Myriad Genetics, Inc., (NASDAQ: MYGN), a leader in genetic testing and precision medicine, today announced that it has acquired Gateway Genomics, LLC, a personal genomics company and developer of consumer genetic tests including the No. 1 selling SneakPeek® Early Gender DNA Test. 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’ portfolio of Women’s Health products, expanding access to personalized genetic tests during the reproductive stage of a women’s life and beyond. With SneakPeek, Myriad now serves women earlier in their pregnancy, providing data-driven genetic insights through their lifetime with the Prequel® non-invasive prenatal screen, Foresight® carrier screen, and MyRisk™ Hereditary Cancer Test with RiskScore® for all ancestries.
Approximately 3.6 million babies are born in the United States every year*, and SneakPeek attracts over 4 million annual visitors to its website, capturing a large percentage of pregnant families who could benefit from a range of prenatal care options. Through expanded online engagement, consumers who use SneakPeek also can learn the benefits of other forms of genetic testing offered by Myriad Genetics.
Over the last three years, SneakPeek has grown at a compound annual rate exceeding 20%. SneakPeek is offered directly to consumers at sneakpeektest.com, online channel partners, and more than 1,850 clinicians in the U.S. and select international markets. The test has strong brand loyalty and a 76-point Net Promoter Score. It is the best-selling prenatal DNA test on Amazon® and the top searched gender test on Google® with more than 9,000 reviews and a 4.5 star average rating.
The test kit includes a SneakPeek Snap® device that provides an automated way for moms to easily collect blood samples at home. The user places the Snap device on their upper arm, presses the button, and the sample is collected in 1-4 minutes. Samples are mailed to Gateway and results may be received as early as the same day via email.
“Gateway Genomics and the SneakPeek test reinforce our mission to advance health and well-being for all with innovative science-based tests that bring relevant genetic information to consumers and clinicians in a way that is accurate, affordable and easy to use,” said Paul J. Diaz, president and CEO, Myriad Genetics. “As a trusted lab source for prenatal and hereditary cancer testing, Myriad can now offer a comprehensive suite of women’s health testing solutions before, during, and after pregnancy. All of us at Myriad Genetics are excited to welcome Chris Jacob, Gateway’s CEO, and the entire Gateway management team and staff to our Women’s Health operating division.”
“With more than 750,000 SneakPeek Early Gender DNA Tests sold to date, Gateway Genomics has advanced our shared mission to expand access to affordable genetic testing and improve family planning outcomes,” added Chris Jacob, CEO, Gateway Genomics. “We are thrilled to join Myriad to benefit from their experience and infrastructure, accelerating the commercial expansion of our tests. Together, we will empower and support every woman through her pregnancy journey with advanced prenatal screening to help their family thrive from the start.”
Myriad Genetics acquired Gateway Genomics for an upfront cash purchase price of $67.5 million, subject to customary working capital adjustments and an escrow of $7.5 million. Gateway has the opportunity to 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. Projected revenues for Gateway in calendar year 2022 are approximately $20 million. The core Gateway business is expected to grow over 20% compounded over the next three to five years, excluding synergies, and is expected to be neutral to Myriad’s earnings and operating cash flows in 2023. Gateway’s business also is expected to be accretive to Myriad’s growth rate, earnings and operating cash flows in 2024. Guggenheim Securities, LLC acted as financial advisor to Myriad Genetics. Raymond James acted as financial advisor to Gateway Genomics.