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Myriad Genetics, Inc. Reports Results for First Quarter of Fiscal 2008
49% Product Revenue Growth and 36% Lower Loss Highlight Quarter
Salt Lake City, UT, Nov 01, 2007—Myriad Genetics, Inc. (NASDAQ: MYGN) today reported financial
results for the first quarter of fiscal 2008. For the three-month
period ended September 30, 2007, molecular diagnostic revenue
increased to $46.1 million from $30.9 million in the same three
months in 2006, an increase of 49%. The majority of this growth
resulted from increased customer demand and accelerated market
penetration, and included an encouraging level of initial sales of
the Company's newest product, TheraGuide 5-FU™.
Total revenues for the first quarter of fiscal 2008 were $48.3
million, up 44% from $33.5 million in the same quarter of the prior
year. Research revenues were $2.2 million for the first quarter of
fiscal 2008, compared with $2.7 million for first quarter of fiscal
2007. Research and development expenses for the three months ended
September 30, 2007 were $26.0 million, compared with $26.2 million
for the same three-month period in the prior year.
"Our first quarter of fiscal 2008 was excellent, as we once again
achieved record product revenues," said Peter Meldrum, President and
Chief Executive Officer of Myriad Genetics, Inc. "These results are
gratifying, because it means that more men and women are learning
about their risks of developing future cancer so that they can take
action to prevent or delay the onset of this terrible disease."
Selling, general and administrative expenses for the first quarter of
fiscal 2008 were $26.5 million, compared with $14.2 million for the
same quarter of the prior year. This increase was primarily
attributable to costs associated with the 49% growth in molecular
diagnostic revenues, launch of the TheraGuide 5-FU product,
initiation of our direct-to-consumer marketing campaign, expansion of
our molecular diagnostic salesforce and commercial planning
associated with future pharmaceutical products. The additional sales
representatives are concentrating their efforts on women's primary
healthcare in an effort to reach women who have not already been
diagnosed with the disease, but who are at potentially high risk of
cancer due to their family history.
The net loss for the first quarter of fiscal 2008 was $8.0 million, a
36% decrease in loss from $12.4 million in the same quarter in fiscal
2007. On a per share basis, the loss for the quarter ended September
30, 2007 was $0.18, a 42% decrease from $0.31 in the first quarter
for fiscal 2006. The average number of shares outstanding in the
first quarter of fiscal 2008 increased to 43.6 million, from 39.7
million in the first quarter of 2007.
As of September 30, 2007, management believes that the Company
remains in strong financial condition, with approximately $299
million in cash, cash equivalents and marketable investment
securities. The Company has no debt or convertible securities.
Drug Development Update
Myriad is pleased to report that its U.S. Phase 3 trial of Flurizan
in Alzheimer's disease is proceeding on schedule and that the 18-month
term of study will conclude as planned at the end of March 2008. The
Company anticipates that it will report the top-line results of this
study by the end of June 2008.
Additionally, Myriad plans to submit an Investigational New Drug
application to the FDA, by the end of December 2007, for Vivecon™
for the treatment of HIV-infected individuals. Vivecon is Myriad's
novel viral maturation inhibitor that has been shown to be effective
against drug resistant strains of HIV and to exhibit a favorable
safety profile in preclinical toxicology studies.
Management Change
Finally, Jay Moyes, the Company's CFO, has decided to retire to
pursue his passion -- race car driving.
"I have had the pleasure of knowing Jay for over 20 years and he's
been my CFO at Myriad for over 14 years," said Peter Meldrum,
President and Chief Executive Officer of Myriad Genetics, Inc.
"Through the years, I have developed a great admiration for Jay's
financial acumen combined with his uncanny common sense and good
judgment. But most of all, he's a man of great integrity and a loyal
friend."
The Company admonishes Jay to drive safely. The entire staff at
Myriad thanks Jay for the truly exceptional service that he has
provided to the Company over his tenure and is appreciative of all
that he has done for Myriad.
