancer, we think its programmatic, it's more execution related which we're working to fix so it's just a matter of how long that takes.

Speaker Change: <unk>.

Speaker Change: Our EMR integration sorry.

Speaker Change: I asked on the sell side, we are US investors. We really don't know then that kind of the nuts and bolts and why this would kind of take multiple quarters to kind of integrate and what this kind of disruption.

Mark Verratti: Got it. Thanks guys, appreciate it. Thank you for your questions. Thank you.

Speaker Change: As a reminder, hereditary cancer.

Speaker Change: Looks like so can you give us a flavor for.

Speaker Change: Our unaffected is almost a $4 $5 billion market that's growing in high single digits. We are the leaders there and there is a significant opportunity that remains in its for ours to go get and it's just about execution, which we can go into more but beyond that I think it is.

Speaker Change: Just a little bit more details on why you are certain this is the problem why you're certain.

Sung Jee Nam: Our next question comes from the line of Sung Jee Nam from Scotia, Hi, thanks for taking the questions. I have a question on Polaris, and it's a two-parter, so I'll just count them as two questions.

Speaker Change: It could take a couple of why it's going to take a couple more quarters to fix them.

Speaker Change: What that business can grow at again I'm looking at this uninfected population volume.

Mark Verratti: Just kind of curious, you know, what do you think are the biggest misperceptions that are out there amongst the customer base with regards to the NCCN guidelines? You know, are you having success in terms of having discussions with the customers and kind of clarifying kind of what you believe are the misperceptions? And then just curious, you know, obviously, you're very excited about the PISTOMIC partnership, but how is that resonating, you know, with the customer base currently? I don't know if there are any early discussions underway. Thank you. Yeah, I appreciate the questions.

Speaker Change: Revenue is down.

Speaker Change: 4% volumes were flat so I just want to make sure that that's just mix and not kind of lower payments are a lot more non no coverage there.

Speaker Change: One short follow up.

Yeah.

Thank you for the question I'm glad you asked that allows us to actually provide some detail, which I think will be helpful. So many others on the call by the way to the two drivers and then I'll hand, it over to Mark to really kind of go into a little more detail here.

Speaker Change: The conviction to really be thorough and make choices to help support our go forward. So with each it's a little bit of I. Appreciate it's a little bit of time for the management team and I to work through that and we'll have some clarity for ourselves is more that we can share by Q4.

Mark Friday: Along with the EMR. It's also just the time to the traction from our breast cancer risk assessment program, we've seen some early.

Mark Verratti: Mark, why don't you go ahead and start and I can compliment as needed. Yeah, why don't I take the first part and maybe I'll pass it back to Sam in a second. But related to the first part, yes, when we've met with our top providers over the quarter, there was a lot of confusion around the NCCN guidelines, because I think, as we've called out before, of the 67 different cancer guidelines that NCCN puts out, Prostate is the only one that has the mention of this assignment level one evidence. And although it does have its merits, it is relatively new.

Speaker Change: Good good.

Mark Friday: Good results its ability to scale that too.

Speaker Change: Okay I appreciate it thanks for covering those.

Mark Friday: Please provides martin yeah sure David let me provide a little bit of clarity and try to give you. An example related to EMR and first I want to thank our EMR teams, which has been a very.

Speaker Change: Thank you.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Our next question comes from the line of David Westenburg from Piper Sandler.

Mark Friday: Cross functional group of folks within the area that have been actively working on this over the last 18 months and I would say there are some some positive. So when you think about our prenatal business or do you think about the hereditary cancer business.

Speaker Change: Alright.

Speaker Change: For for taking the questions here so.

Speaker Change: So just regarding the slower ramp on the unaffected population are unaffected testing in hereditary cancer.

Mark Friday: On the Opex side of the equation a lot of EMR integrations, just has to do with the ability to order a myriad of tasks right just simply go into epic and press the button and to be able to order. The test what we see across all of our accounts, though is from a workflow perspective on the unaffected side, so patients who do not have cash.

Speaker Change: Eri.

Speaker Change: Our EMR integration sorry.

Mark Verratti: Again, it is only one of 67 guidelines that actually has it included. So there was a lot of confusion around the wording. And so we did have to spend time during the first quarter correcting any confusion that any providers had. I think the good news is, for the most part, we have that behind us. The providers do understand what the guidelines say. They're also advocating to work with the NCCN writers to see if they can get that language clarified. We don't expect that clarity to happen in 2025, but we hope that the recommendations will take place going into 2026.

Speaker Change: I was on the sales side, we are as investors, we really don't know.

Speaker Change: That's been bolt and why this would kind of take multiple quarters to kind of integrate and what this kind of disruption.

Speaker Change: It looks like so can you give us a flavor for.

Or it really starts with an ability to do a family history, which is a series of asking a lot of different questions around relative as Im sure you fill those out in the past.

Speaker Change: Just a little bit more details on why you are certain this is the problem why you're certain.

Speaker Change: Take a couple of why it's going to take a couple more quarters to fix.

Ideally that is a that is a feature that needs to be added into the EMR work streams. So that that process is not manual also in many cases and when you think about an uninfected population.

Speaker Change: And what that business can grow at again I'm looking at this uninfected population volume.

Speaker Change: Revenue is down 4% volumes were flat. So I just want to make sure that that's just mix and not kind of lower payments are a lot more non no coverage there.

Samraat Raha: So with that confusion behind us, we're able to focus on the merits of our test. And we do have the highest clinical utility evidence at time of biopsy. And then as Sam mentioned, there is a lot of excitement even now as we start talking about combining Prolaris with Pathomics AI technology.

Mark Friday: Many cases those appointments are being done virtually so the idea that also a feature built within the anr.

Mark Friday: Would require pushing a button and having a kit shipped virtually secondarily many of those patients require patient education, because once they get the results, it's not as clear again within the prenatal world or within the affected side. It is a very clear answer on the unaffected side, what do they do now that they see a number that says that they have a higher risk.

Speaker Change: One short follow up.

Speaker Change: Hey, David Thank you for the question I'm glad you asked it allows us to actually provide some detail, which I think will be helpful. So many others on the call by the way to the two drivers and then I'll hand, it over to Mark to really kind of go into a little more detail here.

Samraat Raha: So on that, I'll turn it back over to Sam. Yeah, just to add a little bit to answering the second question that you had. We're finding, you know, a real good level of interest and anticipation for our combined test. You know, part of it, I think, quite frankly, is there was some concern of our level of commitment to prostate cancer. And, you know, the partnership has, you know, helped reaffirm our commitment long-term to prostate cancer and a pipeline. Now, you know, both that that's going to be there starting with, you know, a time of biopsy, then post-RP.

Speaker Change: Along with EMR. It's also just.

Speaker Change: The time to the traction from our breast cancer risk assessment program, we've seen some early.

Mark Friday: What are their options, where does that report telling them and so in many cases, we need to make sure that it's either plugged into the myriad genetic counselors or it's plugged into the account patient education materials and so those workflows, what we've seen in working with our accounts our challenge points and so we've systematically identified that.

Speaker Change: Good good.

Speaker Change: A good result, with the ability to scale that Tuesday. Please provides martin yeah sure David Let me provide a little bit of clarity and try to give you. An example related TMR and first I want to thank our EMR teams, which has been a very.

Speaker Change: Our cross functional group of folks within the area that have been actively working on this over the last 18 months and I would say there are some some positive. So when you think about our prenatal business or do you think about the hereditary cancer business on the Opex side of the equation a lot of EMR integrations, just has to do with the ability to order a myriad of tasks right.

Mark Friday: Accounts, we're going back we're making sure that we're building on those features. The example that I called out in the prepared remarks is actually working with Opex to build a digital cancer risk assessment, so that would be built into the epic platform, which would not only help the accounts that we've already enrolled but would also be a feature that we could utilize moving.

Samraat Raha: So the other thing, you know, our Pathomic colleagues have a great network. This is part of why we did our diligence, and we chose them in prostate cancer. A significant number of thought leaders from the space that are, you know, leaders in key academic medical centers related to prostate cancer. We actually get, you know, the combined benefit of what both Myriad brings and Pathomic brings to, you know, start building a new narrative of what our combined test is going to be able to do to really serve patients. Thank you.

Speaker Change: Just simply go into <unk> and <unk>.

Mark Friday: Forward as well with new accounts that we onboard.

Speaker Change: Press, the button and to be able to order the test what we see across all of our accounts, though is from a workflow perspective on the unaffected side. So patients who did not have cancer. It really starts with an ability to do a family history, which is a series of asking a lot of different questions around relative as Im sure you fill those out in the past.

Mark Friday: But again that is going to take us some time because.

