Company: MYGN
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000899923-25-000019
Chunk: 123

Company: MYRIAD GENETICS INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 123
---
 compared to the prior year due primarily to an 11% increase in the average revenue per test, partially due to change in estimated revenue per test related to prior periods, and to a 10% increase in testing volume. We expect that Pharmacogenomics revenues in 2025 and thereafter will be negatively impacted by UnitedHealthcare's recent change in GeneSight test coverage under its commercial and individual exchange plans and certain managed Medicaid benefit plans. Prenatal revenues increased $25.8 million due primarily to a 10% increase in the average revenue per test and a 7% increase in testing volume. Tumor Profiling revenues decreased $9.8 million, primarily driven by declines in volume from MyChoice CDx studies in the current year compared to the prior year period.

Cost of Sales

Years ended December 31,(in millions)20242023Change% ChangeCost of revenue$252.2 $236.2 $16.07 %Cost of revenue as a % of revenue30.1 %31.4 %

Cost of revenue for the year ended December 31, 2024 increased $16.0 million compared to the prior year due primarily to an increase in testing volumes in Pharmacogenomics, Prenatal and Hereditary Cancer. 

66

Table of Contents

Research and Development Expense

Years ended December 31,(in millions)20242023Change% ChangeResearch and development expense$113.4 $88.7 $24.7 28 %Research and development expense as a % of total revenue13.5 %11.8 %

Research and development expense for the year ended December 31, 2024 increased by $24.7 million compared to the prior year primarily due to additional investments in new products and features including expanded screening for our existing Prenatal products and advancement in the development of our MRD test. We incurred approximately $11.2 million of additional compensation costs in 2024 than compared to the prior year due to an increase in the average compensation expense per employee and an $8.5 million increase in laboratory expenses. 

 Sales and Marketing Expense

Years ended December 31,(in millions)20242023Change% ChangeSales and marketing expense$284.1 $289.2 $(5.1)(2)%Sales and marketing expense as a % of total revenue33.9 %38.4 %

Sales and marketing expense decreased $5.1 million for the year ended December 31,