Myriad Genetics (MYGN) 28 Feb 232022 Q4 Earnings call transcript

Greetings, and welcome to the Myriad Genetics Fourth Quarter 2022 Financial Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards we will conduct a question and answer session. [Operator Instructions].

As a reminder, this conference is being recorded, Tuesday, February 28, 2023.

to conference like Scalo. to now would turn over the Matt I go Please ahead.

and Myriad to and Good welcome Okay. afternoon, the XXXX Call. Full Earnings Genetics' Year Quarter Four

today. review During we Q&A financial And afterwards, results session. the we'll will we call, a host released

earnings morning Form Our can release X-K investor.myriad.com. at issued our on found website was and this quarterly in be

Executive our Paul I'm call with the Financial Matt And Diaz, President Lambert, Operating Relations. our on our Scalo, Riggsbee, Commercial Senior Verratti, Officer Investor Vice Officer; and Nicole Officer; and Chief today Chief our President are Bryan Officer. of Chief me Chief Mark

presentation. be This note the of presented the can financial a section events, that recording today webcast be information or the other future the contains heard future call performance slide at regarding investor investor.myriad.com. of along And forward-looking company. Please live via or website statements of some in archived our projections will this with

forward are may specifically, and These for of statements current you SEC, events reasons. quarterly reports time these the materially files from to We the current materially to those a from adversely differ or company's with annual time on expectations documents statements. actual variety to differ company Form refer expectations, from factors actual the the documents and the looking results or Form XX-K, the on based that XX-Q contained and on management's risk report our results the Form important on it’s reports identify These X-K. could projections, cause in

the call over With Paul. to turn that, I'll

from call, On you thank and full Thanks, we year. everyone. for Matt. And quarter afternoon, will highlights discuss fourth us. today's the joining Good

plan. strategic updates long-term provide are on also that our initiatives will We the driving growth

and our and their I advance testing year First, work enable to to medicine to better dedication detect, help people control mission and thank their of disease. more health this treat more and hard take make to our and to genetic of precision vision accessible prevent teammates at our for all Myriad providers want

proud organization, their focus the on With have so happening fourth incredibly many how a positive Genetics teams ended our with Myriad across performance. I'm and quarter of our providers. patients the year strong changes kept

volume XX% Testing cash Hereditary reach year. MyRisk year-over-year and to these driven confident GeneSight. believe Total both flow response commercial we and by financial the results well market's double-digit in in as revenue initiatives ability growth this are We in as guidance positive grew our Cancer to our of operating achieve our and growing profitability QX reflect

strong successfully tier of slide continued our closed the our capital pipeline, top We and execution, further. fuel structure integrated talent even commercial and robust acquisition to Additionally, will growth have long-term five. Transitioning with all Gateway gender across continues SneakPeek Genomics, are test Jacobs as team. CEO be commercial Chris DNA excited and Gateway early entire its of The to the well perform to channels. and working

we aim look SneakPeek's to our continue products for with SneakPeek's test disrupting cross-selling In opportunities Myriad XXXX, performance. to rate to will increase NIPS without attachment prequel other and

capabilities commercial amount direct-to-consumer we a other advantage women's to primarily has improved sales plan in models extend and of GeneSight We focus operations of entered incredibly execution. we positive an as of an elements example with with GeneSight take businesses, tremendous across health. momentum our and and this, successful increased SneakPeek the of XXXX on been commercial

listening a providers. patients great job want to done and teams also I to what in our our have point out,

been source to quite way an to they being open the about. with we community re-approach data our move A ClinVar, vocal starting customers notice. genetic have which is We counselor with that strategy great engaged something example and the have are has

the providers during give perception has how of more with will this and Genetics increased about touch also talk the Nicole more engagement and our this, improved customers. on call. let and Myriad examples patients I'll later significantly among Nicole changed

Keeping integrations initiatives about increased starting a patients Everything of make and are EPIC, to the unified ways solutions. improvements to along services is of dividends, like pay customized Complete, portal well. affordability with and website rollout it our of to we and our price Myriad as excited providers transparency when patients upgraded we and us. our at business and finding from EMR out our with you ordering workflow check with for Please the everything easier do center suite to to have substantially chance do

new which few full about in at franchise, these potential. the of things a And instrumental are a bringing we Myriad examples here initiatives hires of that just are will excited the be These to their have number Genetics. we to