Once we build those solutions, we now need to sort of get back in the queue with all those accounts. So that those tech teams can also enable them on their side. So hope that provided a lot better clarity yet.

Mark Friday: Okay.

Speaker Change: And ideally that is a that is a feature that needs to be added into the EMR work streams. So that that process is not manual also in many cases, when you think about an uninfected population.

Mark Friday: I think there was one other part of your question which was around.

Operator: Thank you all.

Operator: One moment for our next question.

Mark Friday: The fact that volumes were largely flat, but revenue was down somewhat and I'll just say that there has been no deterioration in terms of the underlying rate environment.

Andrew Cooper: Our next question comes from the line of Andrew Cooper from Raymond James. Hey, everybody. Thanks for the time a lot already asked. So maybe I'll just try one more time on the gene site piece. It sounds like the impact the actual change here isn't anything with United as much as it is your sort of reprioritization of some of the Salesforce. So is that correct? And then can you just frame for us the actual kind of dollars and cents impact of that 35 million guidance reduction coming from that? And then I'll have a follow up from Yeah, and I appreciate the question.

Speaker Change: Many cases those appointments are being done virtually so the idea that also a feature built within the anr.

Mark Friday: In terms of coverage or no payer reimbursement cycle for that category of testing overall, we continue to see encouraging developments on positive momentum.

Speaker Change: Would require pushing a button, having a kit shipped virtually secondarily many of those patients require patient education, because once they get the results. It is not as clear again within the prenatal world or within the affected side. It is a very clear answer on the unaffected side, what do they do now that they see a number that says that they have a higher risk.

Mark Friday: There is some amount of adverse mix just in terms of the payer mix and theres always going to be some ebb and flow to that and then in the prior year period, you had some amount of favorability from the change of estimates did not favorably impact this year, but there is always going to be some amount of movement from that type of thing and not a reflection on the health of the.

Speaker Change: <unk> right what are their options, where does that report telling them and so in many cases, we need to make sure that it's either plugged into the myriad genetic counselors or it's plugged into the account patient education materials and so those workflows, what we've seen in working with our accounts are a challenge points and so we've systematically identified.

Scott Leffler: Scott, do you do you want to take the question? Yeah, so with respect to the first part, I think you're thinking about it the right way. So there's two elements to the gene site narrative right now. There's the the the kind of headline ASP impact of the change in United's policy, which landed, it was an impact of $10 million for the quarter and that's in line with what we had anticipated and what has been incorporated into our previous guidance. What is different in terms of the gene, our view on gene site right now is the reduced volume expectation.

Mark Friday: Underlying rate environment.

Mark Friday: Gotcha.

Mark Friday: You very much and just.

Mark Friday: Is that a shorter follow up and get you guys did give me a lot of time here.

Speaker Change: And just in terms of Polaris down, 2% run rate, where you at prior to the <unk> guidelines.

Speaker Change: Those accounts, we're going back we're making sure that we're building on those features. The example that I called out in the prepared remarks is actually working with Opex to build a digital cancer risk assessment, so that would be dealt into the epic platform, which would not only help the accounts that we've already enrolled but would also be a feature that we could utilize moving.

Speaker Change: And what's your best assessment of what the market growth would look like we're just trying to im just trying to get a sense of.

Speaker Change: Comparability with the down being 2% being business as usual and then market growth rate. So when you stabilize that what that might look like essentially what I'm trying to get at thank you very much for all the details.

Scott Leffler: And that is a significant part of the $35 million reduction in our 2025 revenue guide. You know, we're not going to break out the individual components, but generally what I'll tell you is that gene site volume view, the evolving gene site volume view and the performance, the slower ramp in terms of our effective hereditary cancer testing volume are the two major contributors to that $35 million deferment to our revenue guide. Okay, helpful.

Speaker Change: Forward as well with new accounts that we onboard so but again that is going to take us some time because.

Speaker Change: Yes, Youre welcome Dave maybe I'll start there.

Speaker Change: Once we build those solutions, we now need to sort of get back into queue with all of those accounts. So that those tech teams can also enable them on on their side. So hope that provided a lot better clarity yet.

Speaker Change: <unk>.

Speaker Change: We have been in a very competitive situation as you know with decipher embarrass site.

Speaker Change: And.

Speaker Change: It's relatively stable so that's our perspective on how this year, how we expect it to be but when we through the actions. We are taking by the way, we're not standing still and just waiting for the partnership with <unk> with Potomac to develop our first AI enabled tests, which will definitely put us in a better place along the along the way we are.

Speaker Change: Okay.

Speaker Change: I think there was one other part of your question which was around.

Samraat Raha: Um, and then maybe just on a positive note, you know, first gene launch, you put a pretty firm date on here by July, I think you said so. Maybe Sam, for you, you know, you talked about the kind of credibility on launch timelines and making sure you're on track. What have you learned thus far? And kind of, how do we think about this first gene launch and what it might inform about how you approach launches, you know, still to come, as we move through the next few years?

Speaker Change: The fact that volumes were largely flat, but revenue was down somewhat and I'll just say that there has been no deterioration in terms of the underlying rate environment.

Speaker Change: Also.

Speaker Change: Recoveries are no payer reimbursement cycle for that category of testing overall, we continue to see encouraging developments on positive momentum.

Now, making advances on getting signed on level one evidence in place.

Speaker Change: Work now with the filmmaker accelerates that by a year to year and a half.

Speaker Change: There is some amount of adverse mix just in terms of the payer mix and theres always going to be some ebb and flow to that and then in the prior year period, you had some amount of favorability from the change of estimate did not favorably impact this year, but there is always going to be some amount of movement from that type of thing and is not a reflection on the health.

Speaker Change: In terms of the commercial teams we've added folks we've actually prioritize clarified the message we're starting to see traction there and before maybe I'll hand, it over to Mark I think that that market, we see as a low double digit growth market at.

Samraat Raha: Yeah, that's a great question. And I think it ties to, you know, in my framework, the pillar on on execution, or moving towards execution excellence. I think Myriad has long been continues to be a company of great science, and great intentions, and great colleagues, but really focusing on, you know, getting in a in a very deliberate way better on product development, all the way from planning a product, defining it, development, developing it and bringing it to market. You know, to mature that in a way that, you know, a number of other companies have, and including where I've clearly been, and a number of my colleagues around the table have been, that that's the opportunity, that's one of the big opportunities for us to get better.

Speaker Change: At least and Thats the opportunity to resume and get back to <unk>.

Speaker Change: So the underlying rate environment.

Speaker Change: Competing and winning that share and actually part of the filmic partnership allows us to bring a product to market and posts RFP, where we don't even participate today, it's a complete blue ocean because our Polaris solution today is.

Speaker Change: Gotcha. Thank you very much and just I'll just ask my shorter follow up then.

Speaker Change: Give me a lot of time here.

Speaker Change: And just in terms of Polaris down 2%.

Speaker Change: Right, where you at prior to the Mtc and guidelines.

Speaker Change: For the majority.

Speaker Change: It's four time of biopsy, but they settle out their marketing.

Speaker Change: And what's your best assessment of what the market growth would look like we're just trying to im just trying to get a sense of.

Speaker Change: I just kind of got Bill Im not sure. There is there is much to add there unless unless that didn't answer the question. So let me just ask.

Speaker Change: Comparability with the down being 2% being business as usual and then market growth rate. So say when you stabilize that what that might look like and so essentially what I'm trying to get at thank you very much for all the details.

Speaker Change: Okay.

Speaker Change: I think Dave may be offline, okay, alright. Thank you. Thank you.

Speaker Change: Thank you.

Speaker Change: One moment for our next question.

Samraat Raha: And I think it will drive more efficiency, it'll it'll drive on the inside. And most importantly, it will now enable us to predictably bring products to market on the time first gene, you know, this is, you know, it's been delayed, as you all, as you know, it'll be the beginning. And, you know, it's going to be a little bit of an iterative process. But there are, you know, specific things in a programmatic in a educational way, and bringing in also colleagues who have done this, and who understand how to guide an organization is part of the deliberate way we're going to, you know, get a lot better in a hurry on our timeline.

Mac Sykes: Our next question comes from the line of Mac Sykes from Goldman Sachs.

Dave: Yes, Youre welcome Dave maybe I'll start there.

Speaker Change: No.

Speaker Change: We have been in a very competitive situation as you know with with decipher embarrass site and.

Speaker Change: Hey, guys. Thanks for taking the question you will on for Matt Here, just wanted to dig a little more into the cost savings side of the guide I know you mentioned it would be on discretionary spending rather than the pipeline or commercial organization for <unk>.

