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Transcript of Myriad Genetics Corporate Presentation - Amazon Web Services .©2019 Myriad Genetics, Inc. All...

Myriad Genetics Corporate PresentationJanuary 7, 2019

2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com

Forward Looking Statement

Some of the information presented here today may contain projections or

other forward-looking statements regarding future events or the future

financial performance of the Company. These statements are based on

managements current expectations and the actual events or results may differ

materially and adversely from these expectations. We refer you to the documents

the Company files from time to time with the Securities and Exchange

Commission, specifically, the Companys annual reports on Form 10-K, its

quarterly reports on Form 10-Q, and its current reports on Form 8-K. These

documents identify important risk factors that could cause the actual results to

differ materially from those contained in the Companys projections or forward-

looking statements.

2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com

Our Vision

The global leader in personalized medicine

A trusted advisor

transforming patients lives worldwide

with pioneering molecular diagnostics

2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com

Myriad Leads Personalized Medicine IndustryUnique Scale and Expertise Creates Sustainable Competitive Advantage

4M27

only profitable R&D

driven personalized

medicine company

tests performed;

unmatched reputation

for quality

employees dedicated

to the Myriad mission

scientific publications

to date; extensive

research capabilities

expertise with all

three types of

biomarkers (DNA,

RNA and proteins)

only personalized

medicine company with

broad regulatory

experience

ordering physicians

since inception; deep

relationships

of U.S. payers

are in-network

OVER

1 ~3K 1KOVER

3 1 100KOVER

>95%

countries have

ordered our

products

143

years since company

was founded in 1991

2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com

Myriads Strategy

Answering patients

most pressing questions4 Will I get a disease?

Do I have a disease?

Should I treat this disease?

How should I treat this disease?

In medical specialties6 Womens Health

Neuroscience

Oncology

Autoimmune

Urology

Dermatology

2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com

Most Attractive Product Pipeline in Diagnostic Industry11 Products Addressing $30B of Global Market Potential

PRODUCT KEY QUESTION ANSWERED DISTRIBUTIONGLOBAL

TAMKEY RECENT DEVELOPMENT

Will I get cancer? $5.0BLaunch of riskScore - 4th epoch in

hereditary cancer testing

What drugs will work best for my

depression?$10.0B

GeneSight GUIDED study accepted for

publication

Is my child at risk for a genetic

condition?$4.0B 3x expansion in sales team in 3Q19

Is my RA under control? $3.0BDemonstrated 3-5x better than any other

disease activity measure

Do I have an aggressive form of

prostate cancer?$1.5B

New NCCN guidelines led to new

coverage from commercial payers

covering over 24M lives

How aggressive is my breast

cancer and how should I treat it?$0.7B

>90% of commercial payers now cover the

test

Am I a good candidate for a PARP

inhibitor?$5.0B

New CDx indication in metastatic breast

cancer; Japanese approval in metastatic

breast cancer

Is this skin lesion melanoma? $0.8BEight commercial payer decisions and

proposed Medicare LCD

Oncolo

gy

Wom

ens

Health

Neuro

scie

nce

Auto

imm

une

Uro

logy

Derm

ato

logy

2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com

Critical Success Factors to Achieve Strategic Goals

Expand reimbursement

coverage for new products

Build upon solid hereditary

cancer foundation

Increase RNA kit revenue

internationally

Improve profitability with

Elevate 2020STRATEGIC

GOALS

>10%REVENUE GROWTH

7 PRODUCTS

>$50M

>10%INTL

REVENUE

>30%OPERATING

MARGIN

Grow new product volume

2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com

$0

$50

$100

$150

1Q18 2Q18 3Q18 4Q18 1Q19

HEREDITARY CANCER REVENUE*

Growing Volume, Increasing TAM, and Stable Pricing

Solid Foundation in Hereditary Cancer Market

* ASC606 Revenue

Growing Volume

Market less than 15% penetrated

7% CAGR since FY13

7 sequential quarters with YoY growth

New indications added 175,000 eligible patients per

year in the U.S. and Japan

riskScore driving deeper penetration

Stable Pricing Outlook

4 consecutive quarters with stable pricing

Long term contracts provide stable pricing into FY20

UNH contract fixed until FY21

Smaller price premium easily justifiable

2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com

Diversification with Rapidly Expanding New Product Volume>5x Volume Growth Over Last Five Years

0

200

400

600

800

1,000

1,200

FY13 FY18

Te

st V

olu

me

(in

00

0s)

Hereditary Cancer New Products Prenatal

New Product Diversification (including Prenatal)

76% of volume in FY18 vs. 1% in FY13

42% CAGR FY13-FY18

Consistent double-digit organic new product

volume growth

FY18 revenue growth:

GeneSight up 59%

Vectra DA up 31%

Prolaris up 73%

EndoPredict up 16%

Counsyl acquisition (closed in FY19) further

diversifies the company into high-growth prenatal

market

2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com

Markets Remain Highly Underpenetrated

New Products Have Outstanding Growth Prospects

VOLUME RELATIVE TO GLOBAL MARKET OPPORTUNITY

15%

Hereditary Cancer

6% 2% 1%

2% 5% 1%

2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com

0% 25% 50% 75% 100%

FY17 Coverage FY18 Added Coverage

Current Reimbursed Addressable Market (RAM) >$1.6B

Increasing Payer Coverage Fuels Growth Potential

CURRENT U.S. COVERAGE RAM1 TAM2

$240M $260M

$330M $600M

$720M $3,000M

$4M $450M

$300M $5,000M

1 Reimbursed Addressable Market

2 Total Addressable Market

Recent Payer Progress

EndoPredict NCCN guidelines and payer

coverage decisions increase to 90%

NCCN guidelines for Prolaris increase Medicare

and commercial coverage to 55%

myPath Melanoma receives draft LCD from

Medicare which would increase coverage to 35%

Prenatal average risk receives positive tech

assessment from BCBS

Acceptance of GeneSight GUIDED study

CareFirst covers GeneSight

2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com

45% Five-year CAGR

Steady International Growth Led by Kit Products

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

FY13 FY14 FY15 FY16 FY17 FY18

INTERNATIONAL PRODUCT REVENUE

PR

OD

UC

T R

EV

EN

UE

(IN

MIL

.)

Near-Term Growth Drivers

Approval for BRACAnalysis CDx in

metastatic BC in Japan

Filed for Japanese regulatory approval for

hereditary cancer testing (>3M eligible

patients)

Positive NICE recommendation for

EndoPredict reimbursement in UK

Potential EndoPredict reimbursement

decisions in Germany and Italy in CY20

2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com

Exceeded $50M Program Goal in Only Five Quarters

Meaningful Profitability Improvement Through Elevate 2020

Elevate 2020 Progress

All business units except Dermatology now

profitable

Operating margins have increased 550 bp

since inception of the program

Vectra and International laboratory moves

completed at the end of the fiscal 2Q19

TO

TA

L E

XP

EN

SE

S (

$M

)*

AD

JU

ST

ED

OP

ER

AT

ING

MA

RG

IN*

10%

12%

14%

16%

18%

20%

22%

24%

26%

$130

$135

$140

$145

$150

$155

$160

4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

Expenses Adj. OM

24.0%

18.5%

* Excludes Counsyl

2019 Myriad Genetics, Inc. All rights reserved.. www.Myriad.com

Financial Overview

2019 Myriad Genetics, Inc. All rights reserved.. www.M