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Myriad Genetics, Inc. Reports Results for First Quarter of Fiscal 2006
– Net Loss Shrinks on Strong Predictive Medicine Revenues –
Salt Lake City, October 26, 2005 – Myriad Genetics, Inc.
(Nasdaq: MYGN) today reported financial results for the first quarter of
fiscal 2006. For the three-month period ended September 30, 2005, predictive
medicine revenues increased to $21.5 million from $14.4 million in the same
quarter of the prior year, an increase of 49%. Growth in predictive medicine
revenues resulted from increased market penetration across all four product
lines.
Total revenues for the first quarter of fiscal 2006 were $25.1 million, up
50% from $16.7 million in the same quarter of the prior year. Research
revenues were $3.6 million for the first quarter of fiscal 2006, compared with
$2.3 million for first quarter of fiscal 2005, an increase of 57%. While this
level of research revenues represents growth compared to the first fiscal
quarter of the prior year, we expect that our continued focus will be our
internal drug development and predictive medicine programs and we plan to
continue to de-emphasize external research collaborations.
For the first fiscal quarter ended September 30, 2005, gross profits from
predictive medicine were $15.7 million, compared to $10.2 million for the same
quarter of the prior year, an increase of 54%. The gross profit margin on the
predictive medicine business was 73% for the first quarter of fiscal 2006,
compared with 71% for the first quarter of the prior year.
Research and development expenses for the three months ended
September 30, 2005 were $18.5 million compared to $13.1 million for the same
three-month period in the prior year. This increased investment in research
and development was primarily due to increased clinical trial expenses
associated with the continuing development of our therapeutic products
targeted for prostate cancer, brain cancer, solid tumors, blood cancer,
metastatic cancer and Alzheimer's disease.
"We are pleased with the strong growth in predictive medicine product
revenues during what has traditionally been a weaker sales quarter," said
Peter Meldrum, President and Chief Executive Officer of Myriad Genetics, Inc.
"In addition, we believe that the progress in our thrombosis and HIV
therapeutic programs has kept us on track towards submitting one or two new
IND applications this fiscal year."
Selling, general and administrative expenses for the first quarter of
fiscal 2006 were $10.9 million, compared with $10.0 million for the same
quarter of the prior year. This increase of 9% was primarily attributable to
general costs associated with the growth in predictive medicine revenues and
our therapeutic development efforts.
The net loss for the first quarter of fiscal 2006 was $9.2 million, or
$0.30 per share, compared with a net loss of $10.0 million, or $0.33 per share
for the same quarter in the prior year. This is a reduction in net loss of
$0.8 million, or 8%. As of September 30, 2005, Myriad remains in strong
financial condition, with approximately $103 million in cash, cash equivalents
and marketable investment securities. The Company has no debt or convertible securities.
Flurizan Follow-on Data at 18-Months to be Presented November 15, 2005
Patients in Myriad's follow-on Phase 2 study of Flurizan, the Company's
lead therapeutic product candidate for the treatment of Alzheimer's disease,
have now been on study medication for over 18 months. The 18-month follow-on
data has been analyzed and is scheduled for presentation by Dr. Sandra Black,
co-lead investigator for Myriad's Phase 2 trial, on Tuesday, November 15, 2005
at 9:15 a.m., during Neuroscience 2005, the 35th Annual Meeting of the Society
for Neuroscience. This meeting will be held at the Washington Convention
Center in Washington, DC, from November 12-16, 2005.
Conference Call and Webcast - 10:30 a.m. Today
A conference call with Company management will be held today at 10:30 a.m.
Eastern Time with investors and media to discuss these results and recent
events at the Company. Between 10:15 a.m. and 10:30 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 and marketing 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 in
the fields of cancer, Alzheimer's disease and viral disease. Myriad's news
and other information are available on the Company's website at
www.myriad.com.
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, including
statements relating to increased market penetration for the Company's
predictive medicine products, strong growth in predictive medicine product
revenues, the Company's continued focus on internal drug development and
predictive medicine programs and reduced focus on external research
collaborations, continued development of the Company's therapeutic products in
clinical trials and the expenses associated therewith, and the submission of
one or two IND applications before the end of the fiscal year. 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 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 predictive
medicine 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" in our Annual Report on Form 10-K for the year ended
June 30, 2005, which has been filed with the Securities and Exchange
Commission. All information in this press release is as of October 26, 2005
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, 2005 Sep. 30, 2004
REVENUES:
Predictive medicine revenue $21,529 $14,429
Research revenue 3,585 2,281
Total revenues 25,114 16,710
COSTS AND EXPENSES:
Predictive medicine cost of
revenue 5,803 4,239
Research and development expense 18,466 13,132
Selling, general and
administrative expense 10,898 9,956
Total costs and expenses 35,167 27,327
Operating loss (10,053) (10,617)
Other income (expense):
Interest income 811 632
Other -- (7)
811 625
Net loss ($9,242) ($9,992)
Basic and diluted loss per share ($0.30) ($0.33)
Basic and diluted weighted
average shares outstanding 30,886 30,649
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands) Sep. 30, 2005 Jun. 30, 2005
Cash, cash equivalents, and marketable
investment securities $102,997 $113,843
Trade receivables, net 18,747 17,236
Other receivables 978 1,145
Prepaid expenses 4,639 3,331
Equipment and leasehold improvements,
net 17,875 18,466
Other assets 4,799 4,937
Total assets $150,035 $158,958
Accounts payable and accrued
liabilities $18,348 $22,033
Deferred revenue 3,999 1,252
Stockholders' equity 127,688 135,673
Total liabilities and stockholders'
equity $150,035 $158,958
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