Speaker Change: Any more detail you can provide on whats being cut there would be super helpful.

Speaker Change: For the partnership with <unk> to develop our first AI enabled tests, which will definitely put us in a better place along the along the way we're also.

Speaker Change: Let me start thank you for the question I'll hand to Scott.

Scott Leffler: Yes. It is true right there some big levers that we're that we've already started to take including incredibly careful any additions of head count really holding steady on that being very deliberate.

Speaker Change: Now, making advances on getting signed on level one.

Speaker Change: Evidenced in place the work now with the filmmaker accelerates that by a year to year and a half.

Operator: Great. I'll stop there.

Speaker Change: Of course on the traditional things on.

Speaker Change: Any travel entertainment all of those categories and then there is other spend related to <unk>.

Tycho Peterson: Our next question comes from the line of Tycho Peterson from Jeffrey. Hey, Scott, um, one for you just on on kind of liquidity, you mentioned it's going to be sufficient to meet operating requirements to the end of the year. Can you where do you stand relative to the fixed charge ratio requirement under the ABL and how much cash you need to run the business day to day? So we are still above the fixed charge coverage ratio in terms of the ABL covenant requirements. And then, you know, in terms of day to day, one of the advantages of the international restructuring that we did last year is we significantly streamlined the working capital requirements of the business.

Speaker Change: Programmatic things be it research studies or excuse me when we're actually doing market studies and other things that we may be using consultants for to really be deliberate and focused it elsewhere for growth, but Scott please kind of take it from there.

Speaker Change: Lease and Thats, the opportunity to resume and get back to that.

Speaker Change: Competing and winning that share and actually part of the filmic partnership allows us to bring a product to market and post ERP, where we don't even participate today, it's a complete blue ocean because our Polaris solution today is.

Speaker Change: I'll just remind you that on the last call. We also talked about a re prioritization of spend because even our initial or previous guidance for opex was at a level that was kind of below the historical level of Opex investment and what we're really believes to be able to communicate on the lot.

Speaker Change: The majority are it's four time of biopsy, but I said a lot there mark.

Speaker Change: I just kind of got Bill Im not sure there is much to add there unless unless that didn't answer the question. So let me just ask.

Speaker Change: Earnings call was the fact that we were able to re prioritize spend in order to continue to invest in the more strategic parts of the business, which includes things like the EMR integrations that we have ongoing which includes the product development efforts that we continue to prioritize along with incremental investments in the commercial organization and we continue to be comfortable that we.

Speaker Change: Okay.

Scott Leffler: And so I would say, you know, I don't think we're going to commit to a number that we need to run the business, but it's very modest relative to historical requirements. And I'll just emphasize what I said in the prepared comments, which is that we have sufficient liquidity to meet our projected needs for 2025.

Speaker Change: I think Dave may be offline, okay, alright. Thank you. Thank you.

Speaker Change: Thank you one moment for our next question.

Mac Sykes: Our next question comes from the line of Mac Sykes from Goldman Sachs.

Speaker Change: We can fund those strategic investments.

Mac Sykes: Hey, guys. Thanks for taking the question you will on for Matt Here, just wanted to dig a little more into the cost savings side of the guide I know you mentioned it would be on discretionary spending rather than the pipeline or commercial organization, but any more detail you can provide on whats being cut there would be super helpful.

Speaker Change: By being more efficient in other parts of the Opex structure infrastructure in the way that families describe.

Scott Leffler: Okay, and then follow up is just on guidance, two things. One, you know, are you assuming, assuming kind of further pricing pressure? You know, try anything kind of tied to prior, you know, catch up payments that you've flagged this quarter? And then, are you saying anything about the LRP? I mean, it wasn't that long ago at JPMorgan, you did kind of lay out double digit revenue growth, 70% margins, what are you kind of thinking about the LRP at this Maybe Scott, you start with the first one and I can talk about the LRP after that.

Speaker Change: That's helpful and then and then as a follow up.

On the RCM initiatives you guys are early to optimizing those processes.

Speaker Change: And you've talked about the underlying rate environment being relatively stable today, but.

Scott: Let me start thank you for the question I'll hand to Scott.

Speaker Change: But how much benefit is left for future improvement in RCM and what are you guys doing to unlock those opportunities.

Scott: Yes, it's true that there are some big levers that we're that we've already started to take including incredibly careful any additions of head count really holding steady on that being very deliberate of course on the traditional things on.

Speaker Change: Yes, Great question, Scott I know Theres more room, and we're very actively working on that in a programmatic approach. So maybe you can provide some more so so as a reminder, last year, we talked about this throughout the year, we had come into 2024 with no pay rate that was around 46% and we finished 2024 with no pay rate there was around.

Scott Leffler: Yeah, and I think there may have been some confusion over some of the drivers of ASP, but you know, overall, that we're not anticipating any, we're not experiencing, nor are we anticipating any kind of incremental headwind in our rate environment, again, the underlying rates remain healthy. The year-over-year headwind that we have, first of all, related to Genesite United, which was obviously known, and then also in Q1 of last year, we had some favorability, some out-of-period favorability that did not repeat in Q1 of this year, and so it created a year-over-year headwind, but it wasn't representative of any negative development this year, so we continue to be optimistic about the rate environment, and that's reflected in our full-year guide.

Scott: Any travel entertainment all of those categories and then there is other spend related to <unk>.

Scott: Programmatic things be it research studies or excuse me when they are actually doing market studies and other things that we may be using consultants for to really be deliberate and focused it elsewhere for growth, but Scott please kind of take it from there.

Speaker Change: <unk>.

Speaker Change: 34% for 43% and so that incremental improvement throughout 2024 really had a significant impact on our overall ASP environment coming into 2025, but really when you take a step back the amount of no pay that is just the sheer volume of no pay that remains for us to go after is tremendous.

Scott: I'll just remind you that on the last call. We also talked about a re prioritization of spend because even our initial or previous guidance for opex was at a level that it was kind of below the historical level of Opex investment and what we're really believes to be able to communicate on the line.

Speaker Change: And so we continue to see.

Speaker Change: Very sizeable opportunity there and we do continue to make investments in our Rev cycle and payer markets organization in order to tap into more of that opportunity overtime, including within 2020 calendar year 2025.

Samraat Raha: Yeah, quickly on the LRP, you know, though, we're going to get more clear and do the work during our strategy refresh, as I've already alluded to before, you know, based on our performance and our guidance that we just spoke about, you know, the attractive markets, again, that we're participating in, you know, our capabilities, our access into those markets, and the new products, which we've talked a little bit about that, that we know are coming, the timing of those, you know, over a multi three year plus period, you know, at this point, we feel confident in high single digit to low double digit, but we'll refine that more or get clearer on that as we go through our strategy refresh work over the next few months.

Scott: After earnings call is the fact that we were able to re prioritize spend in order to continue to invest in the more strategic parts of the business, which includes things like the EMR integrations that we have ongoing which includes the product development efforts that we continue to prioritize along with incremental investments in the commercial organization and we continue to be comfortable that.

Speaker Change: Thanks, guys I appreciate the color.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Our next question comes from the line of Tejas Savant from Morgan Stanley.

Scott: We can fund the strategic investments by being more efficient in other parts of the opex structure infrastructure in a way that San Francisco labor.

Tejas Savant: Hey, guys good evening and thanks for the time here.

Tejas Savant: So maybe I'll start with one on the margin side of things.

Scott: That's helpful and then and then as a follow up on.

Tejas Savant: Following the data you showed at ACR in Reno.

Scott: On the RCM initiatives you guys are early to optimizing those processes.

What should we expect that <unk>. This year and are you still on track to submit two multi extra coverage and Brett.

Scott: You've talked about the underlying rate environment being relatively stable today, but.

Scott Leffler: Thank you.

Lu Li: One moment for next question. Our next question comes from the line of Lu Li from UBS. Great, thank you for taking my question. Just very quick on the hereditary cancers. So appreciate that you're giving out lots of example in terms of like how the EMR integration. I wonder how many accounts are already being converted or meaning like adding the feature. The reason I'm asking is just like, how do you actually track like the timeline of the RAM? Is there any risk that it can get like push out like any longer? What are the risks to the guidance?

Tejas Savant: Your end and then last bit of that question.

Scott: But how much benefit is left for future improvement in RCM and what are you guys doing to unlock those opportunities.

Tejas Savant: ACR, increasing point of focus has been higher sensitivity. So I'm just curious as to your thoughts on what is that threshold for landmark sensitivity that's needed for physicians to be comfortable in terms of using <unk> to either escalator or deescalate treatment.

Speaker Change: Yes, Great question, Scott I know Theres more room, and we're very actively working on that in a programmatic approach. So maybe you can provide some more.

