Let's go ahead and get started. Good afternoon. Thanks for joining us. Welcome to the Wells Fargo Healthcare Conference. I'm Brandon Couillard. I cover life sciences tools and diagnostics space here at the firm. Thrilled to have Myriad Genetics with us at the conference this year. Joining me to my left, CEO Sam Raha, as well as newly appointed CFO, Ben Wheeler. Thank you both for being here. Thanks for having us. Maybe start with you, Ben. I mean, you took over CFO post a couple of weeks ago. Just kind of share a quick introduction on yourself. You've been at the company a little while. To what extent have you been involved in some of the strategic review processes that Sam's sort of been leading? Maybe we'll start there. Sure. Yeah, no. I'm thrilled to partner with Sam and the executive team to focus on our mission and deliver on the strategy that Sam laid out during our Q2 earnings call. I've been at Myriad going on 14 years this December. You could say that I was brought up in the specialty diagnostics space. I also bring a lot of deep experience to the role. I know the business very well as a result of spending so much time at our company. As a result, I've had an opportunity to spend a lot of time with lots of different teams at the organization, spending a lot of time with revenue cycle, the operations. I've had roles throughout the Finance, Treasury, and Accounting organizations. I'm excited to focus on executing with the executive leadership team and delivering on the strategy that Sam has shared. I've been closely aligned with Sam while he's focused on his strategic review. I was the internal point person on our recent credit facility. Based on previous roles, I've been integrated in the standard FP&A processes, you know, your budget and your forecasting cycle. Maybe the last thing I'll share is, in my previous role, one of my key responsibilities was to act as the CFO to the Chief Operating Officer. I have had the opportunity to work very closely with Sam since December of 2023 when he joined the organization as the Chief Operating Officer. Okay. Maybe, Sam, a good place to start might be the second quarter. I mean, it was an easy comp, let's say, after the first quarter. A lot of things did seem to kind of improve directionally. Can you just kind of unpack the headwinds that you maybe encountered in the first, some of the themes that you want to leave us with or that most resonated with you in kind of the second quarter? Yeah, no, I appreciate the question. You know, it's true. When we came into the year, in many ways, it was a perfect storm. Definitely a complicated time, particularly given the headwinds from the UnitedHealthcare decision, the confusion around the NCCN guidelines for prostate cancer. Just walking into the year, realizing that, you know, a number of things had changed and the financials had to be reset. That's definitely something you never want to do, but not on your first earnings call as a new CEO. Maybe to answer the question, I'd say, Brandon, I'm a frameworks guy. My simple framework for running the business is about having a well-articulated, compelling strategy, having the right team, and they're really about execution excellence. You know, what's exciting now, both on the inside, and then I think it's starting to resonate from the outside too, is that we have now a clearly articulated strategy, which is about advancing, accelerating our growth by focusing on the cancer care continuum. I know we'll talk more about that. It is very important because it gives us such clarity and conviction on the inside for any major decision we make related to people, related to funds, even focus, management time, on where we focus because we believe the opportunity is there. When we talk next about team, you know, really excited. We've just talked about Ben. Ben is my ChatGPT on the inside, deep knowledge at all things, great trust, and you know, just confidence that he has from the rest of the ELT and the board. Also added Brian Donnelly as our Chief Commercial Officer a couple of months ago. Brian, you know, had really helped grow Ancestry over the last several years to a great asset. Years ago, Brian used to be part of my leadership team at Illumina. We have a deep understanding. A number of folks that we've added because I think part of our journey as Myriad going forward is having the right people that understand the domain, at the same time can really focus on execution. Some people that, you know, we haven't really publicized, a gentleman called Lou Wellabob, who used to run a $600 million business for me at Agilent, the pathology business, has joined to lead our pharma services business. That business is already starting to make a difference for us. Hussain Khorrammehr, as our SVP of Oncology R&D, brings deep experience both scientifically in oncology, Amgen, and other places. Most recently, just a few weeks ago, we had Vishal Sikri, who was our SVP of Product, former President at NeoGenomics, Inv itae before that. I think the team is really coming together that I need to really drive the results. Finally, execution is a long way to getting to your core question. I think Q2 could be defined as a step forward in the right direction. We've got a long way to go to where we want to be and where we intended to be. In terms of specifically being able to work on the identified challenges we talked about in Q1, related, for example, to hereditary cancer of the unaffected, we saw that a little bit better and faster than we anticipated, which is great. Hereditary cancer and the oncology for those that have cancer continues to grow double-digit with strength. We reset GeneSight, the mental health business, intentionally after the challenges we had in terms of right-sizing and refocusing. That business went from very low single-digit back to 5% growth. We