mygn-20230331

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, 2023


☐			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 28, 2023, the registrant had 81,555,161 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, 2023 (unaudited) and December 31, 2022	4

	Condensed Consolidated Statements of Operations for the three months ended March 31 , 202 3 and 202 2 (unaudited)	5

	Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2023 and 2022 (unaudited)	6

	Condensed Consolidated Statements of Stockholders’ Equity for the three months ended M arch 3 1 , 202 3 and 202 2 (unaudited)	7

	Condensed Consolidated Statements of Cash Flows for the three months ended March 31 , 202 3 and 202 2 (unaudited)	8

	Notes to Condensed Consolidated Financial Statements (unaudited)	9

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31

Item 4.	Controls and Procedures	32

	PART II - Other Information

Item 1.	Legal Proceedings	33

Item 1A.	Risk Factors	33

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35

Item 3.	Defaults Upon Senior Securities	35

Item 4.	Mine Safety Disclosures	36

Item 5.	Other Information	36

Item 6.	Exhibits	36

	Signatures	37

Table of Contents

MYRIAD GENETICS, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in millions)


	March 31, 2023		December 31, 2022
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	53.6	$	56.9
Marketable investment securities	25.1		58.0
Trade accounts receivable	119.1		101.6
Inventory	21.8		20.1
Prepaid taxes	17.6		17.6
Prepaid expenses and other current assets	24.4		20.4
Total current assets	261.6		274.6
Operating lease right-of-use assets	107.0		103.9
Long-term marketable investment securities	30.4		54.8
Property, plant, and equipment, net	96.3		83.4
Intangibles, net	369.4		379.7
Goodwill	287.1		286.8
Other assets	17.5		15.5
Total assets	$	1,169.3	$	1,198.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	36.5	$	28.8
Accrued liabilities	91.7		94.3
Current maturities of operating lease liabilities	15.1		14.1

Total current liabilities	143.3		137.2
Unrecognized tax benefits	28.7		26.8
Long-term deferred taxes	4.1		3.5
Noncurrent operating lease liabilities	146.5		130.9
Other long-term liabilities	11.5		14.5
Total liabilities	334.1		312.9
Commitments and contingencies
Stockholders’ equity:
Common stock, 81.5 million and 81.2 million shares outstanding at March 31, 2023 and December 31, 2022, respectively	0.8		0.8
Additional paid-in capital	1,262.7		1,260.1
Accumulated other comprehensive loss	(7.4)		(8.9)
Accumulated deficit	(420.9)		(366.2)


Total stockholders' equity	835.2		885.8
Total liabilities and stockholders’ equity	$	1,169.3	$	1,198.7

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,
	2023		2022

Testing revenue	$	181.2	$	164.9

Costs and expenses:
Cost of testing revenue	59.2		48.0
Research and development expense	22.5		21.2
Selling, general, and administrative expense	151.7		110.6
Goodwill and long-lived asset impairment charges	—		10.7
Total costs and expenses	233.4		190.5
Operating loss	(52.2)		(25.6)
Other income (expense):
Interest income	0.7		0.1
Interest expense	(0.5)		(0.9)
Other	(0.6)		—
Total other expense, net	(0.4)		(0.8)
Loss before income tax	(52.6)		(26.4)
Income tax expense (benefit)	2.1		(5.9)
Net loss	$	(54.7)	$	(20.5)


Net loss per share:
Basic and diluted	$	(0.67)	$	(0.26)

Weighted average shares outstanding:
Basic and diluted	81.3		80.1

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,
	2023		2022
Net loss	$	(54.7)	$	(20.5)
Change in unrealized loss on available-for-sale debt securities, net of tax	1.2		(1.3)
Change in foreign currency translation adjustment, net of tax	0.3		(1.2)
Comprehensive loss	$	(53.2)	$	(23.0)

See accompanying notes to Condensed Consolidated Financial Statements.

Table of Contents

MYRIAD GENETICS, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity (unaudited)

(in millions)


	Common stock		Additional paid-in capital		Accumulated other comprehensive loss		Accumulated deficit		Myriad Genetics, Inc. Stockholders’ equity
BALANCES AT DECEMBER 31, 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	—		—		(2.5)		—		(2.5)
BALANCES AT MARCH 31, 2022	$	0.8	$	1,231.6	$	(7.6)	$	(274.7)	$	950.1











BALANCES AT DECEMBER 31, 2022	$	0.8	$	1,260.1	$	(8.9)	$	(366.2)	$	885.8
Issuance of common stock under stock-based compensation plans, net of shares exchanged for withholding tax	—		(4.9)		—		—		(4.9)
Stock-based payment expense	—		7.5		—		—		7.5
Net loss	—		—		—		(54.7)		(54.7)
Other comprehensive loss, net of tax	—		—		1.5		—		1.5
BALANCES AT MARCH 31, 2023	$	0.8	$	1,262.7	$	(7.4)	$	(420.9)	$	835.2

See accompanying notes to Condensed Consolidated Financial Statements.

Table of Contents

MYRIAD GENETICS, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (unaudited)

(in millions)


	Three months ended March 31,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(54.7)	$	(20.5)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	19.4		13.0
Non-cash interest expense	0.3		0.2
Non-cash lease expense	2.9		3.1
Tenant improvement allowance received	13.2		—
Stock-based compensation expense	7.5		10.1
Deferred income taxes	0.1		(5.9)

SEC Form 10-Q filed by Myriad Genetics Inc.