With turn increased our Verratti, Mark and over operations to who will Chief to call focus speak the that, Mark? I'll Commercial sales execution. on Officer,

I'd platform. Paul. on like enterprise Slide Thanks, eight, with to our start commercial

customer First, I'd give almost marketing, shout of service and made up from out XXXX outside to which to is commercial and like inside sales, a special personnel. our team, our medical teammates

and technologies patients over quarter, providers hundreds to their solve medical help improve patients. past We've our to team over and aim working making helped providers while engagement that lines. of investments the the XX,XXX significant thousands our commercial in In years been needs reached the tirelessly across product of two with

last to the progress management, the in Turning working. We've intelligence capabilities. Especially team the months what made. best experience, slide market We've how product better use and and multiple help evaluate nine. digital is what done that to not to targeting, our six our troubleshoot and across learn improvements to has customer is made in visualize

to continuing these in starting to to the important this story execute scratch is to areas. improve a platform, we're key from It's And to good note, and from it's going great really constantly with not reaching commercial great. of

they the had much learned providers their past. the doesn't improve commercial is our time to directly The once constantly team and access our ever as team of ability we've landscape Coming out our they've as in pandemic, working is and same the that patients adapt that We've hands on sales had changing connect to and providers have don't products. the either. to learned outside have

patients their of are time and solutions. understand better own healthcare spending and to products researching more Physicians

For example, new we've sales dashboards. and infrastructure tools rebuilt our with salesforce

message exactly needs teams we're targeting, received who our know not commercial whether So or is meeting and of how our patients. our providers the and we're being

these By business in really easier to their do of with. becoming we at needs we're everything center customers do, putting

I'll XX, our talk Slide in to digital platform Turning about more detail.

these spoken success a about the GeneSight. want the as I've GeneSight had give to our out platform team in before, it primarily to to relates digital And for I developing capabilities. they've shout

the want are to that quarters. of to also these start to that highlight the health, you'll upcoming in parts and more of fact transferable I women's other business, see specifically the capabilities happening

this these of help visualize some should capabilities. examples look a take funnel, let's at which digital Now

to you that need total In As importantly, website. traffic leads. by over people to words, greater qualified directly website year, learned XX%, into we see, last who GeneSight can our more learned we've how connect increased how and we've other our to convert traffic

number those the and qualified healthcare to increased sales, website traffic we year marketing by compared year, able better outside orders. both XX% automation our Last sales into patients new of providers. convert from and inside and more leads actual technologies than last Then teams leads tools digital are with from to equipped

outstanding than platform. job developing the of a this leads thank test team to for XX% executing number digital I are again the XXXX, converted These and on just more increased great results In compared by want order doing to XXXX. we to such

physicians core units. lasting proper understand Slide illness families have to how about better to effect XX and talk turn U.S. now helps their in on We'll business Mental fail treatment. continues GeneSight the patients. drugs our suffering will medical receive their those and and other often patients a affect antidepressants as to

new after group, own cheek sample home. of a XX% with be more grew order the volumes In patient this to clinicians an the than test can can in the taken year placed by be the swab quarter, their provider, added we've prior franchise. over the for Importantly as a is performed privacy single GeneSight that X,XXX

be need part medicine Genetics the crisis providing treat accomplishments new in to GeneSight test information in XX.XX patients. medicines Myriad in genome proud significant Prime the study to at health were the list ongoing of QX solution went this to and by a the of The included advances physicians code Care the XXXX. genomic of they mental their pricing into VA effect and [ph] most is in results PLA per

commercial past We'll health Slide year. the We believe GeneSight the of new forward demonstrates our over strategies effectiveness to XX. look of and marketing digital soon. and on implemented women's bringing ongoing capabilities, success our that We business these the women's units move health now initiatives engagement into to centric patient capabilities oncology

of or business productivity cancer, in XX% offers and Myriad testing volume XX% serves are per XXXX. risk we the solutions those who in family. women's up ancestries of planning health QX, Genetics women fourth saw quarterly assessing increase a from by all the for The prenatal With quarter salesperson pregnant of

