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Myriad Genetics Reports Results for Second Quarter of Fiscal 2006
- Record Revenues and Lower Loss Highlight Quarter -
SALT LAKE CITY, February 7, 2006 – Myriad Genetics, Inc.
(Nasdaq: MYGN)
(www.myriad.com) today reported
financial results for the second quarter of
fiscal 2006 and the six months ended December 31, 2005.
For the second fiscal quarter of 2006, total revenues grew to a record
$27.3 million from $19.6 million in the same quarter of fiscal 2005. The net
loss was reduced to $8.0 million from $10.0 million in the second quarter last
year and the net loss per share was $0.22, compared with $0.33 in the same
quarter of fiscal 2005.
Predictive medicine revenues increased $5.9 million from $17.5 million for
the same quarter last year. Compared with the first quarter of fiscal 2006,
predictive medicine revenues were up 9%. This significant increase in
predictive medicine revenues reflects strong customer demand for Myriad's
predictive medicine products due in part, we believe, to the demonstrated
clinical utility of the test and the value to patients of using Myriad's
BRACAnalysis®, COLARIS®, and MELARIS® predictive medicine products. For
the first six months of this year, predictive medicine revenues were
$44.9 million, an increase of 41% from $32.0 million during the same period
last year.
Research revenues increased 87% from $2.1 million for the second quarter
of fiscal 2005 to $3.9 million for the second quarter of fiscal 2006. Despite
this increase, the Company continues to reduce the emphasis on external
research collaborations in favor of its own in-house drug development
programs. Total revenues in the second quarter of 2006 increased to
$27.3 million, from $19.6 million for the same period of fiscal 2005, an
increase of 39% year-to-year. Compared with the first quarter of fiscal 2006,
total revenues increased by $2.2 million, or 9%.
Net loss for the second quarter of fiscal 2006 was $8.0 million or
$0.22 per share, compared with $10.0 million, or $0.33 per share, for the same
quarter of fiscal 2005. This approximately $2.0 million, or 20% reduction in
net loss is in large part the result of an increased contribution from our
profitable predictive medicine business. As of December 31, 2005, Myriad had
approximately $235 million in cash, cash equivalents and marketable investment
securities. The Company has no debt or convertible securities.
"We are pleased to report the continued growth in our predictive medicine
business and the excellent progress in advancing our drug candidates through
the regulatory process," commented Peter Meldrum, President and CEO of Myriad
Genetics, Inc. "Second quarter was particularly strong, with record revenues,
strong profit margins and a significant reduction in our net loss."
Research and development expense was $19.0 million for the quarter,
compared to $14.5 million for research and development in the same quarter of
the prior year. This 31% increase in research and development expense
includes the ongoing investment necessary to the continuation of six clinical
trials and the advancement of several promising late-stage preclinical drug
compounds toward IND submission. The human clinical trials consist of a Phase
3 study of Flurizan in Alzheimer's disease, a 12-month follow-on study to the
Phase 2 Alzheimer's disease trial, a Phase 2b trial of MPC-7869 in prostate
cancer, two Phase 1 trials with MPC-6827 in metastatic cancer and
independently in brain cancer and a Phase 1 study of MPC-2130 in blood cancers
and advanced metastatic tumors.
An update on several of Myriad's clinical trials, including their current
status as well as any recent or anticipated protocol amendments, will be
provided by Company management during the conference call detailed below.
Conference Call and Audio Web Cast
Myriad management will host a conference call today at 10:00 am Eastern
time to discuss the company's results and other recent events. The dial-in
number for the conference call will be (888) 589-2820, or (706) 634-2173.
Callers will be required to enter the conference identification number,
4574985. 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 through a link on Myriad's home page at www.myriad.com.
Myriad Genetics, Inc. is a biopharmaceutical company focused on the
development of novel healthcare products. The Company develops and markets
predictive medicine products, and is developing and intends to market
therapeutic products. 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 in or implied by forward-looking
statements. These statements include, but are not limited to increased demand
for the Company's predictive medicine products; the clinical utility of the
Company's predictive medicine tests and the value to patients of using the
tests; strong growth in product revenues; and continued development of, and
increased investment in, the Company's therapeutic products in clinical trials
and the expenses associated therewith. Factors that could cause actual
results to differ materially from those set forth in or implied by the
forward-looking statements include: 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 factors are
discussed in the Company's filings with the Securities and Exchange
Commission, including our Current Report on Form 8K filed on October 28, 2005.
All information in this press release is as of February 7, 2006, and Myriad
undertakes no duty to update this information unless required by law.
- Financial Charts Follow -
MYRIAD GENETICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except Three Months Ended Six Months Ended
per share amounts) Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
REVENUES:
Predictive medicine
revenue $23,392 $17,535 $44,921 $31,964
Research revenue 3,938 2,104 7,524 $4,385
Total revenues 27,330 19,639 52,445 36,349
COSTS AND EXPENSES:
Predictive medicine
cost of revenue 6,272 5,131 12,075 9,370
Research and
development expense 19,030 14,546 37,495 27,678
Selling, general and
administrative
expense 11,628 10,638 22,528 20,594
Total costs and
expenses 36,930 30,315 72,098 57,642
Operating loss (9,600) (10,676) (19,653) (21,293)
Other income (expense):
Interest income 1,649 687 2,460 1,319
Other (1) (59) (1) (66)
1,648 628 2,459 1,253
Net loss ($7,952) ($10,048) ($17,194) ($20,040)
Basic and diluted
loss per share ($0.22) ($0.33) ($0.52) ($0.65)
Basic and diluted
weighted average
shares outstanding 35,547 30,682 33,217 30,666
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands) Dec. 31, 2005 Jun. 30, 2005
Cash, cash equivalents, and
marketable investment securities $235,079 $113,843
Trade receivables, net 18,979 17,236
Other receivables 1,014 1,145
Prepaid expenses 6,737 3,331
Equipment and leasehold improvements, net 18,658 18,466
Other assets 4,762 4,937
Total assets $285,229 $158,958
Accounts payable and accrued liabilities $22,291 $22,033
Deferred revenue 1,292 1,252
Stockholders' equity 261,646 135,673
Total liabilities and
stockholders' equity $285,229 $158,958
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