think that's something we can sustain. We're also excited that the significant efforts we've put in over the quarters on revenue cycle management and peer markets is an important contributor to strong ASPs. We saw really across the portfolio that we expect to go forward. I think it's a really good setup for the momentum to continue in the quarters to come. One of the other, I think, surprising things of the 2Q update was that you actually put the LRP back out there. You know, high singles, low double digits, was 12%+ before. Why even do that at this point? What were you trying to communicate by setting that target, which has been debatable at different times with Myriad over the years? To what extent are you ready to kind of unpack your assumptions by product franchise? Yeah. Hey, listen, I think, you know, as the new CEO, it's my prerogative to look deeply, right, with the team to really, you know, the business that we have, the puts and takes, challenges and the opportunities. We feel good about the rigor that we put in already into that process, though I know there is some wanting of more detail even on the earnings call, which, by the way, is coming, you know, probably closer to, you know, the January timeframe. Details will be unpacked. I can tell you that for clarity tied to our strategy, understanding that based on the product portfolio that we have, that we can grow at or above market in prenatal health and mental health, we have that conviction, we have the clarity, we have the products. In oncology, you know, we think hereditary cancer remains a very important ongoing opportunity for us to grow in the high single digits. We're seeing that growth already on the affected side, the unaffected side. We're going to drive a lot of new programs. We're excited about that. Really, as we called out these new high attractive market segments that we are going to, you know, participate in, both through our own product launches and MRD, I'm sure we'll talk a little bit more about that, but also through partnerships. This gave us the conviction. Brandon, I didn't want to wait. Listen, there's a big range, right? You know, high single digit to low double digit. I fully accept that, listen, no one believes the number anyway. Maybe that's a little extreme. We have to earn the right quarter after quarter. That's what we intend to do in more details to come of where we're going to be a little bit more precise in, you know, 2026, 2027, these numbers. To grow and profitably. Absolutely. A two-step dance that's always been challenging. On the call, you kind of talked about three main tentpoles that you have moving forward. Cancer care continuum is kind of the core area of focus. Is this just packaging and sort of window dressing externally in terms of framing where your focus is? What's actually different about the strategy and how you were going to allocate resources around that? I think it's a great question because, in a way, the story has kind of been told in different ways at different times for Myriad. Let me tell you what's going to be different. There are at least four fundamental tenets. One, we have clarity in strategy across the company, more than a PowerPoint, depth of detail. We're already using it. It's prioritized every hire that we make, every dollar that we spend. For example, tied to strategy, the first thing is resource and capital allocation. That's going to be different. I say this often, Brandon, like if you're a parent, you love all your kids the same. At least you say you do. When you're running a business, that's not always the right, the best approach. We are now taking a disciplined approach to say, for every dollar of investment, what is the return? Even if it was the same, what's the perceived value that our constituents, including investors, would say? That discipline and allocation of resources, our dollars, as well as our management focus, is one big difference. We're already seeing that on the inside. Number two, though we've talked about participating in cancer, we have not been explicit about participating in some of the most attractive high growth market segments, including, for example, in therapy selection. We're the leader in HRD, PARP inhibitor-related therapy selection. Now, we are going to get into CGP and to liquid, and we're going to do that through a partnership. MRD is another big opportunity for us. IO response monitoring could be another area we're going to participate. Attractive market segments that we traditionally haven't been in is number two. Number three is it doesn't have to be Myriad all the time. Traditionally, it's all been developed and launched. Selecting and being able to leverage strategic partnerships like the one we announced about four or five months ago with PathomIQ for bringing their AI capability together with our molecular tests in prostate cancer is another important tenet of difference. Finally, it's about execution. I think that we've been a great intention company, but we have been short on delivering consistently. The level of urgency that we now have, together with the focus on execution, that's going to make a big difference. What's left in this strategic review process, which you kind of indicated would sort of conclude later this year with some announcements, early next year? What's left for you to kind of take a look at? You know, where we are, Brandon, it's about a very excruciating level of detail of the financials and what the sensitivity analyses and so forth before you. It's fully tied to the new Myriad, as we want to set expectations and consistently meet and exceed that. It would have been very easy for me to say, here we go, here's all of it, and here are the KPIs, and here are the metrics, and here's the new LRP. We're being incredibly thoughtful to go through that rigor ourselves and really