we revised prenatal due continue accounts we California's In to win screening to prenatal, as headwinds program. back try to of the face state loss

we business prenatal of However, this excited test year. upcoming Genomics our considering carrier remain about our gene recent XX:XX this and and first the later of launch Gateway screening acquisition

demonstrating of excited Myriad XXq prenatal Prequel's at value of College meeting, predictive screens. XX%, in recommendation also the the are deletion competition. about positive ACMG syndrome American Genetics We the higher include Medicine than upcoming much to will all presenting be

to and oncology. now XX, Slide move about Let's talk

patients leading them Reported $XX.X needed with to XX,XXX. information delivered prostate prostate and their physicians important business were for oncology quarter. to market volumes provide the fourth our in continues test in revenue roughly Our reach treatment cancer million diagnosed Prolaris, decisions. cancer, better the

only quarter, each In patients shows additional identifies on identify surveillance Prolaris threshold. that which validated XX% threshold safely third-party hormone volumes based patients the Prolaris and test research year-over-year. can therapy grew is forgo to a for therapy, active including the fourth with test Prolaris more

this how entire you XX. performing XXXX Now across portfolio. Slide great year off see step let's back, a that start can we look so far take in our products have our are of been on some to Taking a a product at

seeing COVID, cannot While was trends this year negatively are year. in businesses positive our ignore the last of the first we impacted far by we so quarter

and our We attribute operations our growth execution capabilities focus sales and very to and increased above committed our team. on significant this commercial all,

this of strive continue capabilities. these full as we potential year will We to the unlock to execute

that, Chief products. turn I'll and Officer, Nicole Operating With our our talk over customers now our to call to the more about Lambert

Mark. talk start and changing Slide XX, our I'd among practitioners. healthcare Genetics of like on Myriad to about Thanks, perceptions

Mark in seeing that a commercial doing improved addition results. that discussed, capabilities the better to our and we to And we processes new results customer been listening engagement and providers. much quarterly the have job patients our also of of In are

should to that what and we we're what needs change want what want can hear to doing. know their hear we They we We feedback. listening to and keep do that better,

we heard we content. example, gene expand our that For needed to

data our to genetic more heard added contribute community, to MyRisk counseling engaged customers sharing responded, test we medical customers primary ClinVar and more we more holistically we needed data announced our broader with We be that the share community. to especially so a genes and the So to recently with and responded. partnership

service as that from taking our to the to action measured Everything by customers providers are promoter it improving our times business to customer we depend make with and on, turnaround scores us. faster listening net to do easier

to XX. Turning Slide

of the providers proud get with among who relative us are year, instability today amount peers to increased accounts our to market fact our and healthcare perception months the for We were tremendous that new opportunity we the six that has are last created at into we've same versus various period we a the the over Myriad general of ago. over

with to look providers our keeping we lot forward at to of a us approach the everything XXXX center of payers while patients, continuous in do. gives and improvement This

Now respect particularly with the the friction efforts across customer to journey. our are points addressing at XX, on slide business, aimed experience

to business make we much listening earlier, at feedback to getting their with to are us. mentioned easier and Paul do our better using As customers it

information Our from call Management are missing Unified to also back ensure System at have but much the it ordering number only we for for of we new the times portal payers, required by that that our us providers makes and order information. it to provider not Order them getting tests easier reduces

medical us payers, that also ensure to we by the in but with required records, Our getting record. those systems others EMR who are often already it patient information that EPIC EMR medical are providers and only which from directly integrations means can are not push

easier Myriad just business examples making do These it are we're of a with few Genetics. how to

through that unified teams have structure journey team ensure and touch our payer our service very also together. way We work team customer from customer the closely the the internal physician that billing to all our markets

Now on that we'll Slide some the products XX, through are discuss pipeline. exciting coming

we faster on and care broader We prenatal the our exclusive FirstGene, are expect next significant to excited impact results, about fewer coverage first FirstGene to generation turnaround a patients. offering. of prenatal Myriad's times From make

portfolio in and current complementary the to patients over X million our is U.S. targets at FirstGene prenatal

launch a quarter fourth for preparing year. are We of the in this

in to our biopsy second also We the of launch plan tumor profiling half liquid for XXX.

