- Myriad Genetics Inc MYGN has acquired Gateway Genomics LLC, a personal genomics company and developer of consumer genetic tests, including the flagship SneakPeek Early Gender DNA Test, for an upfront cash purchase price of $67.5 million.
- Gateway can earn up to an additional $32.5 million of cash payments in 2023 and 2024 if certain revenue, volume synergy, and EBITDA targets are achieved.
- SneakPeek reveals a baby's gender at six weeks into pregnancy -- the only at-home test to do so with 99% accuracy and the earliest method available.
- The acquisition strengthens Myriad Genetics' Women's Health products portfolio, expanding access to personalized genetic tests.
- Gateway projects FY22 sales of approximately $20 million.
- The core Gateway business is expected to be neutral to Myriad's earnings and operating cash flows in 2023. Gateway's business is also expected to accretive to Myriad's growth rate, earnings, and operating cash flows in 2024.
- Myriad Genetics reported Q3 sales of $156.4 million, down 2% Y/Y, missing the consensus of $170.10 million.
- The company reported an adjusted EPS loss of $(0.19), wider than $(0.02) posted a year ago and missing the consensus of $(0.06).
- The company lowered FY22 sales guidance from $670 - $700 million to $668 - $672 million (consensus of $692.18 million).
- It sees deeper EPS loss of $(0.35) - $(0.30) down from $(0.10) - $0.00 expected earlier and the consensus of $(0.06).
- Price Action: MYGN shares are down 18.10% at $16.99 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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