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Myriad Genetics Reports Financial Results for Fiscal 2006
Record $114 Million Revenues, Lower Loss and Progress in Drug Pipeline Highlight Year of Accomplishment
Salt Lake City, August 22, 2006—Myriad Genetics, Inc.
(Nasdaq: MYGN)
(www.myriad.com) today
reported financial results for its fourth quarter and
fiscal year ended June 30, 2006.
In fiscal 2006, predictive medicine product revenues increased to a record
$100.6 million from $71.3 million for fiscal 2005, an increase of 41%. For
the fourth quarter of fiscal 2006, predictive medicine revenues were
$28.8 million, up 7% from $26.9 million in the third quarter of fiscal 2006.
These increases were due primarily to Myriad's strong sales and marketing
efforts, which have resulted in increased demand for our products. Growth was
seen across all four molecular diagnostic product lines. Total revenues for
fiscal 2006 were $114.3 million, compared with $82.4 million for fiscal 2005,
an increase of 39%.
The gross profit margin on predictive medicine revenues rose to 73% for
fiscal 2006, primarily as a result of efficiency improvements in managing the
sequencing laboratories.
Myriad has maintained a strong cash position, and as of June 30, 2006, the
Company had approximately $228 million in cash, cash equivalents and
marketable investment securities. The company has no debt and no convertible
securities.
Peter Meldrum, President and Chief Executive Officer of Myriad Genetics,
Inc., said, "Our molecular diagnostics business provided $35 million in net
operating income this year, which we used primarily to advance our therapeutic
product development programs. This past year, we initiated a new European
Phase 3 trial of our Alzheimer's disease investigational drug, Flurizan™.
We also completed our two-year Phase 2 study with the investigational drug,
which demonstrated that Flurizan slowed the rate of memory loss and cognitive
decline in patients with mild Alzheimer's disease. In addition, we began
human clinical trials with MPC-0920, our novel anti-thrombin investigational
drug. Most recently, we have finished enrollment of our 1,600 patient US
Phase 3 trial in Alzheimer's disease."
Research and development expense for fiscal 2006 was $83.8 million
compared with $59.2 million for the same period in the prior year. This 41%
increase in investment in R&D was due primarily to advancing Myriad's
therapeutic development programs in Alzheimer's disease and cancer,
specifically the enrollment of approximately 1,600 patients in our US phase 3
study of Flurizan, the launch of a European Phase 3 study of Flurizan and the
advancement of four additional trials with novel investigational cancer drugs.
In our Phase 1 study of Azixa™ in cancer that has metastasized to the
brain, the drug has recently achieved its maximum tolerated dose in patients.
Interestingly, we noted a measurable reduction in tumor size in certain
patients, suggesting evidence of activity. Myriad is now finalizing the
therapeutic dose and regimen to take Azixa forward into Phase 2 trials
beginning this fall.
Selling, general and administrative expenses were $48.5 million in fiscal
2006, an 11% increase from $43.6 million in fiscal 2005. This modest increase
was primarily due to increases in costs to support the 41% growth in our
product revenues.
The net loss per share for fiscal year 2006 improved to $1.05 per share,
compared with $1.30 per share for fiscal 2005. The net loss as of June 30,
2006 was $38.2 million, a 4% reduction from $40.0 million last year. The net
loss per share for the fourth quarter of fiscal 2006 was $0.29, compared with
$0.32 per share, from the fourth quarter of fiscal 2005.
Conference Call and Webcast
A conference call with Company management will be held today at 10:00 a.m.
Eastern Daylight 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) 589-2820. International callers may dial
(706) 634-2173. All callers will need to reference conference ID number
4307020. An archived replay of the call will be available for 7 days by
dialing (800) 642-1687 or (706) 645-9291, and entering conference ID number
4307020. The conference call will also be audiocast over the Web and can be
accessed through: 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.
Flurizan and Azixa 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 the Company's increased predictive medicine revenues
and gross profit margins; the continued positive cash flow generated by the
Company's predictive medicine business; the Company's continued investment in
research and development; the advancement of the Company's therapeutic
pipeline, including the initiation of Phase 2 trials of Azixa this fall.
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 able to sustain revenue growth for its predictive medicine
business and products. These and other risks are identified in the Company's
filings with the Securities and Exchange Commission, including the Company's
Current Report on Form 8-K as filed with the Securities and Exchange
Commission on October 28, 2005. All information in this press release is as
of August 22, 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 Twelve Months Ended
Jun. 30, Jun. 30, Jun. 30, Jun. 30,
2006 2005 2006 2005
REVENUES:
Predictive medicine revenue $28,833 $20,975 $100,621 $71,325
Research revenue 3,192 5,121 13,658 $11,081
Total revenues 32,025 26,096 114,279 82,406
COSTS AND EXPENSES:
Predictive medicine cost of
revenue 8,064 5,655 27,644 20,322
Research and development expense 24,294 16,025 83,757 59,243
Selling, general and
administrative expense 13,649 13,158 48,467 43,586
Total costs and expenses 46,007 34,838 159,868 123,151
Operating loss (13,982) (8,742) (45,589) (40,745)
Other income (expense):
Interest income 2,545 755 7,412 2,798
Other 13 (1,965) (12) (2,031)
2,558 (1,210) 7,400 767
Net loss ($11,424) ($9,952) ($38,189) ($39,978)
Basic and diluted loss per share ($0.29) ($0.32) ($1.05) ($1.30)
Basic and diluted weighted
average shares outstanding 39,547 30,800 36,278 30,720
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands) Jun. 30, Jun. 30,
2006 2005
Cash, cash equivalents, and
marketable investment securities $227,744 $113,843
Trade receivables, net 20,820 17,236
Other receivables 1,397 1,145
Prepaid expenses 2,326 3,331
Equipment and leasehold
improvements, net 19,829 18,466
Other assets 4,487 4,937
Total assets $276,603 $158,958
Accounts payable and accrued
liabilities $26,705 $22,942
Deferred revenue 117 343
Stockholders' equity 249,781 135,673
Total liabilities and
stockholders' equity $276,603 $158,958
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