as unified that can interpretation With oncology continue benefit a this Myriad our technologies new innovation and and a in solutions, test our provider suite part partners from precise in Genetics experience legacy offering of seamless of of ensure invest will to oncology. of its to results. new We continues customer emerging

on-track Lastly, and Precise XXXX. a with oncology followed introduction of be the by XX with our MRD expect will commercial is Research we which second Only launch, a Use in half partners. pharma in This XX

everything recurrence a to how real-world Genetics between. Cancer XX, building these broader oncology Continuum that can From Precise in to risk of MRD, with You monitoring and needs. high MyRisk aims slide products foundation Myriad to is see Care. Turning the new into with Myriad fit screening address

I that, detail. results it over our QX turn to more to would in to discuss With Brian like financial

Thanks, to by on reviewing Nicole. product volume I'd start trends Slide like XX.

As earlier, cancer Paul each testing fourth mentioned double-digit growth the and in saw quarter. GeneSight hereditary volumes

quarterly growth compared This last volume figure our growth paved testing year full as from testing a categories XXXX. year, in the XX% volume about of well QX as rate product the core for way XX% to

prenatal the recent increased contributions from year-over-year, Gateway quarter, Genomics our volumes acquisition. in Also including XX%

volumes prior modest quarter. sequentially Excluding increased prenatal Gateway, from to the X%

XX, Now a X% from $XXX XXXX our XXXX. million on year Slide increase represents of revenue full

continue of divested investment XXXX gross balance industry manner. as sheet deployed in to from strategic leading margins. year we we Excluding a strong revenue was a disciplined our businesses and maintain

peers. that to addition sets new and a materialize apart the innovation, investments and product acquisition we these invested complements in strength of in In Gateway, current confident will customer our us that way automated We infrastructure, have journey from core remain talent. our

our guidance. Turning to Slide discuss XX to financial now

both guidance released full today, As for first and providing quarter financial the XXXX. we of are year

been While regular to we respect QX. significant going and the basis, a we markets there's forward, don't in additional provide anticipate on recently with to compelled offering quarterly capital guidance volatility felt transparency

Therefore, top-line of revenue growth long term position to XX% we growth in us the believe our well goal reach XXXX. year our assumptions for

and this throughout transformation plan have there gross successfully strong maintained continue margins We our to year. our focus

XXXX. Going quarter first into flat XXXX, from expenses sequentially operating the quarter to adjusted anticipate of remain we fourth of the

per between $X.XX EPS QX of year bottom for in to to to year. the share. be expect line, plan We we adjusted of this profitable Moving loss the range a and $X.XX

Now on Slide XX.

revenue we how have tried We the to as adapting visualize what are keep competitive we see current and our payer and management team to cycle compliant. environment

I Before entire of the call cycle I revenue out start great our though, work first want team. to

their which have almost As collected above $XX previously, transformation journey, of years two million represents payments this the of our over last we team has period cash, of historical out experience. noted

amount as significant, have we was frequently the past more the While highlighted in have this significant. quarter less the those been in amounts

out practice we material amounts. will call to our forward, only update Going

authorization proper this made prior prior obtaining authorization. a prior of a authorization content, Solutions prior variety not making providers providers slide or it Tech is give combat for To complete in for have reasons, including giving support issue, authorization. easier investments the that the to we to process, Moving significant significant hurdle

are provide requiring reimbursement team. more also claims are to Cycle on Payers Rev they our information to willing before patient

us give on this make providers reduce and portal with ordering provider new point order system patient to to all easier for it given a information required payers. unified management Our the friction

may requirement able records, payers. is of to providers provide medical Lastly, be which patient a

us this pain solve point Our investments information. better by EMR integration to and access this giving aim to

Paul turn remarks. now I'll over to it closing for back

laid the XX, call. initiatives the lines Thanks, discussed out most time on for Brian. Slide today of have we On

side, and is and discussed, commercial sales the a a great execution up operation focus as renewed on setting On for Mark XXXX XXXX.

