SOURCE: Myriad Genetics

February 06, 2007 06:30 ET

Myriad Genetics Reports Results for Second Quarter of Fiscal 2007

Molecular Diagnostics Revenues Up 46%, Gross Profits Up 56%

SALT LAKE CITY, UT -- (MARKET WIRE) -- February 6, 2007 -- Myriad Genetics, Inc. (NASDAQ: MYGN) today reported financial results for the second quarter of fiscal 2007 and the six months ended December 31, 2006.

For the second fiscal quarter of 2007, molecular diagnostics revenues increased by 46% to $34.2 million, from $23.4 million in the second quarter of fiscal 2006. Compared with the first quarter of fiscal 2007, molecular diagnostics revenues experienced strong, double-digit growth of 11%.

For the first six months of fiscal 2007, molecular diagnostics revenues were $65.0 million, an increase of 45% from the $44.9 million of the same period last year. This increase in molecular diagnostics revenues reflects strong customer demand for Myriad's molecular diagnostics products due in part, we believe, to the demonstrated clinical utility of the tests and the clinical value to patients themselves of using Myriad's BRACAnalysis®, COLARIS®, and MELARIS® molecular diagnostics products.

Gross profit margins from sales of molecular diagnostics products reached a record 78% in the second quarter, an increase of five percentage points over the 73% from the same period last year, and four points higher than the first quarter of fiscal 2007. Improved gross profit margins primarily resulted from the introduction of new, more efficient operating systems. Gross profits from the molecular diagnostics business were $26.6 million for the second quarter of fiscal 2007, a 56% increase from the same period last year and a 17% increase from the first quarter of fiscal 2007.

Research and development expense was $24.8 million for the quarter, compared with $19.0 million for research and development in the same quarter of the prior year. This 30% increase in research and development expense includes the ongoing investment to continue moving Flurizan™ and Azixa™ toward regulatory approval, continue clinical development of the Company's MPC-0920 and MPC-2130 candidate drugs and to advance promising late-stage preclinical drug compounds toward the submission of an IND.

As of December 31, 2006, Myriad had approximately $204 million in cash, cash equivalents and marketable investment securities. The Company has no debt and no convertible securities.

"We are pleased to once again report excellent growth in our molecular diagnostics business and continued progress in advancing our drug candidates through the regulatory process," commented Peter Meldrum, President and CEO of Myriad Genetics, Inc. "As we have seen in previous years, our second quarter was particularly strong, with record revenues and strong profit margins. Additionally, I am pleased to report that strong sample flow has continued into our third fiscal quarter."

The net loss per share for the second quarter of fiscal 2007 was $0.22, unchanged from the $0.22 per share from the same period in fiscal 2006. Net loss for the second quarter of fiscal 2007 was $8.8 million, compared with $8.0 million for the same quarter of fiscal 2006. This nominal increase was realized by carefully controlling expenses despite the initiation of a European Phase 3 human clinical trial of Flurizan (tarenflurbil) in patients with mild Alzheimer's disease and a 30% increase in research and development expenditures over the same quarter last year.

Update on Flurizan™

After recent discussions with the United States Food and Drug Administration and further analysis of the Company's Phase 2 data, the Company has determined to continue its U.S. Phase 3 trial of Flurizan in the United States, through to its full 18-month term, without conducting an interim analysis of the data at 12 months.

Additionally, the governing bodies that regulate generic drug names have assigned to Flurizan a generic name with a new word stem that identifies it as the first member of a new class of compounds known as Selective Amyloid Lowering Agents, or SALAs. Flurizan is the first to receive the new word stem, "--flurbil", and will now be known generically as "tarenflurbil." Both the United States Adopted Names Council and the International Nonproprietary Names organization have assigned this new generic name to Flurizan, providing a consistent compound-specific name across all markets.

Conference Call and Audio Web Cast

Myriad management will host a conference call today at 10:00 am Eastern time to discuss these results and other recent Company events. The dial-in number for the conference call will be (888) 589-2820, or (706) 634-2173. Callers will be required to give the conference identification number, 6647309. A replay of the conference call will be available for one week following the call at (800) 642-1687 or (706) 645-9291. The call will also be available audiocast over the internet through a link on Myriad's home page at

Myriad Genetics, Inc. is a biopharmaceutical company focused on the development and marketing of novel healthcare products. The Company develops and markets molecular diagnostics products, and is developing and intends to market therapeutic products in the fields of Alzheimer's disease, cancer and viral diseases. Myriad's news and other information are available on the Company's Web site at

Azixa™, BRACAnalysis®, COLARIS®, Flurizan™ and Melaris® are trademarks of Myriad Genetics, Inc. in the United States and other countries.