have that next level of conviction. That's it. Most of the work's been done. Maybe diving into some of the segments, starting with hereditary cancer. How do you feel about the pricing outlook there generally? Are the EMR challenges you encountered in the unaffected market in the first quarter, which we don't have to spend, like, you know, 10 minutes? There's a long process. Are those mostly behind you now? Yeah, I think so. Ben, you want to kind of have the story of this one? From an ASP standpoint, we feel really comfortable with where the portfolio stands. We saw stability in ASP in Q2. From the prenatal standpoint, we saw some strength in ASP when you look at it year- over- year and quarter- over- quarter. That was predominantly driven by extended carrier screening. ASP from a hereditary cancer standpoint grew sequentially. That was really driven from a seasonality standpoint. From a year- over- year comparison, you actually had kind of a modest headwind, but that was really a result of at a period year- over- year, you know, Q2 2025 compared to 2024. It didn't repeat in 2025. Our outlook for ASP in 2025 is that it's a stable environment, and Q2 was another proof point for that. We saw stability, and we expect that to continue throughout the duration of the year. Okay. In prenatal, you were impacted by the rollout of a new management order system, which I don't think you had previously discussed. Have you been able to quantify what that impact was in the quarter? Do you think you make it up in the third? Are those issues kind of fully behind you now? You want to start? Why don't you go ahead? Sure. Yeah. We haven't quantified the impact that it was on Q2, but the way that we have framed it is, you know, the growth trajectory for our prenatal business has been a positive growth trajectory, and we saw negative volume year- over- year in Q2. We attributed that negative trajectory as a result of the issue that we experienced with that rollout of technology. It's behind us. We identified it. It's, you know, it's a sort of foot fault, as they call it, that we got to do better on. It's fully addressed, and now it will take some time, right? Most of these customers have a number, a small number of lab partners that they work with. The testing couldn't wait. To fully gain back that volume will take some time. That's what we've guided towards. It'll take a number of quarters to do that. By the way, we feel excited about the products we have, right? We have an NIPS product that can be done at eight-week gestational age, earlier than anything else that's out there. We've seen good interest, and a bigger proportion of our NIPS testing is from that. Our expanded carrier screening test already has all the anticipated, forever anticipated ACOG genes now that are in there. We're doing early access for what we call FirstGene, a combined screen between NIPS, carrier screening. We're starting to see, you know, we're happy with how that's going. All of these things will be, you know, reasons for us to, again, get in the game, resume the growth that we were seeing above market. You want prenatal to grow above market. What do you define as market growth? From our analysis, the prenatal market growth is somewhere in the mid-single digit range. Above market would be anything above that. Okay. When do you expect those ACOG guidelines to finally hit, any, you know, prognostication, and remind us what the size of that incremental revenue opportunity, you know, could be? You know, Brandon, if I told you that you shouldn't believe me, right? Because we have all been postulating this as a market, as companies for a long time. I don't know. What I can tell you is that we're pleased that on the expanded carrier screening side, Ben was just talking about the ASP strength we've seen. We've now seen some payers in advance of ACOG start to adjust their policy to start covering the expanded carrier screening. We're starting to see some benefit from that right now. We are fully ready based on both microdeletions on the NIPS side, as well as all the genes and everything we need on expanded carrier screening to fully catch the wave. What we previously said is that could collectively, when the ACOG guidelines go through, be somewhere in the $10 million- $20 million per year range. It might not be quite that much because I think that kind of like what we saw with NIPS and average risk, it may very well be that over the years, we start to see the benefit get into our revenue base. Okay. Maybe shifting gears over to Polaris. I mean, volumes seem stable. I think the business maybe grew a little bit in terms of revenue year- over- year in the second quarter. How are you thinking about this business as we move into the back half of the year? What sort of gives you the confidence? It's been several quarters now that you don't see some delayed effect of the NCCN guidelines. What does PathomIQ sort of mean for this franchise next year? Yeah. I think you characterized it absolutely accurately, you know, compared or many had written off that we would start to see a substantial decline after the updated guidelines or being in the advanced diagnostic table or not. That's not the case. By the way, we haven't been standing still. We walked into the year with a very rigorous plan to leverage KOLs to talk to peers, our customers about the value of the Polaris test and really what the Simon Level 1 criteria means and doesn't mean. We've seen some resonance with that. We've added headcount to our sales team. We've added a new sales leader. What we found is just the announcement of the partnership with PathomIQ has immediately had a positive effect because it stemmed the tide that there's some perception as, well, Myriad be around prostate cancer. How committed are they? We absolutely are. That PathomIQ announcement has helped