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Myriad Genetics Reports Results for Second Quarter of Fiscal 2008
Molecular Diagnostics Revenues Increase 55%, Gross Profits Up 70%SALT LAKE CITY, UT, Feb 05, 2008 (MARKET WIRE via COMTEX News Network) -- Myriad Genetics, Inc. (NASDAQ: MYGN) today reported financial
results for the second quarter of fiscal 2008 and the six months
ended December 31, 2007.
For the second quarter of fiscal 2008, molecular diagnostics revenue
increased by 55%, to $53.1 million, from $34.2 million in the second
quarter of fiscal 2007. Molecular diagnostics revenues grew from
first quarter to second quarter of fiscal 2008 by 15%.
For the first six months of fiscal 2008, molecular diagnostics
revenue was $99.2 million, an increase of 52% from the $65.0 million
in the same period last year. This increase in molecular diagnostics
revenue reflects strong customer demand for Myriad's molecular
diagnostics products, which we believe is due in part to the
demonstrated clinical benefit to patients and the physicians using
Myriad's BRACAnalysis(R), COLARIS(R), COLARIS AP(R), MELARIS(R) and
TheraGuide 5-FU(TM). In addition, our Direct-to-Consumer Awareness
Campaign for BRACAnalysis in the northeastern United States and the
expansion of our women's health sales force have begun to have a
significant impact on sales.
"Our second quarter of fiscal 2008 represented a truly outstanding
performance by the company and its 900 talented employees," commented
Peter Meldrum, President and CEO of Myriad Genetics, Inc. "Once
again, our molecular diagnostics business achieved record revenues
and gross profit margins, and as a result, recorded a net operating
profit of over $20 million."
Total revenues for the second quarter of fiscal 2008 were $56.7
million, a 53% increase from $37.1 in the second quarter of fiscal
2007. Total revenues are comprised of molecular diagnostic revenue
plus research and other revenue. Research and other revenue increased
to $3.6 million in the second quarter of fiscal 2008, from $3.0
million in the second quarter of fiscal 2007, an increase of 23%. The
increase in research revenue was primarily due to an increase in
revenue from a new collaborative project, however, in general the
Company continues to focus its research efforts on internal programs
to develop molecular diagnostic and therapeutic products and
de-emphasize external research collaborations.
Gross profit margins from sales of molecular diagnostics products
reached a record 86% in the second quarter, a 10% improvement over
the 78% from the same period last year. Improved gross profit margins
primarily resulted from the introduction of new technologies and more
efficient operating systems. Gross profits from the molecular
diagnostics business were $45.4 million for the second quarter of
fiscal 2008, a 70% increase from the same period last year.
Research and development expense was $27.3 million for the quarter,
compared with $24.8 million for research and development in the same
quarter of the prior year. This 10% increase in research and
development expense includes costs associated with the 23% growth in
research revenues, the ongoing investment in the Company's five
clinical therapeutic programs and continued development of the
Company's preclinical drug compounds as they move toward the
initiation of human clinical trials.
Selling, general and administrative expense for the second quarter of
fiscal 2008 was $30.5 million, compared with $16.2 million from the
second quarter of fiscal 2007. This increase was primarily due to
sales and marketing expenses to support the Company's 53% growth in
revenues, investment in the Direct-to-Consumer Awareness Campaign and
the addition of sales representatives. We anticipate that these
investments will benefit future molecular diagnostic revenues.
The net loss for the second quarter of fiscal 2008 was $5.1 million,
compared with $8.8 million for the same quarter of fiscal 2007. This
decrease was primarily due to the 55% increase in molecular
diagnostic revenue. The net loss per share for the second quarter of
fiscal 2008 was $0.11, a 50% decrease in loss per share from $0.22 in
the same period in fiscal 2007.
As of December 31, 2007, the Company had approximately $303 million
in cash, cash equivalents and marketable investment securities. The
Company's marketable investment securities do not include any
collateralized mortgage obligations or mortgage-backed securities.
The Company has no debt and no convertible securities.
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, 32258334. 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 www.myriad.com.
Myriad Genetics, Inc. is a biopharmaceutical company focused on the
development and marketing of 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
www.myriad.com.
BRACAnalysis(R), COLARIS(R), COLARIS AP(TM), Melaris(R) and
TheraGuide 5-FU(TM) 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 to patients, improved
gross profit margins from the introduction of new, more efficient
operating systems, continued growth in molecular diagnostic product
revenues and potential future growth due to the Company's increased
marketing efforts and sales forces and the continued development of
the Company's clinical and preclinical programs. 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 Six Months Ended
-------------------- --------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2007 2006 2007 2006
--------- --------- --------- ---------
Revenues:
Molecular diagnostic revenue $ 53,097 $ 34,175 $ 99,153 $ 65,026
Research and other revenue 3,645 2,960 5,855 5,652
--------- --------- --------- ---------
Total revenues 56,742 37,135 105,008 70,678
Costs and expenses:
Molecular diagnostic cost of
revenue 7,690 7,529 15,026 15,634
Research and development
expense 27,306 24,765 53,328 51,010
Selling, general and
administrative expense 30,482 16,210 56,970 30,403
--------- --------- --------- ---------
Total costs and expenses 65,478 48,504 125,324 97,047
--------- --------- --------- ---------
Operating loss (8,736) (11,369) (20,316) (26,369)
Other income (expense):
Interest income 3,667 2,573 7,523 5,175
Other 2 - (272) (27)
--------- --------- --------- ---------
3,669 2,573 7,251 5,148
--------- --------- --------- ---------
Net loss $ (5,067) $ (8,796) $ (13,065) $ (21,221)
========= ========= ========= =========
Basic and diluted loss per
share $ (0.11) $ (0.22) $ (0.30) $ (0.53)
========= ========= ========= =========
Basic and diluted weighted
average shares outstanding 44,094 39,808 43,831 39,754
========= ========= ========= =========
Condensed Consolidated Balance Sheets (Unaudited)
Dec. 31, Jun. 30,
(In thousands) 2007 2007
--------- ---------
Cash, cash equivalents, and marketable investment
securities $ 303,453 $ 308,312
Trade receivables, net 38,468 31,103
Other receivables 2,600 1,348
Prepaid expenses 7,283 2,499
Equipment and leasehold improvements, net 28,812 24,888
Other assets 3,742 3,917
--------- ---------
Total assets $ 384,358 $ 372,067
Accounts payable and accrued liabilities $ 34,557 $ 31,321
Deferred revenue 333 383
Stockholders' equity 349,468 340,363
--------- ---------
Total liabilities and stockholders' equity $ 384,358 $ 372,067
Contact:
William A. Hockett
Exec. VP, Corporate Communications
(801) 584-3600
Email Contact
SOURCE: Myriad Genetics
http://www2.marketwire.com/mw/emailprcntct?id=2EA262FEE133092E
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