listening. are Nicole of we on action Genetics to providers, are because that we are touch starting Myriad our the not healthcare listen providers, customers patients to improved showing and among perceptions but our just really because we taking

excited features them Liquid to in growing also technologies, how and we can MRD We're uniquely of a of about differentiating share. our win position a fast and number market

at ongoing Balancing is keeping that can small focused something task eye confident innovation once, With organizational not no QX this it's measured and certainly quarter-by-quarter. and reaching we on profitability an remain while and profitability in year. be so growth happening of changes many on

the summarize move Q&A XX to want for to Before strategic we five our the portion takeaways I call, on strength slide of the and context key in advantages.

to growing get paid First, volumes we are how test. our know and quarter every we for consistently

stable. And visibility our Second, products is forward. have into pricing pricing we for moving

to Third, our which out previous margins targets today gross we this investments, specifically year. a we've which as strong a have manage event our management structure in opportunistic disciplined and work we CapEx, cost laid maintain

we to deployment innovation experience, and new effective capabilities, will key customer tools Fourth, our labs capital improve future. product and in of are that commercial enabled the the committed tech areas including

Threat tuck and elevate as products and our finally, like to their potential and in FirstGene, opportunistically acquisitions strategic we for MRD our and clear liquid, look solutions new full growth Genomics. like Gateway out catalysts roll are continue to

this reinforcing quality, margins business industry lab differentiated expertise, of scalable engine commercial a technology data, as All strong best-in-class with management. trusted, our leading specialized research and underpinned and a with by position

Matt turn for I'll over that, With Q&A. back it to

Thanks, our section reconciliation certain be non-GAAP reconciliation of during the Relations measures. A GAAP of the we financial to and as under non-GAAP website. reminder, can our GAAP release and call, Paul. today's non-GAAP found And a financial to of earnings financial use a in results guidance Investor

participation. session a begin ready we're broad Now, to ensure Q&A to

are and we're asking ready one follow-up. ask We now one to Q&A. Operator, start only participants to question please

Company. [Operator Stevens Thank Cowen comes line from question Instructions] Our the first and you. with Tom of

open. is line Your

the taking here. question for Thanks all. Hi,

you conservative, one a of on given that, takes through below bit go the Just kind and was long if on So start plan? follow-up. that it's could of walk we could some hoping more I'll little areas a more there prove your puts your run XXXX guidance, and I

Yes. Thanks the for question.

the product would with give that guide, range, didn't we our end in which the is but guidance in top that's I say at on year-over-year think long-term focused line I growth and XX% of the long-term specific we're guidance plan.

we feel and in So year seen really QX. the about -- good momentum starting we're we've start where that where we the

the out. in driven started primarily again tests, really we here That MyRisk, where have over And Yes. to I that's both right an adoption many QX. the in and clearly continued market continued is pointed hereditary providers the we opening of weeks. as and reports momentum growth point which couple last that's cancer seeing is by the also beginning how QX, product the Mark in for inflection just we're That win most think see our But in and in to QX that I think share generally and continued up

continue at XX% think grow we to GeneSite, plus. we'll

coupled products so the of end next cost contributing our get two growth And lead, products will us hopefully underscore over management said, in we've through the those MyChoice products, quarters. with to And guidance the couple last lots as get growth. and to turnaround upper will the to the of the Brian particularly I'd And the guidance, and disciplined seen months, to of different Prolaris. few continue but again in prenatal so the we as

useful. you your very got That tests have very, I today? got Have quick Great. you follow-up. mean, guide what contemplated kind just in any of - newer was for expectations a any And

for new There's nothing our at guide all. XXXX in

going side. But year. diagnostics half of are guide. We upside happening the have first well We'll beta research. the all do some of We Both existing big conversations for a the products as test have roughly $XX interest be to that whether of products on it's new contemplated as companion there's and pipeline But the new XXXX a as those, back that budgeted of our soft nice MRD into for to biopharma in team. to not well. launches million lot in there's contributors for in XXXX for

I'll in hop the back Great. Thanks queue. much. so

Thank you.

the Sykes from Matt of line comes question next Sachs. with Your Goldman

Your open. line is

Hey, Matt.

within Matt. psychotropic on [ph] landscape particularly of is it Congrats tell date? This mental How you much is where about health tests? share competitive that? for on And to more quarter. market the capturing the us Prashant stands GeneSight Could