The Company is pleased to report that Jim Evans, Vice President of
Finance for Myriad Genetics, Inc., has been appointed to replace Jay
as CFO. Jim has been with Myriad for 12 years, and has worked closely
with Jay on the Company's important financial projects. Jim is a CPA,
a former auditor at KPMG, and brings 20 years of experience in
finance to the CFO position. The Company is excited to welcome Jim to
his new role at Myriad.
Conference Call and Webcast
A conference call with Company management will be held today at 10:00
a.m. Eastern Standard Time, with investors and media to discuss these
results and recent events at the Company. Between 9:45 a.m. and 10:00
a.m., the dial-in number for domestic callers is (888) 589-2820.
International callers may dial (706) 634-2173. All callers will need
to reference conference ID number 21783581. An archived replay of the
call will be available for 7 days by dialing (800) 642-1687 or (706)
645-9291, and entering the conference ID number. The conference call
will also be audiocast over the Web and can be accessed through:
www.myriad.com.
Myriad Genetics, Inc. is a biotechnology company focused on the
development and marketing of novel therapeutic and molecular
diagnostic products. Myriad's news and other information are
available on the Company's Web site at www.myriad.com.
Flurizan, Azixa, Vivecon and TheraGuide 5-FU 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 increased demand for our molecular
diagnostic products and an encouraging level of sales of TheraGuide
5-FU, the expansion of our sales force and focus on women's primary
healthcare, our belief that the Company remains in strong financial
condition, the expected conclusion of the U.S. Phase 3 trial of
Flurizan and the report of top-line results, and the planned
submission of an IND to the FDA for Vivecon. These forward looking
statements are based on management's current expectations and are
subject to a number of risks and uncertainties that could cause
actual results to differ materially and adversely from those set
forth in or implied by forward-looking statements. These risks and
uncertainties include, but are not limited to: the risk that we may
be unable to further identify, develop and achieve commercial success
for new products and technologies; the risk that we may be unable to
discover drugs that are safer and more efficacious than our
competitors; the risk that sales of our existing molecular diagnostic
products may decline or not continue to increase at historical rates;
the risk that we may be unable to develop additional 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 risk that we may be unable to
develop or market additional personalized medicine products that may
help identify appropriate drug selection and dose; 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 not 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; the risk of
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, 2007, 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 the date of the release, and Myriad undertakes no
duty to update this information unless required by law.
MYRIAD GENETICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except per share amounts) Three Months Ended
----------------------------
Sep. 30, 2007 Sep. 30, 2006
------------- -------------
Revenues:
Molecular diagnostic revenue $ 46,056 $ 30,851
Research revenue 2,210 2,692
------------- -------------
Total revenues 48,266 33,543
Costs and expenses:
Molecular diagnostic cost of revenue 7,335 8,105
Research and development expense 26,025 26,245
Selling, general and administrative expense 26,488 14,193
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Total costs and expenses 59,848 48,543
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Operating loss (11,582) (15,000)
Other income (expense):
Interest income 3,857 2,602
Other (274) (27)
------------- -------------
3,583 2,575
------------- -------------
Net loss $ (7,999) $ (12,425)
============= =============
Basic and diluted loss per share $ (0.18) $ (0.31)
============= =============
Basic and diluted weighted average shares
outstanding 43,568 39,700
============= =============
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands) Sep. 30, 2007 Jun. 30, 2007
-------------- --------------
Cash, cash equivalents, and marketable
investment securities $ 299,290 $ 308,312
Trade receivables, net 33,488 31,103
Other receivables 2,559 1,348
Prepaid expenses 8,288 2,499
Equipment and leasehold improvements, net 25,966 24,888
Other assets 3,779 3,917
-------------- --------------
Total assets $ 373,370 $ 372,067
Accounts payable and accrued liabilities $ 31,613 $ 31,321
Deferred revenue 9 383
Stockholders' equity 341,748 340,363
-------------- --------------
Total liabilities and stockholders' equity $ 373,370 $ 372,067
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