Speaker Change: Minder last year, we talked about this throughout the year, we had come into 2024 with no pay rate that was around 46% and we finished 2024 with no pay rate there was around.

Tejas Savant: Thank you for the question Tejas.

Speaker Change: Things you had in there so let me let me start let me try.

Speaker Change: 44% or 43% and so that incremental improvement throughout 2024 really had a significant impact on our overall ASP environment coming into 2025, but really when you take a step back.

Tejas Savant: To answer that so yes, we are.

Speaker Change: Pleased by the.

Speaker Change: The study that we'll share the information that's shared by our collaborator MD Anderson Cancer Center and this was about for those that might not be as familiar about clear cell renal cell carcinoma, and really showing that our ultra sensitive.

Samraat Raha: Thank you. Yeah, no, I appreciate the question. You know, at a high level before maybe Mark, I hand it to you. You know, we, as you know, we serve 1000s of healthcare providers and customers. And a subset of those are for unaffected hereditary cancer. And that's where, you know, Mark is providing the guidance, or excuse me, the detail about the, you know, the workflow related matters that we're working through. But, you know, we've contemplated a lot of that foot and take within within our guidance. So I'll just say that at a high level. But, Mark, I don't know what other color you know that.

Speaker Change: No just the sheer volume of no pay that remains for us to go after is tremendous and so we continue to see a very sizable opportunity there and we do continue to make investments in our Rev cycle and payer markets organization in order to tap into more of that opportunity over time, including with its audience.

Speaker Change: <unk> found that patients who tested negative three months after radiation avoided progression to more aggressive therapy for nearly 2.5 years longer than on average than patients who test deposit. The key is that we were able to help.

Speaker Change: Calendar year 2025.

Speaker Change: Detect and determine in a clinical set of samples.

Speaker Change: Thanks, guys I appreciate the color.

Speaker Change: Clearly something that otherwise wouldn't be detected by traditional imaging and that's that's very meaningful one of the first real clinical.

Speaker Change: Thank you one moment for our next question.

Jay Zavon: Our next question comes from the line of Jay just Zavon from Morgan Stanley.

Mark Verratti: Yeah, I'm not sure I can give any more color because Sam just mentioned, there's literally 1000s of providers. And as we stated, in Q4 last year alone, we integrated over 4500 accounts. So I guess what I would say is that the EMR integrations account by account level, it is a it is material to our overall unaffected hereditary cancer growth. So and we are going account by account, I would say that some of the workflow challenges that I called out, we can address this year, specifically in Q2, Q3. So we will be implementing some different workflow solutions that will definitely have a positive impact.

Speaker Change: Examples of the power of our performance.

Jay Zavon: Hey, guys good evening and thanks for the time here.

Speaker Change: Now in terms of I think you also asked about <unk>. We're excited at ask overall to have multiple seven submissions were accepted related to.

Jay Zavon: So maybe I'll start with one on the <unk> side of things.

Jay Zavon: Following the data you guys showed at ACR in renal.

Jay Zavon: What should we expect that <unk>. This year and are you still on track to submit two multi extra coverage and breadth by year end and then last bit of that question.

Speaker Change: Myriad oncology products, including MRV products, there will be a <unk>.

Speaker Change: Sodium presentation, thereby collaborator.

Doctor Hashimoto: Doctor Hashimoto from NCC, Japan, he'll be talking about pan cancer molecular Mardi.

Jay Zavon: ACR, increasing point of focus has been higher sensitivity. So I'm just curious as to your thoughts on what is that threshold for landmark sensitivity that's needed for physicians to be comfortable in terms of using Mardi do either escalator de escalate treatment.

Doctor Hashimoto: D assessment, using our assay for personalized DNA panel and it's going to actually again illustrate in a more broad set of cancers.

Mark Verratti: That said, across all of our account bases, it is going to be an ongoing effort. But we are expecting to see positive momentum coming from those EMR efforts, as well as, as Sam mentioned, the hereditary breast cancer risk assessment programs that we've also had some positive results in Q1 as well.

The benefit of our ultra sensitive assay in real life samples. If you will to answer your question on.

Jay Zavon: Thank you for the question, Yes, there was a number of things you had in there. So let me let me start let me try.

Doctor Hashimoto: I think.

Doctor Hashimoto: Maybe it's about sensitivity or what will really be important for clinicians that are choosing to use this product again, just as a refresh.

To answer that so yes, we are.

Samraat Raha: Hey, just one thing to add, this is an illustration of, you know, our intention to be even more, you know, deliberate in our prioritization. You know, whereas, and it is important to continue integrating, you know, these customers, these providers onto their chosen EMRs. We are very explicitly now, we've had a number of working sessions to say, how do we solve for first and foremost, for the, you know, the most important high volume customers for those workflow challenges that Mark alluded to. So that's a priority. And, you know, we will continue to add more EMR integrations, but even more so focused on ensuring that we provide customers what they need to be able to really, you know, order more tests, have a seamless experience and therefore help us increase our volume.

Speaker Change: Pleased by the.

Doctor Hashimoto: For us and a point of differentiation and what's important is to focus in on cancers that are low shedding, meaning they have very low parts.

Doctor Hashimoto: In the blood.

Doctor Hashimoto: Actual tumor DNA.

Doctor Hashimoto: That can be detected just by nature of those cancers and again for us that's breast ovarian renal prostate.

Doctor Hashimoto: And a number of other cancers and what we found from working with clinicians and.

Speaker Change: Detect and determine in a clinical set of samples.

Doctor Hashimoto: More than 15 different mrna studies that are underway in all the dialogue that we've had that being able to detect consistently in a reproducible way down too many parts down to 2% to five parts per million.

Speaker Change: Clearly something that otherwise wouldn't be detected by traditional imaging and that's that's very meaningful one of the first real clinical.

Speaker Change: Examples of the power of our performance.

Operator: Ghani, thank you. Thank you. One moment for our next question.

Really make a difference for these low shedding cancer, so again, our clinical studies.

Speaker Change: Now in terms of I think you also asked about <unk>. We're excited at <unk> overall to have multiple seven submissions were accepted related to.

Operator: Our next question comes in the line of Subhu Nambi from Guggenheim Security.

Doctor Hashimoto: That are underway collectively will be looking at 4000 patients either receiving or we will receive our precise now Marty testing together, that's going to generate more than 30000 time points of data so I.

Rikki Levitas: Hi, this is Rikki Levitas on for Subhu at Guggenheim. Thanks for taking our questions. We have a couple on women's health. So first, it looks like women's health ASPs were up around 10% year over year in the quarter. How much of that was from NIPT and how much of it was from carrier screening? And then on carrier screening, at a conference in March, you said you were seeing some progress with commercial payers that were starting to move towards covering expanded carrier screening. Could you elaborate on that progress and how much ASP lift you think that you could see from this reimbursement ahead of ACOG guidelines inclusion?

Speaker Change: Myriad oncology products, including <unk> products, there will be a <unk>.

Speaker Change: Odeon presentation, thereby collaborator.

Doctor Hashimoto: I hope I hope I answered your questions.

Speaker Change: Dr. <unk> Hashimoto from NCC, Japan, he'll be talking about pan cancer molecular MLD.

Speaker Change: Got it thank.

Doctor Hashimoto: Thank you and one one follow up actually.

Speaker Change: <unk> assessment, using our assay for personal ICT DNA panel and it is going to actually again illustrate in a more broad set of cancers.

Speaker Change: At a high level, Tim I know, it's early days, but where do you see room for changes in strategy or perhaps even.

Speaker Change: Your guidance or expectations management philosophy relative to both Daniel R. R.

Speaker Change: The benefit of all.

Speaker Change: Essentially sort of like.

Speaker Change: Our ultra sensitive assay in real life samples if you will to answer your question on <unk>.

Going to be more or less a similar approach I know you laid out sort of three parts.

Scott Leffler: And then I.

Speaker Change: How youre thinking about it but any any kind of like initial sort of.

Scott Leffler: Appreciate the question, Scott. Yeah, so so yes, the overall organic underlying rate environment is very favorable for the prenatal side of the business. It's coming from both of the subcategories of testing that you were referencing. We also have some favorable mix that's impacting the ASP environment. We're not I don't think going to break down the individual contributions of each product. But just to say that we have positive momentum across the portfolio. And that's consistent with what we saw throughout 2024 as well. I think in terms of the incremental tailwinds that we've got, so yes, we had mentioned that we were seeing some incremental coverage winds in advance of any kind of guideline change.

Speaker Change: I think.

