Myriad Genetics, Inc.

Greetings and welcome to the Myriad Genetics second 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. At that time, if you have a question, please press the 1 followed by the 4 on your telephone. If at any time during the conference you need to reach an operator, please press star 0. As a reminder, this conference is being recorded today, Thursday, August 4th, 2022. I would now like to turn the conference over to Foster Harris. Please go ahead.

Thank you. Good afternoon, and welcome to the Myriad Genetics second quarter 2022 earnings call. On the call, we will review the financial results we released today, and afterwards, we'll host a Q&A session. Our quarterly earnings release was issued this morning on Form 8K and can be found on our website at investor.myriad.com. I am Foster Harris, Senior Associate of Investor Relations, On the call today are Paul Diaz, our President and Chief Executive Officer, Brian Rigby, our Chief Financial Officer, and Nicole Lambert, our Chief Operating Officer. This call can be heard live via webcast at investor.meria.com, and a recording will be archived in the investor section of our website along with this live presentation. Please note that some of the information presented 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 management's current expectations, and the actual events or results may differ materially and adversely from these expectations for a variety of reasons. We refer you to the documents the company files from time to time with the Securities and Exchange Commission, 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 from those contained in our forward-looking statements. With that, I will now turn the call over to Paul.

Thank you, Foster. Good afternoon, everyone, and thank you for joining us. On today's call, we will discuss our Q2 results, along with highlights from the quarter and updates on our strategic transformation and growth plan. First, I want to thank all of our teammates for their hard work and dedication this quarter to advance our mission and our vision to make genetic testing and precision medicine more accessible to help people take more control of their health and enable providers to better detect, treat, and prevent disease. I also want to thank our healthcare provider partners and their patients for their continued trust and confidence in us And as 22 remains an exciting year for Mira Genetics, we continue to build a foundation for accelerated growth and advancing our mission of improving health and well-being for all. We are pleased with the progress we made in the second quarter of 2022. After excluding divested businesses, quarterly revenues of $179.3 million increased 7% year-over-year and 9% for the six months ended June 30, 2022. in line with our long-term revenue guidance. Diagnostic test volumes of 260,000 increased 9% year over year, demonstrating strong continued growth in our core business. Average revenue per test in the quarter decreased 2% year over year, excluding divested businesses, primarily due to shifts in our product mix as compared to the second quarter of last year. Despite ongoing COVID disruptions, and significant inflationary pressure in the quarter, our team did a great job from an operations standpoint. Genesight, Polaris, and My Choice EDX saw their highest quarterly volumes ever this quarter. And our hereditary cancer business is beginning to stabilize. And our prenatal business saw healthy growth in the quarter with potential opportunities in the near future to increase market share. Adjusted gross margins improved 30 basis points from last year to 72.4%, and our adjusted earnings per share of 4 cents decreased 8% year over year, primarily due to income from now divested businesses such as Vectra and RBM in the second quarter of 2021. We ended this quarter with $283.6 million in cash, cash equivalents and investments, and no long-term debt. positioning us to invest in the future and the strategic opportunities we see in the market. Myriad remains a trusted, differentiated partner with specialized expertise underpinned by three strategic priorities. First, we continue to invest in innovation to develop best-in-class products, improve the quality of our services and customer experience to reach more patients of all backgrounds. Second, we are building new enterprise capabilities to improve engagement, accelerate growth, and leverage our size and scale to address new market opportunities, including M&A. Third, we are focused on disciplined execution as we work to deliver on a key set of initiatives to fulfill our mission and drive long-term growth, profitability, and free cash flow. We continue to make progress on each of these priorities and are excited about the opportunities they will create in 2023 and beyond. With that, I'd like to turn things over to Nicole Lambert, our Chief Operating Officer, to discuss Q2 operating results and the new innovations in more detail.