Yes, happy sure. I'll be GeneSight. comment on to

have have the pull market within and easiest leader the So continuing the execute GeneSight We competition test continue that to leadership market individuals and to and GeneSight our its make away other to market. market space, to has market do share. XX% by over GeneSight continue from we and tried and in the to the Quest enter maintain has LabCorp providers. best been use But for

Got XXXX revenue half you if thoughts How it. one of you the post in the in how contribution contribution at And any launch? of XXXX? then are revenue XXXX expect progress FirstGene And Thank thinking you. to back follow-up. about that all on and

in Well, launch in modest some contribution the soft with QX investment.

there contemplated investment is that's the we've end which front process of starting that in be there'll already product is to in guidance, So instituted management our some happen.

in ease said I excitement about get and to to around able maternal before, that NIPS diminimus the QX the making more great just of mom test more It's as So real from collect able screening test. sample be product differentiation to science particularly to the it to But and be patients. accessible carrier of contribution FirstGene both launch. use

think a and XXXX. XX%, probably -- So, will the won't be XX% but so about certainly contribute it later more we'll talk meaningful to in but that in so XXXX, more year, we by contributor

Great. Thank you.

from comes Derik of question next of line De Bruin with your And America. Bank the

is line Your open.

[Indiscernible] is for This guys. Hey, Derik. on

that XXXX? you provide maybe color on into any came I off pretty volumes So, we the wanted Can competitive in XXXX? in to PLA we talked how market manage kind I into continuing about the of strong. to these know code How start of think quarter. plan some should pressures last about you HCT

start. I'll

So, has think women cancer in share differentiating easier, without PRS calling The health there. for specifically, MyRisk the meet landscape that with anybody is we the our gotten in visibility that that over that much is for seeing bigger competitors said, future women's a anything. opportunity as size fact expanded pretty the than quite about panel cancer test hereditary of risk there out with risk code competitive comes unaffected because And MyRisk strength we got the years MyRisk, you're technically. growing breast on tests the gave we've and fact gives of We more patients. our channel. which specific we the Nicole have more also MyRisk the frankly but We're to enough for actually the where guidelines affected score,

we and you So, we XXXX MyRisk continuing and add have to visibility think of a lot to in more? would grow

thing would customers look Yes. coming add Paul deeper our stated. as current the and competition. We're stealing well from in The we only both I expanding and to we're that that market, as segments. new seeing QX is exactly we're the volume momentum When are adding by three QX, from our the increases into going what with it customers at all

for there So our else about showing executing the how customers. Myriad up to other new really is about and add we the way good the than feel nothing is really team

one forward. more Maybe looking Great.

think test see a the of Research market been in a bit of that it's Only How lot versus It's the XXXX. you the competitors launch MRD, to middle timing of on a kind Use focus. So, might the commercial good have of with some little full the about investor launch sooner? do in

presented it. we as have it's we'll And for the probably we precision Dale biggest I that Yes. as JPMorgan, see think really do mean, a medicine very competitive at product. opportunity

couple on with of side But academic I be clinical validation. before. diagnostics already, centers research the we're that shortly We'll well. the as our and mentioned coincides on announcing interest the clinical other a work have medical work with work we Our a analytical has companion biopharma on that of lot validation doing gone

XXXX, launch in start XXXX. for a commercial research, looking in contribute meaningfully that we're to then So more XXXX and

I frankly a us realistic have some way company. get think think that's be a that's paved able great the the I some do of to to of for of our And And reimbursement. done timeframe. expertise the quite have great competitors work

working FDA reimbursement, proudness be clearly our bit. Our and But regulatory one and strength through little channel. is a may other of overstating

big but a really some of in for big not good quite integrated with the it. it clinical our does think pay of for customers case do it's there'll for be that get payers practice? So market. piece, we We room should make us. into course I'm many the on frankly, And focused a they only of treatment And how how

to those has last I deliberations. have struggled answering a front product, our and not We've with product questions, are industry really think this management got clinic, something the to terms and in fits proposition of as that the be treatment it center of total cost into their course the and of to those of see care. into able be two to but has well need value payers good

it. you. Got Thank

Instructions] And line the come of your Nephron from with question [Operator will Research. next Meehan Jack

line open. is Your

two part Good you. I on had Thank GeneSight. a question afternoon.

