Myriad Genetics, Inc. Reports Results for First Quarter of Fiscal 2005
- Predictive Medicine Revenues Up 79% Over First Quarter Last Year -
SALT LAKE CITY, Nov. 9 /PRNewswire-FirstCall/ -- Myriad Genetics, Inc.
(Nasdaq: MYGN) today reported financial results for the first quarter of
fiscal 2005. For this three-month period ended September 30, 2004, predictive
medicine revenues increased to $14.4 million from $8.1 million for the same
quarter of the prior year, an increase of 79%.
Compared with the fourth quarter of fiscal 2004, predictive medicine
revenues were up $1.3 million, or 10%. Greater demand for the Company's
predictive medicine products resulted from increased sales and marketing
efforts coupled with recent publications that indicate enhanced utility of the
BRACAnalysis(R) product in medical care. These publications include a study
demonstrating the greater value of MRI screening as compared with conventional
mammography among women with a mutation in a BRCA breast cancer gene.
The gross profit margin on the predictive medicine business was 71% for
the first quarter of fiscal 2005, compared with 66% for the first quarter of
the prior year. This gross profit margin increase resulted from technology
improvements, efficiency gains and the realization of recent price increases
in the predictive medicine business.
Total revenues for the first quarter were $16.7 million, up 22% from the
same quarter of the prior year. Research revenues were $2.3 million for the
first quarter of fiscal 2005, compared with approximately $2 million for each
of the previous two quarters. Research revenues decreased 59% from the first
quarter of fiscal 2004, reflecting the Company's continued emphasis on
internal drug development programs and reduced emphasis on external research
collaborations.
Research and development expenses for the three months ended September 30,
2004 were $13.1 million compared with $13.0 million for the same three-month
period in the prior year. This investment in research and development was
largely composed of clinical trial expenses associated with the continuing
development of Myriad's therapeutic products in prostate cancer and
Alzheimer's disease and was partially offset by a decrease in research expense
associated with external collaborations.
The net loss for the first quarter of fiscal 2005 was $10.0 million, or
$0.33 per share, compared with a net loss of $10.5 million, or $0.37 per share
for the previous quarter, ended June 30, 2004. As of September 30, 2004,
Myriad remains in strong financial condition, with approximately $130 million
in cash, cash equivalents and marketable investment securities. The Company
has no debt or convertible securities.
"We are pleased with the strong growth in product revenues during the
quarter," said Peter Meldrum, President and Chief Executive Officer of Myriad
Genetics, Inc. "In addition, the progress we have achieved in advancing our
preclinical drug candidates has kept us on track toward submitting two new IND
applications before the end of this calendar year."
Conference Call and Webcast
A conference call with Company management will be held today at 10:00 a.m.
Eastern 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) 589-2821. International callers may dial
(706) 634-2173. A replay of the call will be made available for one week,
beginning two hours after the call, and can be accessed by dialing
(800) 642-1687 or (706) 645-9291, and entering conference ID #1770098. The
audio conference call can also be accessed on the Web at www.myriad.com
Myriad Genetics, Inc. is a leading biopharmaceutical company focused on
the development of novel healthcare products. The Company develops and markets
proprietary predictive medicine products, and is developing and intends to
market a number of promising therapeutic products that address large potential
markets. Myriad's news and other information are available on the Company's
Web site at www.myriad.com.
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. 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 or implied by forward-looking
statements. These statements include, but are not limited to increased demand
for the Company's predictive medicine products, strong growth in product
revenues, continued publications on the importance of the BRACAnalysis(R)
product, the Company's continued emphasis on internal drug development
programs and reduced emphasis on external research collaborations, continued
development of the Company's therapeutic products in clinical trials and the
expenses associated therewith and the targeted submission of two IND
applications before the end of this calendar year, uncertainties as to the
extent of future government regulation of Myriad Genetics' business; risks and
uncertainties as to whether Myriad Genetics and its collaborators will be
successful in developing, and obtaining regulatory approval for, and
commercial acceptance of, therapeutic compounds; the risk that markets will
not exist for therapeutic compounds that Myriad Genetics develops or if such
markets exist, that Myriad Genetics will not be able to sell compounds which
it develops at acceptable prices; the risk that the Company will not be able
to sustain revenue growth for its predictive medicine business and products,
and risks associated with preclinical development activities that could cause
delays in, or even prevent, planned IND applications. These and other risks
are identified in the Company's filings with the Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K for the fiscal
year ended June 30, 2004. All information in this press release is as of
November 9, 2004, and Myriad undertakes no duty to update this information
unless required by law.
BRACAnalysis is a registered trademark of Myriad Genetics, Inc. in the
United States and certain other foreign countries.
MYRIAD GENETICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except per share amounts) Three Months Ended
Sep. 30, 2004 Sep. 30, 2003
REVENUES:
Predictive medicine revenue $14,429 $8,064
Research revenue 2,281 5,079
Related party research revenue -- 529
Total research revenue 2,281 5,608
Total revenues 16,710 13,672
COSTS AND EXPENSES:
Predictive medicine cost of revenue 4,239 2,758
Research and development expense 13,132 12,974
Selling, general and
administrative expense 9,956 8,108
Total costs and expenses 27,327 23,840
Operating loss (10,617) (10,168)
Other income (expense):
Interest income 632 569
Other (7) (10)
625 559
Net loss ($9,992) ($9,609)
Basic and diluted loss per share ($0.33) ($0.35)
Basic and diluted weighted
average shares outstanding 30,649 27,087
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands) Sep. 30, 2004 Jun. 30, 2004
Cash, cash equivalents, and
marketable investment securities $129,589 $141,839
Trade receivables, net 16,627 13,994
Other receivables 1,452 554
Prepaid expenses 5,804 7,279
Equipment and leasehold improvements, net 16,793 17,339
Other assets 7,213 7,351
Total assets $177,478 $188,356
Accounts payable and accrued liabilities $12,704 $13,871
Deferred revenue 1,157 1,209
Stockholders' equity 163,617 173,276
Total liabilities and
stockholders' equity $177,478 $188,356
SOURCE Myriad Genetics, Inc.
11/09/2004
CONTACT: William A. Hockett, Vice President of Corporate Communications
of Myriad Genetics, Inc., +1-801-584-3600, bhockett@myriad.com
Web site: http://www.myriad.com
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