Please ensure Javascript is enabled for purposes of website accessibility

Myriad Genetics CEO Mark Capone Resigns

By Taylor Carmichael - Feb 7, 2020 at 1:57PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The molecular diagnostics company also delivered an earnings miss, and its stock plunged.

Myriad Genetics (MYGN -1.46%) announced on Thursday that its Chief Executive Officer, Mark Capone, was resigning. Capone served as CEO since 2015 and was with the company for 17 years. CFO Bryan Riggsbee was named interim CEO. 

That announcement was made concurrently with the release of its fiscal 2020 second-quarter report, which revealed the company missed both its revenue and earnings estimates. The stock fell 30%. 

down arrow

Image source: Getty Images

What happened?

On the conference call, Riggsbee said that the revenue miss was primarily due to the company's prenatal business. Revenues in that segment dropped 47% from its fiscal 2019 second quarter. The company also blamed issues in billing operations.   

Overall, molecular diagnostics revenues for the company dropped 11% year over year, and adjusted earnings per share fell by 40%.  

Myriad Genetics is a molecular diagnostics company that went public in 1995. It develops and markets DNA sequencing tests that assess the risks of patients developing various inherited diseases, including cancer. Its prenatal screening test seeks genetic diseases in fetuses.  

The company reported a sharp drop in prices in its industry over the last 18 months. On the conference call, Riggsbee said, "[I]f average selling prices had remained the same as they were 18 months ago, revenues in the second quarter would have been $35 million higher." He blamed "shifting preauthorization rules, inappropriate denials, new documentation requirements and fluctuating coding directions" for the revenue shortfall. 

The company also revised its revenue guidance for the fiscal year to $735 million. That's a sharp decrease that would wipe out all the revenue growth of the last four years.  


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Myriad Genetics, Inc. Stock Quote
Myriad Genetics, Inc.
$18.17 (-1.46%) $0.27

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.