with that. Listen, we expect that stability to continue. Let me just be very clear. We're not happy with this. This means we've just kind of stemmed the tide. This does not look like success. Success means growing at or above market, starting to regain share. That's where we think the opportunity is with PathomIQ. PathomIQ brings an AI capability which will complement our leading molecular tests to be able to provide an even more powerful answer for a prostate prognostic at the time of biopsy. It'll allow us a little further down the line to have a test for post-surgery or post-radiation, which is a place, which is a blue ocean for us, right? That's where the competitors are. We look forward to that opportunity. It's both three things that PathomIQ relationship is doing. It's allowing us already to change the perception of our commitment to this space. Two, it is going to give us some real product that will drive growth and volume beyond what we've been doing. Three, I didn't talk about it immediately, but it was part of our calculus. It allows us to have access to the samples a lot quicker, which we need for our own Simon Level 1 work to get that evidence. It's accelerating that by about 18 months. Okay. That's really helpful. On GeneSight, what data has been submitted to UNH already? What is the nature of your conversations that you've had to the extent that they want your input? You know, really realistically, I can't really think of that many instances where a decision kind of gets reversed. Maybe I'm wrong. What do you think the odds are that they sort of take a look at the evidence package and give it another shot? All good questions. I mean, listen, Brandon, we're right on track of submitting to UnitedHealthcare different pieces of scientific evidence and other supporting materials. I think we had a press release last night about a new meta study that was done, which shows with statistical significance the improvement, you know, both in remission and over time, just the impact that using GeneSight has. We still have another, you know, publication that's on track to be submitted to them. We have, you know, I think it's more than emails going back and forth. We have a good discussion stream underway, and there's a plan. All that being said, it's a very complicated, large organization. You know, we weren't expecting the decision that they made on the policy, which wasn't, you know, just about Myriad, but clearly with the leader in the market most impacted. In our LRP and in our planning, be it for the rest of the year or even in our LRP going forward, we're not counting on this coming back. If it does, it'll be a positive development that we're absolutely not counting on at this point. Okay. Pivoting over to your MRD strategy, at a high level, how would you sort of characterize Myriad Genetics' right to win in this market? What gives you the confidence that you can be just a credible player in what is an increasingly crowded space? You just start there high level. Yeah. You know, listen, the reasons that we are excited about the MRD opportunity and the way you worded it, our right to win, you know, one, first, undeniably, we can debate how big the market is, but it is one of the largest molecular diagnostic market opportunities we've all seen. That is important because the size of the opportunity and the volume of testing that will be done. We are, for Myriad, you know, we are one of the originators of DNA-based diagnostics, and that has led to a very strong reputation for the science and the quality of our products. We have access into thousands of the most relevant healthcare systems and providers, and along with that, we, you know, we are embedded into their ordering systems. That's an important thing. Now, the other fundamental premise of why I think that we're going to be relevant is our tests, precise MRD, the performance is differentiated in terms of being able to, you know, to have a resolution power into less than 10 parts per million of what you're looking for in blood. That is particularly important to what we call low shedding tumors, such as breast, ovarian, prostate, renal, these cancers. By no coincidence, those are the cancers where we have the strongest franchise and established relationships. What we also hear, and this is not just us, through our primary and secondary research, is increasingly what, you know, these providers, oncologists want, particularly when they're trying to make a very time-sensitive call on what to do in the course of treatment, is to have the information from all the relevant tests, hereditary cancer, HRD, MRD, CGP, all these modalities in one place, ideally from, you know, one provider. If you can have it in one test report, that's even more compelling. That's our plan. Hey, we're late to the game, but both the performance, our reach, our reputation, and the technical aspect of being in the EMRs is why we believe we're still going to be able to make a meaningful franchise here. What are the next milestones to watch for there, either in terms of data? I think you talked about a MolDX express submission in the first quarter of next year. Is that still on track? Yeah. We intend to share multiple pieces of data between now and the end of the year coming up. Yes, MolDx submission is in the Q1, early Q2 timeframe. Very importantly, independent of MolDx, we don't want to wait any longer than we have to to actually get our MRD test into the market to be used for clinical testing. Our plan is to launch the test through early access, first half of 2026, being very deliberate. Ben and I do this together to manage the volume with the intention of really getting it out there, getting KOLs to buy in, get real-world evidence while managing the bleed, if you will, before we get MolDx, which usually takes, you know, 9 months- 12 