mygn-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________

FORM 10-Q

_________________________________________

(Mark One)


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

For the quarterly period ended March 31, 2022


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

For the transition period from to

Commission file number: 0-26642

_________________________________________

MYRIAD GENETICS, INC.

(Exact name of registrant as specified in its charter)

_________________________________________

Delaware

(State or other jurisdiction

of incorporation or organization)

320 Wakara Way, Salt Lake City, UT

(Address of principal executive offices)

87-0494517

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

84108

(Zip Code)

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

_________________________________________

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

Title of each class

Trading
Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

MYGN

Nasdaq Global Select Market

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

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

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

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

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

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

As of April 29, 2022, the registrant had 80,343,165 shares of $0.01 par value common stock outstanding.

MYRIAD GENETICS, INC.

INDEX TO FORM 10-Q


		Page
	PART I - Financial Information

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets as of March 31 , 202 2 (unaudited) and December 31, 20 21	4

	Condensed Consolidated Statements of Operations for the three months ended March 31 , 202 2 and 202 1 (unaudited)	5

	Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2022 and 202 1 (unaudited)	6

	Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2022 and 202 1 (unaudited)	7

	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 202 1 (unaudited)	8

	Notes to Condensed Consolidated Financial Statements (unaudited)	9

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30

Item 4.	Controls and Procedures	30

	PART II - Other Information

Item 1.	Legal Proceedings	32

Item 1A.	Risk Factors	32

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32

Item 3.	Defaults Upon Senior Securities	32

Item 4.	Mine Safety Disclosures	32

Item 5.	Other Information	32

Item 6.	Exhibits	33

	Signatures	34

Table of Contents

MYRIAD GENETICS, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in millions)


	March 31, 2022		December 31, 2021
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	165.2	$	258.4
Marketable investment securities	103.2		81.4
Trade accounts receivable	101.7		91.3
Inventory	15.6		15.3
Prepaid taxes	18.8		18.4
Prepaid expenses and other current assets	22.9		20.0
Total current assets	427.4		484.8
Operating lease right-of-use assets	70.9		81.8
Long-term marketable investment securities	70.8		59.0
Property, plant, and equipment, net	45.7		43.5
Intangibles, net	393.6		404.1
Goodwill	238.8		239.2
Other assets	8.2		8.3
Total assets	$	1,255.4	$	1,320.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	27.1	$	29.6
Accrued liabilities	124.8		156.5
Current maturities of operating lease liabilities	13.4		13.0
Deferred revenues	0.7		5.2
Total current liabilities	166.0		204.3
Unrecognized tax benefits	28.0		27.9
Long-term deferred taxes	29.9		35.8
Noncurrent operating lease liabilities	76.5		79.3
Other long-term liabilities	4.9		5.6
Total liabilities	305.3		352.9
Commitments and contingencies
Stockholders’ equity:
Common stock, 80.3 million and 80.0 million shares outstanding at March 31, 2022 and December 31, 2021, respectively	0.8		0.8
Additional paid-in capital	1,231.6		1,226.3
Accumulated other comprehensive loss	(7.6)		(5.1)
Accumulated deficit	(274.7)		(254.2)
Total Myriad Genetics, Inc. stockholders’ equity	950.1		967.8
Non-controlling interest	—		—
Total stockholders' equity	950.1		967.8
Total liabilities and stockholders’ equity	$	1,255.4	$	1,320.7

See accompanying notes to Condensed Consolidated Financial Statements.

Table of Contents

MYRIAD GENETICS, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (unaudited)

(in millions, except per share amounts)


	Three months ended March 31,
	2022		2021
Revenues:
Molecular diagnostic testing	$	164.9	$	159.6
Pharmaceutical and clinical services	—		13.5
Total revenue	164.9		173.1
Costs and expenses:
Cost of molecular diagnostic testing	48.0		44.1
Cost of pharmaceutical and clinical services	—		6.2
Research and development expense	21.2		23.1
Selling, general, and administrative expense	110.6		146.4
Goodwill and long-lived asset impairment charges	10.7		—
Total costs and expenses	190.5		219.8
Operating loss	(25.6)		(46.7)
Other income (expense):
Interest income	0.1		0.2
Interest expense	(0.9)		(3.0)
Other	—		(0.1)
Total other income (expense), net	(0.8)		(2.9)
Loss before income tax	(26.4)		(49.6)
Income tax benefit	(5.9)		(10.1)
Net loss	(20.5)		(39.5)
Net loss attributable to non-controlling interest	—		—
Net loss attributable to Myriad Genetics, Inc. stockholders	$	(20.5)	$	(39.5)
Net loss per share:
Basic and diluted	$	(0.26)	$	(0.52)
Weighted average shares outstanding:
Basic and diluted	80.1		76.0

See accompanying notes to Condensed Consolidated Financial Statements.

Table of Contents

MYRIAD GENETICS, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Loss (unaudited)

(in millions)


	Three months ended March 31,
	2022		2021
Net loss attributable to Myriad Genetics, Inc. stockholders	$	(20.5)	$	(39.5)
Unrealized loss on available-for-sale debt securities, net of tax	(1.3)		(0.2)
Change in foreign currency translation adjustment, net of tax	(1.2)		(1.1)
Comprehensive loss	(23.0)		(40.8)
Comprehensive loss attributable to Myriad Genetics, Inc. stockholders	$	(23.0)	$	(40.8)

See accompanying notes to Condensed Consolidated Financial Statements.

Table of Contents

MYRIAD GENETICS, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity

(in millions)


	Common stock		Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit		Myriad Genetics, Inc. Stockholders’ equity
BALANCES AT DECEMBER 31, 2020	$	0.8	$	1,109.5	$	(2.3)	$	(227.0)	$	881.0
Issuance of common stock under stock-based compensation plans, net of shares exchanged for withholding tax	—		26.0		—		—		26.0
Stock-based payment expense	—		9.0		—		—		9.0
Net loss	—		—		—		(39.5)		(39.5)
Other comprehensive loss, net of tax	—		—		(1.3)		—		(1.3)
BALANCES AT MARCH 31, 2021	$	0.8	$	1,144.5	$	(3.6)	$	(266.5)	$	875.2











BALANCES AT DECEMBER 31, 2021	$	0.8	$	1,226.3	$	(5.1)	$	(254.2)	$	967.8
Issuance of common stock under stock-based compensation plans, net of shares exchanged for withholding tax	—		(4.8)		—		—		(4.8)
Stock-based payment expense	—		10.1		—		—		10.1
Net loss	—		—		—		(20.5)		(20.5)
Other comprehensive loss, net of tax	—		—

SEC Form 10-Q filed by Myriad Genetics Inc.