Speaker Change: Maybe it's about sensitivity or what will really be important for clinicians that are choosing to use this product again, just as a refresh.

Thoughts on that would be great and then just a clean up on gene side I'm, just trying to get a sense of.

Speaker Change: I guess the.

Speaker Change: For us and a point of differentiation and what's important is to focus in on cancers that are low shedding, meaning they have very low parts.

Speaker Change: <unk> performance in the quarter came in light versus where we were certainly versus I think where most street models were and I'm just trying to parse out sort of what exactly drove the weakness because I know you had contemplated weakness in your initial guide from from.

Speaker Change: In the blood.

Speaker Change: Actual tumor Cte DNA.

Speaker Change: That can be detected just by nature of those cancers and again for us that's breast ovarian renal prostate.

Speaker Change: Peer issues, but.

Speaker Change: Just trying to get a sense of is it on the volume side was it something else any color would be great. Thank you.

Speaker Change: And a number of other cancers and what we found from working with clinicians and the more than 15 different mrna studies that are underway in all the dialogue that we've had that being able to detect consistently in a reproducible way down to <unk>.

Mark Friday: No I appreciate the question, let me start with your first question here on maybe a little bit of what this next chapter of myriad is going to look like and then Mark if you don't mind answering a little bit more on gene side, a little bit more color there.

Scott Leffler: And we expect to continue to see more of that. But I don't think we're ready to quantify that yet. Understood. I'm not quantifying it yet.

Speaker Change: Listen Tejas, what I can tell you is to get a sense of who I am and what this chapter is going to look like I think you could look at my experience is that the last two companies I've worked at and that includes my fundamental belief that both for the inside first and foremost meeting in the company to execute with excellence.

Speaker Change: Many parts down to 2% to five parts per million.

Speaker Change: Really make a difference for these low shedding cancer, so again, our clinical studies.

Scott Leffler: But then just one follow up then on the guidelines inclusion. Do you have any updated expectations with respect to ACOG guidelines inclusion for expanded carrier screening? And if you're expecting that this year still? You know, we, we continue to track and anticipate and be fully prepared for for that inclusion. But unfortunately, we don't I don't think we have any specific intel that isn't already out there. So we, we are ready and prepared. There'll be a good guy when it happens. Thank Thank you.

Speaker Change: That are underway collectively will be looking at 4000 patients either receiving or we will receive our precise mrna test in it together thats going to generate more than 30000 time points of data. So.

Mark Friday: <unk> to really be able to meet our targets consistently.

Mark Friday: Simplification matters being very clear on the critical few were working on how they all tie together and really having that clarity, including like already on this call.

Speaker Change: Hope I hope I answered your questions.

Speaker Change: Got it.

Speaker Change: Thank you and one one follow up actually.

Speaker Change: At a high level, Tim I know, it's early days, but where do you see room for changes in strategy or perhaps even.

Speaker Change: One of our colleagues. This is just there's always something there is so many different parts. So I think we have the opportunity to get clearer and crisper on what <unk> is all about and you should expect to see that in the coming quarters and years as part of Marriott and the other thing I would add to us.

Speaker Change: Your sort of guidance or expectations management philosophy relative to both Danny are essentially sort of like.

Matthew Scalo: At this time, I would now like to turn the conference back over to Matt Scalo for closing remarks. Okay, thanks, Gigi. And this concludes our earnings call. A replay will be available via webcast on our website for one week. Thank you again for joining us this afternoon. We'll talk to you soon. This concludes today's conference call. Thank you for participating.

Speaker Change: Going to be more or less a similar approach I know you laid out sort of the three parts to how youre thinking about it but any any any initial sort of.

Mark Friday: <unk> grown up with the.

Speaker Change: Training and the philosophy of.

Speaker Change: And that would be great and then just to clean up on gene side I'm, just trying to get a sense of.

Speaker Change: We very important part of operating business and life is being able to do what you say you're going to do so setting our expectations in being able to meet those are meeting our own timelines for our for our state for the sake of our customers the market and for those investors that follow us.

Speaker Change: <unk>.

Speaker Change: I guess.

Speaker Change: Your gene type performance in the quarter came in.

Operator: You may now disconnect.

Speaker Change: <unk> versus where we were certainly versus I think where most street models, where and I am just trying to like parse out sort of what exactly drove the weakness because I know you had contemplated weakness in your initial guide from from sort of the payer issues, but.

Speaker Change: These are things that we take extremely seriously and as part of becoming a world class business in this next chapter.

Speaker Change: So mark could you take the genes that question. Please yes, let me add a little bit of color I think as we've stated before gene side is a very.

Speaker Change: Just trying to get a sense of is it on the volume side was it something else any color would be great. Thank you.

Speaker Change: No I appreciate the question, let me start with your first question here on maybe a little bit of what this next chapter of myriad is going to look like and then Mark if you don't mind answering a little bit more on gene side, a little bit more color there.

Speaker Change: Market sensitive environment, just because of the low awareness level related pharmacogenomics that said because of the UHC hit so our revenues we did have to make some difficult decisions around lowering the investment within gene site and unfortunately, the timing of us being able to respond to that actually did take place in the beginning of <unk>.

Speaker Change: Listen Tejas, what I can tell you is to get a sense of who I am and what this chapter is going to look like I think you can look at my experience is that the last two companies I've worked at and that includes <unk>.

First quarter, so due to that lowering of investment having an impact as well as just the disruption that is why we had lower than expected volumes within the within the first quarter, but there wasn't anything about the fundamental business, whereas we talked about before there isn't any change in our in our provider behaviors either moving forward, but as we did call out we want to make sure that we're <unk>.

Fundamental belief that.

Speaker Change: For the inside first and foremost meeting in the company to execute with excellence to really be able to meet our targets consistently.

Speaker Change: Simplification matters being very clear on the critical few were working on how they all tie together and really having that clarity, including like already on this call.

Speaker Change: Hum.

Speaker Change: Yeah.

Speaker Change: So we do proper diligence moving forward and that we're focused on profitable growth.

Speaker Change: Because as we've called out before gene site does have a high zero pay rate and so we want to make sure that we're targeting our sales organizations at our marketing efforts to the right to the right providers and the rate payers.

Speaker Change: One of our colleagues said this is just there's always something there is so many different parts. So I think we have the opportunity to get clearer and crisper on what myriad is all about and you should expect to see that in the coming quarters and years as part of <unk> and the other thing I would add too is.

Speaker Change: Got it thanks, guys appreciate it.

Speaker Change: Thank you for your questions.

Speaker Change: <unk> grown up with the with the training and the philosophy of.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Our next question comes from the line of sung genome from Scotiabank.

Speaker Change: We very important part of operating business like in life is being able to do what you say you're going to do so setting our expectations in being able to meet those are meeting our own timelines for our for our state for the sake of our customers the market and for those investors that follow us those are things that we take extremely seriously.

Speaker Change: Hi, Thanks for taking the question either question on Polaris and it's a two parter so all discount on the two questions.

Speaker Change: Just kind of curious what do you think are the biggest misperceptions that are out there amongst the customer base with regards to the FTC and guideline.

Speaker Change: Part of becoming a world class business in this next chapter of myriad. So Mark could you take the GSI question. Please yes, let me add a little bit of color I think as we've stated before gene side is a very.

Speaker Change: Are you having success in terms of having discussion with the customers.

Speaker Change: And kind of clarifying kind of what you believe are the misperception.

Speaker Change: Market sensitive environment, just because of the low awareness level related pharmacogenomics that said because of the UHC hit to our revenues. We did have to make some difficult decisions around lowering the investment within gene site and unfortunately, the timing of us being able to respond to that actually did take place in the beginning of <unk>.

Speaker Change: And then just curious obviously youre very excited about the tectonic partnership.

Speaker Change: But how is that resonating with the customer base currently I don't know if there are any early discussions underway. Thank you.

Mark Friday: Yes, I appreciate the questions Mark why don't you go ahead and start and I can complement as needed.

Speaker Change: First quarter, so due to that lowering of investment having an impact as well as just the disruption that is why we had lower than expected volumes within that within the first quarter, but there wasn't anything about our fundamental business, whereas we've talked about before there isn't any change in our in our provider behaviors either moving forward, but as we did call out we want to make sure that we are.

Speaker Change: The first part and maybe I'll pass it back to Sam on the second but related to the first part.

Speaker Change: Yes, and we've met with our top providers over the over the quarter. There was a lot of confusion around the <unk> guidelines.

Because I think as we've called out before of the 67 different cancer guidelines. It in CCM puts out prostate is the only one that has dimension of this assignment level, one evidence and although it does have its merits. It is relatively new again. It is it is only 167 guidelines had actually has included so there was a lot of key.