in were first, about So seen Can talk touch, while. a revenue and volume in you move in the that haven't sequential volume trends down a the quarter? Look like

you anything there notable inclusive long-term. of XX% of was there? that kind second, XXXX? plus talked then just So growth And Paul, about Is

Yes. for reasons. different I are mean, there variations quarterly

but have that look, way, company really to -- And so, quarterly, we doesn't I work the that and way we things report system don't run healthcare Jack. out

February parts quarter. first labs. Deductibles the we that There's push start volume. through lot quarter. the got XX a in the on and in of we year plus things for A volume through are to January lot So the of affect moving first

and weekends quarter that working make are gets the overtime by the of is the our reported. to end actually So sure folks demand

probably as is work than GeneSight stand an trying that with So front upward all progress talk about the our that to nothing the is this we're we're of times all momentum. well And industry quarters. that keep on the there coverage making But happening days. couple of able other a while And next be X.X and to of lot future at up and over labs there's great we'll and in mind of happening. keep turnaround

Superb.

ask year. wanted implementation about the code this to Okay. of And the PLA then,

some Medicare other have you So Was you've on there seems method? impact in any they're side, curious terms on relatively non-Medicare straightforward the of might under been collections whether reimbursement where previously the seen rate.

impact Zero all our market of supportive strategy. think there. We it's payer

so And across payers portfolio. good other and product our dialogue of all with United far

track the And as growth confident X% hopefully QX, operating feel we've the said, XX%, a range we bumpy we're said on evidence can so, and into of on and more better And that. of bit right but point cash to of as as XX% that. X% January really within line a certainly good about beginning QX. number, ASP. top reach And After we little talked by Bryan our further got profitability visibility at call, increasing confident, February, that and in going back confidence today, we've flow and to free about

And color it. can this Bryan, you Thank the there any CapEx you. year? for in forecast Got share is

Yes. that, I would of just our you've of laps I as think part last Yes, we've is out Thanks, Jack. seen the building back been capital only year obviously, increase thing in the add the future.

those take around the of middle part of We to possession year. the laboratories expect

So type completed XXXX we of to expect XXXX would normalized to substantially be sort a those in capital to more for and year. for return

the rents to – about think Yes. XXXX down. coming add XXXX, that part to savings, we as And of for and

the to will take where space we we cost a but more as move So, and space, margins, these and lot more it's work can maintain where out efficient XX% automate. improvement the And of of gross going that's expensive to from. into more effective, process come automation

Stephens question Incorporated. the from of your comes line Mason Carrico next And with

open Your line is

at a question. one quick just covered is This here call. the a and hopping it night. for was earlier been I've apologize for in if ask Thanks calls few around I'll guys. Mason. Jacob Hey, on taking

growth about at at profit, expanding GeneSight higher pay or from looking XXXX, and reducing So coming we into how think from moving growth versus this of no the revenue coverage should ASP the volume year that in proportion rate? looking

expect But a is But we you volume great to ASP And job. the dropping over here in do great is expect and grow details XX% we more we with haven't and absolutely we quarters, Again, couple do on again, coverage of efficient. of stable, line. improvement more there couple maybe that's But at able the broken lot hope question. and it's about that. the we're is we'll volume bottom continue to year team to soon. talking That of But that growing there. progress to a a give out. lab be ASP incredibly updates making course DaVita we around to be the some Yes, side. really of improve a the as payers

COGS are sales tight productivity to really trying and we're Our force. more get there on the

the our conversions So customer more that sales cost Mark about. with acquisition digital and coming is talked getting down we're that inside

drops on leverage of line. more the GeneSight, lots to on no coverage clearly So, pays bottom but

across some So we're the focused that's on portfolio.

Thanks All guys. Got right. it.

Thank you.

Thank and today. question for And that it presenters your very does turn I back the for I'll closing you conclude answer to remarks. session hope much.

one Okay. our call. Thank Thanks, us for available operator. This again concludes on earnings be replay you will afternoon. for our week. website via webcast A this joining

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