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Myriad Genetics Reports Results for Third Quarter of Fiscal 2006
Revenues Increase 49% Over Third Quarter, Fiscal 2005
Salt Lake City, May 2, 2006—Myriad Genetics, Inc.
(Nasdaq: MYGN)
(www.myriad.com) today reported consolidated financial results for the third
quarter of fiscal 2006 and the nine months ended March 31, 2006.
Total revenues in the third quarter of fiscal 2006 were $29.8 million,
compared with $20.0 million in the third quarter of fiscal 2005, an increase
of 49%. For the nine months ended March 31, 2006, total revenues were
$82.3 million, compared with $56.3 million in the same period in fiscal 2005,
an increase of 46%. Total revenues are comprised primarily of predictive
medicine products sales and also include some research revenues.
For the third quarter, predictive medicine product revenues rose to
$26.9 million from $18.4 million in the same quarter of the prior year, an
increase of 46%. Through the first nine months of the current year,
predictive medicine revenues increased to $71.8 million from $50.4 million in
the same period of fiscal 2005, a gain of 43%. Compared with the second
quarter of fiscal 2006, predictive medicine revenues achieved a sequential
quarterly increase of 15%. We believe that our increased sales, marketing and
educational efforts have resulted in wider acceptance of our products by the
medical community and increased demand by patients for predictive medicine
testing. Net operating profits for our predictive medicine business increased
to $9.6 million, representing a 36% net operating margin in the third quarter
of fiscal 2006, compared with $4.6 million, or 25% net margin for the same
quarter of fiscal 2005.
"I am pleased to report that our predictive medicine business achieved
another quarter of record revenues and record net operating profits," said
Peter Meldrum, President and Chief Executive Officer of Myriad Genetics, Inc.
"Additionally, we are aggressively pursuing an exciting therapeutic
opportunity to develop novel, first-in-class drugs for the treatment of
Alzheimer's disease, metastatic brain cancer and AIDS. "
Research and development expense for the three months ended March 31, 2006
were $22.0 million, compared to $15.5 million for the same three months in
2005. This increase of 41% was primarily due to increased costs associated
with the Company's seven ongoing clinical trials, the preparation for
additional clinical trials including a global Phase 3 Alzheimer's disease
trial and increases in the Company's drug discovery and drug development
programs.
Clinical trials in progress during the third quarter consisted of: a new
Phase 1 clinical trial, announced separately today, of MPC-0920 for the oral
treatment of thrombosis, a Phase 3 trial of Flurizan in Alzheimer's disease, a
12-month follow-on to the completed Phase 2 trial of Flurizan in Alzheimer's
disease, a Phase 2b trial of MPC-7869 in prostate cancer, two Phase 1 trials
of Azixa(TM), also referred to as MPC-6827, in solid tumors and brain
metastases, respectively, and a Phase 1 trial of MPC-2130 in blood cancers and
metastatic tumors.
Selling, general and administrative expenses for the three months ended
March 31, 2006 were $12.3 million, compared to $9.8 million for the same three
months in 2005. This increase of 25% was generally attributable to increased
costs incurred to support the 46% increase in predictive medicine revenues and
increases in therapeutic development.
The net loss for the third quarter of fiscal year 2006 was $9.6 million,
or $0.24 basic and diluted loss per share. The net cash used in operating
activities was $24.7 million during the nine months ended March 31, 2006,
compared with $24.8 million during the same nine month period in fiscal 2005.
The Company ended the third quarter in strong financial condition with no debt
and approximately $229 million in cash, cash equivalents and marketable
investment securities.
Conference Call and Webcast
A conference call with Company management will be held today, Tuesday,
May 2, 2006 at 10:00 a.m. Eastern time to discuss these results and recent
events at the Company. Callers are requested to dial in between 9:45 a.m. and
10:00 a.m. to (888) 589-2820 or (706) 634-2173, and enter conference
ID# 8218738. An archived replay of the call will be available for seven days
by dialing (800) 642-1687 or (706) 645-9291, and entering the conference
identification number 8218738. The conference call will also be audiocast
over 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 and personalized medicine products,
and is developing and intends to market a number of 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, including
statements relating to the Company's focus on developing drugs for the
treatment of Alzheimer's disease, metastatic brain cancer and AIDS; continued
growth of predictive medicine product revenue due to increased sales,
marketing and educational efforts and wider acceptance by the medical
community; and the continued development of Myriad's anti-cancer compounds.
These forward-looking statements are based on management's current expectation
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 include, but are not limited to,
uncertainties as to the extent of future government regulation of Myriad
Genetics' business; 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; and the risk that the
Company will not be able to sustain revenue growth for its predictive medicine
business and products. These and other factors are discussed in the Company's
filings with the Securities and Exchange Commission, including our Current
Report on Form 8-K filed on October 28, 2005. All information in this press
release is as of May 2, 2006, 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 Nine Months Ended
Mar. 31, Mar. 31, Mar. 31, Mar. 31,
2006 2005 2006 2005
REVENUES:
Predictive medicine revenue $26,867 $18,386 $71,788 $50,350
Research revenue 2,942 1,575 10,466 $5,960
Total revenues 29,809 19,961 82,254 56,310
COSTS AND EXPENSES:
Predictive medicine cost of
revenue 7,505 5,297 19,581 14,667
Research and development expense 21,967 15,540 59,463 43,218
Selling, general and
administrative expense 12,291 9,834 34,818 30,429
Total costs and expenses 41,763 30,671 113,862 88,314
Operating loss (11,954) (10,710) (31,608) (32,004)
Other income (expense):
Interest income 2,407 724 4,867 2,044
Other (24) -- (24) (66)
2,383 724 4,843 1,978
Net loss ($9,571) ($9,986) ($26,765) ($30,026)
Basic and diluted loss per share ($0.24) ($0.32) ($0.76) ($0.98)
Basic and diluted weighted
average shares outstanding 39,232 30,749 35,192 30,693
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands) Mar. 31, 2006 Jun. 30, 2005
Cash, cash equivalents, and marketable
investment securities $229,334 $113,843
Trade receivables, net 20,514 17,236
Other receivables 1,074 1,145
Prepaid expenses 3,097 3,331
Equipment and leasehold improvements, net 19,650 18,466
Other assets 4,624 4,937
Total assets $278,293 $158,958
Accounts payable and accrued liabilities $20,491 $22,033
Deferred revenue 1,102 1,252
Stockholders' equity 256,700 135,673
Total liabilities and stockholders' equity $278,293 $158,958
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