Speaker Change: <unk>.

Speaker Change: Okay.

Speaker Change: So we do proper diligence moving forward and that we're focused on profitable growth.

Speaker Change: Because as we've called out before a gene site does have a high zero pay rate and so we want to make sure that we're targeting our sales organizations at our marketing efforts to the right to the right providers and the rate payers.

Speaker Change: Fusion around awarding and so we did have to spend time during the first quarter correcting any confusion that any providers had I.

Speaker Change: Got it thanks, Dave appreciate it.

Speaker Change: Thank you for your questions.

Thank you one moment for our next question.

Speaker Change: I think the good news is for the most part we have that behind us providers.

Speaker Change: Our next question comes from the line of sung <unk> Nam from Scotia Bank.

Speaker Change: Do you understand what the guidelines say theyre also advocating to work with the CCN riders to see if they can get that language clarified we don't expect that clarity to happen in 2025, but we hope that our recommendations will take place going into 2026.

Sung Nam: Hi, Thanks for taking the questions I have a question on Polaris and it's a two parter so all discount on the two questions.

Speaker Change: Just kind of curious what do you think are the biggest misperceptions that are out there amongst the customer base with regards to the NTT and guideline.

With that confusion behind us, we're able to focus on the merits of our test and we do have the highest clinical utility evidence at time of biopsy.

Speaker Change: Are you having success in terms of having discussion with the customers.

Speaker Change: And then as Sam mentioned, there is a lot of excitement even now as we start talking about combining Polaris with <unk> AI technology, Sean that I will turn it back over to Sam Yes, just to add a little bit and to answering the second question that you had.

Speaker Change: And kind of clarifying kind of what you believe are the misperception.

And then just curious obviously youre very excited about the tectonic partnership.

Speaker Change: But how is that resonating with the customer base currently I don't know if there are any early discussions underway. Thank you.

Speaker Change: What we're finding.

Speaker Change: A real good level of interest in anticipation for our combined test.

Speaker Change: Yes, I appreciate the questions Mark why don't you go ahead and start and I can complement as needed, but why don't I take the.

Speaker Change: Part of it I think quite frankly is there was some concern of our level of commitment to prostate cancer and the <unk>.

Speaker Change: The first part and then I'll pass it back to Sam on the second but related to the first part.

Speaker Change: Partnership has helped to reaffirm our commitment long term to prostate cancer and our pipeline now both that that's going to be there starting with.

Speaker Change: Yes, so we've met with our top providers over the over the quarter. There was a lot of confusion around the <unk> guidelines.

Speaker Change: Because I think as we've called out before of the 67 different cancer guidelines at CCM puts out prostate is the only one that has dimension of this assignment level, one evidence and although it does have its merits. It is relatively new again. It is it is only 167 guidelines that actually has included so there was a lot of <unk>.

Speaker Change: At time of biopsy, then post RP so the other thing.

Speaker Change: Our Potomac colleagues have a great network. This is part of why we did our diligence and we chose them in prostate cancer.

A significant number of thought leaders from the space that are leaders in key academic.

Speaker Change: Fusion around awarding and so we did have to spend time during the first quarter correcting any confusion that any providers had.

Speaker Change: Medical centers related to prostate cancer, we actually get the combined benefit of what both myriad brings empathetic brings.

I think the good news is for the most part we have that behind us providers.

Speaker Change: To start building a new narrative of what our combined test is going to be able to do to really serve patients.

Speaker Change: Do you understand what the guidelines say theyre also advocating to work with the CCN riders to see if they can get that language clarified we don't expect that clarity to happen in 2025, but we hope that their recommendations will take place going into 2026, so without confusion behind us where you are.

Speaker Change: Thank you.

Speaker Change: Thank you welcome.

Speaker Change: One moment for our next question.

Speaker Change: Our next question comes from the line of Andrew Cooper from Raymond James.

Andrew Cooper: Hey, everybody. Thanks for the time, a lot's already asked and maybe I'll just try.

Speaker Change: To focus on the merits of our task and we do have the highest clinical utility evidence at time of biopsy.

Andrew Cooper: One more time on the genotype piece it sounds like the impact of the actual change here isn't anything with United as much as it is.

Speaker Change: And then as Sam mentioned, there is a lot of excitement even now as we start talking about combining Polaris with <unk> AI technology. So on that I will turn it back over to Sam Yes, just to add a little bit and to answering the second question that you had.

Andrew Cooper: Re prioritization of some of the sales force. So is that correct and then can you just frame for us the actual kind of dollars and cents impact of that $35 million guidance reduction coming from that.

Andrew Cooper: And then a.

Andrew Cooper: A follow up from there.

Sam: What we're finding.

Sam: A real good level of interest and anticipation for our combined test.

Scott Leffler: Yes, and I appreciate the question Scott to you do you undertake the question, yes, so with respect to the first part.

Sam: Part of it I think quite frankly is there was some concern of our level of commitment to prostate cancer and.

Andrew Cooper: I think youre thinking about it the right way for those two.

Andrew Cooper: Elements to the gene site narrative right now there is the.

Sam: The partnership has helped reaffirm our commitment long term to prostate cancer and a pipeline now both that thats going to be there starting with.

Andrew Cooper: Kind of headline AFP impact of the change in United's policy, which landed there was an impact of $10 million for the quarter and Thats in line with what we had anticipated and what had been incorporated into our previous guidance.

At time of biopsy, then post RP.

Sam: The other thing.

Andrew Cooper: Is different in terms of the June <unk> site right now is the reduced volume expectation and that is a significant part of the $35 million reduction in our 2025 revenue guide.

Speaker Change: Our Potomac colleagues have a great network. This is part of why we did our diligence and we chose them in prostate cancer.

Speaker Change: A significant number of thought leaders from the space that are leaders in key academic.

Andrew Cooper: We're not going to breakout the individual components with generally what I'll tell you that the gene site volume view.

Speaker Change: Medical centers related to prostate cancer, we actually get the combined benefit of what both myriad brings empathetic brings.

Andrew Cooper: <unk> volume view and the performance the slower ramp in terms of our unaffected regulatory cancer testing volume are the two major contributors to that $35 million detriment to our revenue guidance.

Speaker Change: To start building a new narrative of what our combined test is going to be able to do to really serve patients.

Speaker Change: Thank you.

Andrew Cooper: Okay helpful.

Speaker Change: One moment for our next question.

Speaker Change: And then maybe just on a positive note first Jean launch you've put a pretty firm date on here by July I think you said, so maybe Sam for you you talked about.

Moderator: Our next question comes from the line of Andrew Cooper from Raymond James.

Andrew Cooper: Hey, everybody. Thanks for the time of loss already asked so maybe I'll just.

Andrew Cooper: <unk> kind of.

Andrew Cooper: Sorry, one more time on the genotype piece it sounds like the impact of the actual change here isn't anything with United as much as it is youre sort of re prioritization of some of the sales force. So is that correct and then can you just frame for us the actual kind of dollars and cents impact of that $35 million guidance reduction coming from that.

Speaker Change: Hi.

Speaker Change: <unk> on launch timelines and making sure you are on track what have you learned thus far and kind of how do we think about just first launched and what it might inform about.

Speaker Change: How you approach launches still to come.

Speaker Change: Move through the next few years.

Speaker Change: Yes, that's a great question and I think it ties to.

Andrew Cooper: And then a follow up from there.

Andrew Cooper: Yes, and I appreciate the question Scott to you to undertake the question yeah. So with respect to the first part I think youre thinking about it the right way for those two.

Speaker Change: In my framework the pillar on execution were moving towards execution Excellence I think myriad has long been continues to be a company with great science.

Speaker Change: And great intentions, and great colleagues, but really focusing on getting in a in a very deliberate way better on product development all the way from planning a product differ.

Andrew Cooper: Elements to the GSI narrative right now there is the.

Andrew Cooper: Yeah.

Andrew Cooper: The kind of headline ASP impact of the change in United's policy, where it's landed there was an impact of $10 million for the quarter and Thats in line with what we had anticipated.

Speaker Change: Defining it development developing it and bringing it to market.

Andrew Cooper: Incorporated into our previous guidance what is different in terms of the June <unk> site right. Now is the reduced volume expectation and that is a significant part of the $35 million reduction in our 2025 revenue guide.

Speaker Change: To mature that in a way that a number of other companies have and including where.

Speaker Change: <unk> clearly been in a number of my colleagues around the table have been that's the opportunity. That's one of the big opportunities for us to get better.

Andrew Cooper: Sure.