months, which means we really likely wouldn't get reimbursement till the end of the year, early next year. Got it. Ben, I know it wasn't really your guide, but if we look at the guidance for the back half of the year, it basically implies that second half revenues are down from 2Q levels, despite, I think, some directionally positive operational progress that Dan was talking about. What should we be thinking about as far as volume ASP trends and, I guess, degree of conservatism that's maybe embedded in the second half outlook? Sure. We've talked a little bit about ASP already. Typically, Q3 is a seasonally weaker quarter relative to Q2, and that's what we would expect. That's what's baked into that guide. It's also important to remember that in Q3 of 2024, there was about $9 million of an out-of-period revenue benefit that is not expected to repeat in 2025. We talked on the Q2 earnings call that the expectation relative to volume recovery from the challenges with that ordering platform would be gradual as we work through Q3 and Q4. That is reflected in that guide, the gradual recovery in prenatal volume, and also continued gradual progress in EMR as it relates to the unaffected hereditary cancer volume. All of that is reflected in that updated guide. Ben, I was going to ask you this question, but you've been at Myriad a long time, so it might be hard to sort of take the head off. I'd be curious to get your opinion too. I mean, if you just wrote down on a piece of paper, step back, look at the P&L, right? The business is doing $800 million revenue. You're generating $575 million of gross profit dollars and zero operating profit dollars, right? Like, why do you need $450 million of G&A to support an $800 million revenue base? On one hand, is there opportunities for more efficiencies? Does that have to grow for you to do high singles, low doubles on the top line? Yeah. When we look at our P&L, where we expect to get leverage going forward from a growth standpoint is out of the OpEx, right? Sometimes when we talk about the profile, we'll talk about gross margin and what we expect to see in gross margins. We expect to maintain industry-leading gross margin, but the real leverage in the model comes out of the infrastructure that has been built to support the business. When you look broadly across our peer set, it takes a lot of money to support the business that we operate in because of the complicated business. We do not expect to dump more money in OpEx to support the growth that we are projecting and that we anticipate being able to produce. One thing I'd add to that is our third newly established strategic pillar. It's about driving sustained profitable growth. One of the sub-bullets, Brandon, that I called out on the last earnings call is ensuring, and it's the training that I have from Agilent and from yours, that you grow revenue faster than OpEx. It's just a fundamental. It's just good business. That's what you're going to see. I think we have an opportunity to disproportionately continue to get to where our OpEx really should be as a percentage. That's what you're getting to, by being very deliberate about where we spend our money and making the right but hard choices, and refocusing in on the cancer care continuum growth. You've cleaned up the balance sheet, liquidity position with the recent sort of OrbiMed financing. Free cash flow in the first half was not great, coupled, you know, maybe one-timers in there. Do you expect to be operating cash flow positive in the back half and kind of going forward? Yeah. Typically, H1 is a heavier cash usage quarter just based on the nature of the business. Yeah, we do expect to be operating cash flow positive in the back half of the year. We'll talk more about 2026 as we get closer to that, either in January or Q4 earnings call. We absolutely do expect to be operating cash flow positive in the back half of the year. Okay. I mean, I guess lastly, Sam, I mean, you look across the business. I mean, the stock's trading less than one times revenue. You've got a new team on the field. What do you think investors are most underappreciating about Myriad? The balance sheet's sort of been addressed near-term. Maybe there's a near-term dynamic and a longer term, you know, focus. What would you point people to? Yeah. I think I've spoken to elements of this, but let me summarize. One, we are in attractive markets that are growing. We have reach and reputation and credibility with the customers, high NPS scores. These things are all good. Also, some of the things that, you know, perhaps had been considered to be disastrous, including the UnitedHealthcare policy decision, the NCCN update on guidelines, we've been able to weather that storm. It shows the strength of the franchise, of the business, that, you know, we're still on an adjusted EBITDA basis, still going to be, you know, profitable on that basis. Really, we've shown the stability of the business. Now it's the opportunity with the new products. The things to look for are the launch of these new products. I even talk about next quarter, we're launching for the first time in a long time, an updated, expanded MyRisk panel for our core hereditary cancer franchise. That's going to be a good thing. MRD coming up in the first half is going to be a big thing. These new products, along with the new team and a different level of rigor, urgency, and discipline and execution, I think is what, you know, perhaps isn't being valued yet. I also appreciate we are here to manage expectations and do what we say we're going to do consistently, quarter after quarter. We intend to deliver on the opportunity. Super. I look forward to seeing that. Wish you the best of luck to the back half of the year. Thank you both for being here. Folks, have a great day. Yeah, thank you, Brandon. Thank you. Thank you, Brandon.