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our belief that significant increases in the Company's molecular diagnostics revenue reflect strong customer demand for our molecular diagnostics products due in part to the demonstrated clinical utility of the tests and the exceptional value to patients, improved gross profit margins from the introduction of new, more efficient operating systems, continued growth in molecular diagnostic product revenues and advances in moving our drug candidates towards the market, the continued strong sample flow into our third fiscal quarter, management's beliefs concerning the expenditures necessary to advance the Company's therapeutic product candidates through regulatory approvals, and management's belief in the utility of continuing the Phase 3 trial of Flurizan™ through the full 18-month term. These forward-looking statements are based on management's current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include, but are not limited to, our inability to further identify, develop and achieve commercial success for new products and technologies; our ability to discover drugs that are safer and more efficacious than our competitors; our ability to develop molecular diagnostic products that help assess which patients are subject to greater risk of developing diseases and who would therefore benefit from new preventive therapies; the possibility of delays in the research and development necessary to select drug development candidates and delays in clinical trials; the risk that clinical trials may not result in marketable products; the risk that we may be unable to successfully finance and secure regulatory approval of and market our drug candidates, or that clinical trials will be completed on the timelines we have estimated; uncertainties about our ability to obtain new corporate collaborations and acquire new technologies on satisfactory terms, if at all; the development of competing products and services; our ability to protect our proprietary technologies; patent-infringement claims; risks of new, changing and competitive technologies and regulations in the United States and internationally; and other factors discussed under the heading "Risk Factors" contained in Item 1A in our Annual Report on Form 10-K for the year ended June 30, 2006, which has been filed with the Securities and Exchange Commission, as well as any updates to those risk factors filed from time to time in our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. All information in this press release is as of February 6, 2007, and Myriad undertakes no duty to update this information unless required by law.


(in thousands, except per share
 amounts)                        Three Months Ended     Six Months Ended
                                --------------------  --------------------
                                Dec. 31,   Dec. 31,   Dec. 31,   Dec. 31,
                                  2006       2005       2006       2005
                                ---------  ---------  ---------  ---------

  Molecular diagnostic revenue  $  34,175  $  23,392  $  65,026  $  44,921
  Research revenue                  2,960      3,938      5,652  $   7,524
                                ---------  ---------  ---------  ---------
    Total revenues                 37,135     27,330     70,678     52,445


  Molecular diagnostic cost of
   revenue                          7,529      6,272     15,634     12,075
  Research and development
   expense                         24,764     19,030     51,116     37,495
  Selling, general and
   administrative expense          16,211     11,628     30,297     22,528
                                ---------  ---------  ---------  ---------
    Total costs and expenses       48,504     36,930     97,047     72,098

                                ---------  ---------  ---------  ---------
    Operating loss                (11,369)    (9,600)   (26,369)   (19,653)

Other income (expense):
  Interest income                   2,573      1,649      5,175      2,460
  Other                                 -         (1)       (27)        (1)
                                ---------  ---------  ---------  ---------
                                    2,573      1,648      5,148      2,459

                                ---------  ---------  ---------  ---------
Net loss                        ($  8,796) ($  7,952) ($ 21,221) ($ 17,194)
                                =========  =========  =========  =========

Basic and diluted loss per
 share                          ($   0.22) ($   0.22) ($   0.53) ($   0.52)
                                =========  =========  =========  =========

Basic and diluted weighted
  average shares outstanding       39,808     35,547     39,754     33,217
                                =========  =========  =========  =========

            Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)                                  Dec. 31, 2006 Jun. 30, 2006
                                                ------------- -------------
Cash, cash equivalents, and marketable
 investment securities                          $     203,511 $     227,744
Trade receivables, net                                 24,006        20,820
Other receivables                                       2,920         1,397
Prepaid expenses                                        3,932         2,326
Equipment and leasehold improvements, net              23,761        19,829
Other assets                                            4,192         4,487
                                                ------------- -------------
  Total assets                                  $     262,322 $     276,603

Accounts payable and accrued liabilities        $      26,038 $      26,705
Deferred revenue                                          434           117
Stockholders' equity                                  235,850       249,781
                                                ------------- -------------
  Total liabilities and stockholders' equity    $     262,322 $     276,603

Contact Information

  • Contact:
    William A. Hockett
    EVP, Corporate Communications
    (801) 584-3600
    email: Email Contact