Andrew Cooper: We're not going to breakout the individual components, but generally what I will tell you that the gene state volume view, the evolving change the volume view and the performance of the slower ramp in terms of our unaffected regulatory cancer testing volume are the two major contributors to that $35 million detriment to our revenue guidance.

Speaker Change: And I think it will drive more efficiency it'll it'll drive on the inside and most importantly, it will now enable us to predictably bring products to market on the top first Jean this is it's been delayed as you as you know.

Speaker Change: It will be the beginning and it's going to be a little bit of an iterative process, but there are specific things in a programmatic in a educational way and bringing in also colleagues who have done this and who understand how to guide an organization is part of the deliberate way we're going to get.

Andrew Cooper: Okay helpful.

Andrew Cooper: And then maybe just on a positive note first lien launch you put a pretty firm date on here by July I think you said, so maybe Sam for you you talked about.

Andrew Cooper: The kind of.

Speaker Change: A lot better in a hurry on our timelines.

Andrew Cooper: Credibility on launch timelines and making sure you are on track what have you learned thus far and kind of how do we think about the <unk> launch and what it might inform about.

Speaker Change: Great I'll stop there. Thank you.

Speaker Change: Youre welcome.

Speaker Change: Thank you one moment for our next question.

Andrew Cooper: <unk> approach launches still to come.

Tycho Peterson: Our next question comes from the line of Tycho Peterson from Jefferies.

Andrew Cooper: As we move through the next few years.

Andrew Cooper: Yes, that's a great question and I think it ties to.

Tycho Peterson: Hey, Scott.

Tycho Peterson: One for you just on kind of liquidity you mentioned, it's going to be sufficient to meet operating requirements through the end of the year can you just where do you stand relative to the fixed charge ratio requirement under the ABL and how much cash you need to run the business day to day.

Andrew Cooper: In my framework.

Andrew Cooper: The pillar on execution moving towards execution excellence I think myriad has long been continues to be a company with great science.

Andrew Cooper: And great intentions, and great colleagues, but really focusing on getting in a in a very deliberate way better on product development all the way from planning product.

Tycho Peterson: So we are still above the fixed charge coverage ratio.

Tycho Peterson: Terms of the ABL covenant requirements and then.

Tycho Peterson: In terms of day to day, one of the advantages of the international restructuring that we did last year as we significantly streamlined the working capital requirements of the business and so I would say.

Andrew Cooper: Defining it development developing it and bringing it to market.

To mature that in a way that a number of other companies have and including where I have clearly been in a number of my colleagues around the table have been that's the opportunity. That's one of the big opportunities for us to get better.

Tycho Peterson: I don't think were going to commit to a number that we need to run the business, but it's very modest relative to historical requirements and I'll just emphasize what I said in the prepared comments, which is that we have sufficient liquidity to meet our projected needs for 2025.

Andrew Cooper: And I think it will drive more efficiency it'll it'll drive on the inside and most importantly, it will now enable us to predictably bring products to market on the top first Jean this is it's been delayed as you as you know.

Speaker Change: Okay, and then follow up is just on.

On guidance two things one are you assuming.

Andrew Cooper: It'll be at the beginning.

Andrew Cooper: Going to be a little bit of an iterative process, but there are specific things in a programmatic in a educational way and bringing in also colleagues who have done this and who understand how to guide an organization is part of the deliberate way we're going to.

Speaker Change: Assuming kind of further pricing pressure.

Speaker Change: Anything kind of tied to catch.

Speaker Change: Catch up.

Speaker Change: Payments that you've flagged this quarter and then are you, saying anything about the ERP I mean, it wasn't that long ago at JP Morgan.

Lay out double digit revenue growth, 70% margins what are your kind of thinking about the <unk> at this point.

Andrew Cooper: We get a lot better in a hurry on our timelines.

Speaker Change: Maybe Scott you start with the first one and I could talk about the <unk> after that.

Andrew Cooper: Great I'll stop there. Thank you.

Andrew Cooper: Youre welcome.

Speaker Change: Yes.

Andrew Cooper: Thank you one moment for our next question.

Speaker Change: There may have been some confusion over some of the drivers of ASP, but overall.

Andrew Cooper: Our next question comes from the line of Tycho Peterson from Jefferies.

Speaker Change: Not anticipating any we're not experiencing nor are we anticipating any kind of incremental headwind and our rate environment again, the underlying rates remain healthy.

Speaker Change: Hey, Scott.

Speaker Change: One for you just on kind of liquidity you mentioned, it's going to be sufficient to meet operating requirements through the end of the year can you just where do you stand relative to the fixed charge ratio requirement under the ABL and how much cash do you need to run the business day to day.

Speaker Change: The year over year headwind that we have first of all related to <unk>, which was obviously known and then also in Q1 of last year. We had some favorability from out of period favorability that did not repeat in Q1 of this year and so it created a year over year headwind, but it wasn't representative.

Speaker Change: So we are still above the fixed charge coverage ratio.

Speaker Change: In terms of the ABL covenant requirements and then.

Speaker Change: Negative development. This year. So we continue to be optimistic about the rate environment and thats reflected in our full year guidance.

Speaker Change: In terms of day to day, one of the advantages of the international restructuring that we did last year is.

Speaker Change: Yes quickly on the ERP.

Speaker Change: Significantly streamline the working capital requirements of the business and so I would say.

Speaker Change: Though we're going to.

Speaker Change: Get more clear and do the work during our strategy refresh as I've already alluded to before based on our performance and our guidance that we just spoke about the <unk>.

Speaker Change: I don't think were going to commit to a number that we need to run the business, but it's very modest relative to historical requirements and I'll just emphasize what I said in the prepared comments, which is that we have sufficient liquidity to meet our projected needs for 2025.

Speaker Change: Active markets again that we're participating in our capabilities our access into those markets and the new products, which we've talked a little bit about that we know are coming the timing of those over a multi three year plus period at this point feel confident in the high single digit to low double digit, but we will refine that more.

Speaker Change: Okay, and then follow up is just.

Speaker Change: On guidance two things one are you.

Speaker Change: Chairman, assuming kind of further pricing pressure.

Speaker Change: Or get clearer on that as we go through our strategy refresh work over the next few months.

Speaker Change: Anything kind of tied to prior ketchup paint.

Speaker Change: Payments that you've flagged this quarter and then are you, saying anything about the ERP I mean, it wasn't that long ago at Jpmorgan, you did kind of lay out the double digit revenue grew 70% margins what are your kind of thinking about the <unk> at this point.

Speaker Change: Thanks.

Speaker Change: Thank you one moment for our next question.

Our next question comes from the line of newly from UBS.

Speaker Change: Great.

Speaker Change: Maybe Scott you start with the first one and I could talk about the ERP after that.

Speaker Change: My question.

Speaker Change: Click on the Colorado.

Speaker Change: Yes.

Speaker Change: Alright, Atari cancer cell.

Speaker Change: There may have been some confusion over some of the drivers of ASP.

Speaker Change: Please state that you are giving out a lot of example in terms of like how the EMR integration I wonder how many accounts are they being comparator, meaning like adding that feature.

Speaker Change: Overall, we're not anticipating any we're not experiencing nor are we anticipating any kind of incremental headwind and our rate environment again, the underlying rates remain healthy.

Speaker Change: So what I'm asking is just like how do you actually capitalize it does not like the timeline of the ramp is there any risk that you can get like push push out all light any longer.

Speaker Change: The year over year headwind that we have first of all related to gene So United which is obviously known and then also in Q1 of last year. We had some favorability from out of period favorability that did not repeat in Q1 of this year and so it created a year over year headwind, but it wasn't representative any negative development. This year. So we continue to be optimistic.

Speaker Change: Are the risks to the guidance. Thank you.

Speaker Change: Yes, I appreciate the question.

Mark Friday: At a high level before maybe mark I hand, it to you.

Mark Friday: We as you know we serve thousands of health care providers and customers and a subset of those are for unaffected hereditary cancer, and thats, where markets, providing the guidance or excuse me the detail about.

Speaker Change: About the rate environment, and Thats reflected in our full year guidance.

Speaker Change: Yes quickly on the ERP.

Speaker Change: Though we're going to.

Speaker Change: Get more clear and do the work during our strategy refresh as I've already alluded to before based on our performance and our guidance that we just spoke about the attractive markets again that we're participating in our capabilities our access into those markets and the new products, which we've talked a little bit about that that we know are coming at the time.

Mark Friday: The workflow related matters that we're working through but we've contemplated or.

Mark Friday: A lot of that puts and takes within within our guidance that so I'll, just say that at a high level, but mark I don't know what other color unit at <unk>.

Speaker Change: Yes, Im not sure I can give any more color because Sam just mentioned there is literally thousands of providers and as we stated in.

Speaker Change: Of those over a multi three year plus period at this point feel confident in the high single digit to low double digit, but we'll refine that more.

Speaker Change: In Q4 of last year alone, we integrated over 4500 accounts. So I guess, what I would say is that the EMR integrations account by account level. It is it is.

Speaker Change: Or get clearer on that as we go through our strategy refresh work over the next few months.

Speaker Change: Is material to our overall unaffected hereditary cancer growth and we are going account by account I would say that some of the workflow challenges that I called out we can address this year specifically in Q2 Q3. So we will be implementing some different workflow workflow solutions that will definitely have a positive impact.

Speaker Change: Thanks.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Our next question comes from the line of Louis <unk> from UBS.

Louis: Great. Thank you for taking my question.

Speaker Change: Just very quick on the <unk>.

Speaker Change: Alright, Atari a cancer cell.

Speaker Change: <unk>.

Speaker Change: That said across all of our account basis. It is going to be an ongoing effort that we are expecting to see positive momentum coming from those.

Speaker Change: Please state that you're giving out a lot of example comes from by how the EMR integration I.

Speaker Change: I wonder how many accounts are they being converted or meaning like adding that feature.

Speaker Change: Our efforts as well as Sam mentioned, the hereditary breast cancer risk assessment programs that we've also had some positive results in Q1 as well Hey, just one thing to add this is an illustration of.

Speaker Change: Asking is just like how do you actually like it does not like the timeline of the ramp is there any risk that you can get light push push out all light any longer.

Speaker Change: Our intention to be even more.

Speaker Change: What are the risks to the guidance. Thank you.

Speaker Change: Deliberate in our prioritization.

Speaker Change: Yeah No I appreciate the question.

Speaker Change: Whereas in it is important to continue integrating these.

Speaker Change: At a high level before maybe mark I hand, it to you.

Speaker Change: These customers these providers onto their chosen Emr's. We are very explicitly now we've had a number of working sessions to say how do we solve for first and foremost the most important high volume customers for those workflow challenges that mark alluded to so that's a priority and we will continue to add more EMR integrations, but even more so.

Speaker Change: <unk>.

Speaker Change: As you know, we serve thousands of health care providers and customers and a subset of those are for unaffected hereditary cancer, and that's where mark is providing the guidance or excuse me the detail about the workflow related matters that we're working through but we've contemplated.

Speaker Change: Focused on ensuring that we provide customers what they need to be able to really.

Speaker Change: A lot of that puts and takes within within our guidance that so I'll, just say that at a high level, but mark I don't know what other color you might add.

Speaker Change: Order more tests have a seamless experience and therefore help us increase our volume.

Speaker Change: Okay.

Speaker Change: Yes, Im not sure I can give any more color because Sam just mentioned there is literally thousands of providers and as we stated in.

Speaker Change: Got it thank you.

Speaker Change: Thank you one moment for our next question.

Speaker Change: In Q4 of last year alone, we integrated over 4500 accounts. So I guess, what I would say is that the EMR integrations account by account level.

Speaker Change: Our next question comes from the line of <unk> <unk> from Guggenheim Securities.

Richard: Hi, This is Richard on for Steve <unk> Guggenheim, Thanks for taking our questions.

Speaker Change: It is material to our overall unaffected hereditary cancer growth and we are going account by account.

Speaker Change: On women's health, So first it looks like women's health Asps were up.

Speaker Change: I would say that some of the workflow challenges that I called out we can address this year specifically in Q2 Q3. So we will be implementing some different workflow workflow solutions that will definitely have a positive impact.

Speaker Change: Around 10% year over year in the quarter, how much of that was from an ITT and how much of that was from carrier screening and then on carrier screening at a conference. In March you said you were seeing some progress with commercial payers that we're starting to move towards covering expanded carrier screening could you elaborate on that progress and how much ASP lift do you think that you could see from this reimbursement ahead of <unk>.

Speaker Change: That said across all of our account basis. It is going to be an ongoing effort that we are expecting to see positive momentum coming from those.

Speaker Change: <unk> guidelines inclusion and then I'll follow up.

Speaker Change: <unk> efforts as well as as Sam mentioned hereditary breast cancer risk assessment programs that we've also had some positive results in Q1 as well Hey, just one thing to add this is an illustration of.

Scott Leffler: I appreciate the question Scott.

Speaker Change: Yes, so so yes.

Speaker Change: Overall organic underlying rate environment is very favorable for the prenatal side of the business is coming from both of the sub.

Speaker Change: Our intention to be even more.

Deliberate in our prioritization.

Speaker Change: Subcategories of testing that you were referencing we also have some favorable mix that's impacting the ASP environment, we're not going to break down the individual contributions of each product, but just to say that we have positive momentum across the portfolio and that's consistent with what we saw throughout 2024 as well.

Speaker Change: Whereas in it is important to continue integrating these.

Speaker Change: These customers these providers onto their chosen <unk>. We are very explicitly now we've had a number of working sessions to say how do we solve for first and foremost the most important high volume customers for those workflow challenges that mark alluded to so that is a priority and we will continue to add more EMR integrations, but even more so.

Speaker Change: I think in terms of the incremental tailwind that we've got so yes. We had mentioned that we were seeing some incremental coverage wins.

Speaker Change: Focused on ensuring that we provide customers what they need to be able to really.

Speaker Change: Advance of any kind of guideline change and we expect to continue to see more of that but I don't think were ready to quantify that yet.

Speaker Change: Order more tests have a seamless experience and therefore help us increase our volume.

Speaker Change: Okay.

Got it thank you.

Speaker Change: Understood I'm not quantifying it but then just one follow up then on the guidelines inclusion do you have any updated expectations with respect to <unk> guidelines inclusion for expanded carrier screening is youre expecting about this eurostar. Thanks.

Speaker Change: Thank you one moment for our next question.

Speaker Change: Our next question comes from the line of Sue.

Speaker Change: From Guggenheim Securities.

Speaker Change: Hi, This is <unk> on for Sue.

Speaker Change: We continue to track and anticipate and be fully prepared for for that inclusion, but unfortunately, we don't I don't think we have any specific until that isn't already out there. So.

Speaker Change: Hi, Thanks for taking our questions I have a couple on women's health. So first it looks like women's health Asps were up.

Speaker Change: Around 10% year over year in the quarter, how much of that was from an ITT and how much of that was from carrier screening and then on carrier screening at a conference. In March you had said you were seeing some progress with commercial payers that we're starting to move towards covering expanded carrier screening could you elaborate on that progress and how much ASP lift do you think that you can see from this reimbursement ahead of <unk>.

Speaker Change: We are ready and prepared there'll be a good guy when it happens.

Speaker Change: Okay.

Speaker Change: Thanks.

Speaker Change: Thank you at this time I would now like to turn the conference back over to Matt Scanlon for closing remarks.

Speaker Change: <unk> guidelines inclusion and then I'll follow up.

Matt Scanlon: Okay. Thanks, Gigi and this concludes our earnings call a replay will be available via webcast on our website for one week. Thank you again for joining US. This afternoon, we'll talk to you soon.

Scott: Appreciate the question Scott.

Speaker Change: Yes, so so yes.

Speaker Change: Overall organic underlying rate environment is very favorable for the prenatal side of the business is coming from both of the <unk>.

Matt Scanlon: This concludes today's conference call. Thank you for participating you may now disconnect.

Speaker Change: Categories of testing that you were referencing we also had some favorable mix that's impacting the ASP environment, we're not going to break down the individual contributions of each product, but just to say that we have positive momentum across the portfolio and that's consistent with what we saw throughout 2024 as well.

Speaker Change: I think in terms of the incremental tailwind that we've got so yes. We had mentioned that we were seeing some incremental coverage wins in advance of any kind of guideline change and we expect to continue to see more of that but I don't think were ready to quantify that yet.

Speaker Change: Yes.

Speaker Change: Expecting about this eurostar thanks.

Speaker Change: We continue to track and anticipate and be fully prepared.

Speaker Change: Or for that inclusion but.

Speaker Change: Fortunately, we don't I don't think we have any specific intel that isn't already out there. So.

Speaker Change: We are ready and prepare there'll be a good guy when it happens.

Speaker Change: Okay.

Speaker Change: Thanks.

Speaker Change: Thank you at this time I would now like to turn the conference back over to Matt <unk> for closing remarks.

Speaker Change: Okay. Thanks, Gigi and this concludes our earnings call a replay will be available via webcast on our website for one week. Thank you again for joining US. This afternoon, we will talk to you soon.

Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.

Speaker Change: Good.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

Q1 2025 Myriad Genetics Inc Earnings Call

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