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Myriad Genetics Reports Results for Second Quarter of Fiscal 2007
Molecular Diagnostics Revenues Up 46%, Gross Profits Up 56%
SALT LAKE CITY, February 06, 2007—Myriad Genetics, Inc. (NASDAQ: MYGN) today reported financial
results for the second quarter of fiscal 2007 and the six months
ended December 31, 2006.
For the second fiscal quarter of 2007, molecular diagnostics revenues
increased by 46% to $34.2 million, from $23.4 million in the second
quarter of fiscal 2006. Compared with the first quarter of fiscal
2007, molecular diagnostics revenues experienced strong, double-digit
growth of 11%.
For the first six months of fiscal 2007, molecular diagnostics
revenues were $65.0 million, an increase of 45% from the $44.9 million
of the same period last year. This increase in molecular diagnostics
revenues reflects strong customer demand for Myriad's molecular
diagnostics products due in part, we believe, to the demonstrated
clinical utility of the tests and the clinical value to patients
themselves of using Myriad's BRACAnalysis®, COLARIS®,
and MELARIS® molecular diagnostics products.
Gross profit margins from sales of molecular diagnostics products
reached a record 78% in the second quarter, an increase of five
percentage points over the 73% from the same period last year, and
four points higher than the first quarter of fiscal 2007. Improved
gross profit margins primarily resulted from the introduction of new,
more efficient operating systems. Gross profits from the molecular
diagnostics business were $26.6 million for the second quarter of
fiscal 2007, a 56% increase from the same period last year and a 17%
increase from the first quarter of fiscal 2007.
Research and development expense was $24.8 million for the quarter,
compared with $19.0 million for research and development in the same
quarter of the prior year. This 30% increase in research and
development expense includes the ongoing investment to continue moving
Flurizan™ and Azixa™ toward regulatory approval, continue
clinical development of the Company's MPC-0920 and MPC-2130 candidate
drugs and to advance promising late-stage preclinical drug compounds
toward the submission of an IND.
As of December 31, 2006, Myriad had approximately $204 million in
cash, cash equivalents and marketable investment securities. The
Company has no debt and no convertible securities.
"We are pleased to once again report excellent growth in our
molecular diagnostics business and continued progress in advancing our
drug candidates through the regulatory process," commented Peter
Meldrum, President and CEO of Myriad Genetics, Inc. "As we have seen
in previous years, our second quarter was particularly strong, with
record revenues and strong profit margins. Additionally, I am pleased
to report that strong sample flow has continued into our third fiscal
quarter."
The net loss per share for the second quarter of fiscal 2007 was
$0.22, unchanged from the $0.22 per share from the same period in
fiscal 2006. Net loss for the second quarter of fiscal 2007 was $8.8
million, compared with $8.0 million for the same quarter of fiscal
2006. This nominal increase was realized by carefully controlling
expenses despite the initiation of a European Phase 3 human clinical
trial of Flurizan (tarenflurbil) in patients with mild Alzheimer's
disease and a 30% increase in research and development expenditures
over the same quarter last year.
Update on Flurizan™
After recent discussions with the United States Food and Drug
Administration and further analysis of the Company's Phase 2 data,
the Company has determined to continue its U.S. Phase 3 trial of
Flurizan in the United States, through to its full 18-month term,
without conducting an interim analysis of the data at 12 months.
Additionally, the governing bodies that regulate generic drug names
have assigned to Flurizan a generic name with a new word stem that
identifies it as the first member of a new class of compounds known
as Selective Amyloid Lowering Agents, or SALAs. Flurizan is the first
to receive the new word stem, "—flurbil", and will now be known
generically as "tarenflurbil." Both the United States Adopted Names
Council and the International Nonproprietary Names organization have
assigned this new generic name to Flurizan, providing a consistent
compound-specific name across all markets.
Conference Call and Audio Web Cast
Myriad management will host a conference call today at 10:00 am
Eastern time to discuss these results and other recent Company events.
The dial-in number for the conference call will be (888) 589-2820, or
(706) 634-2173. Callers will be required to give the conference
identification number, 6647309. 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 audiocast over the
internet through a link on Myriad's home page at www.myriad.com.
Myriad Genetics, Inc. is a biopharmaceutical company focused on the
development and marketing of novel healthcare products. The Company
develops and markets molecular diagnostics products, and is
developing and intends to market therapeutic products in the fields
of Alzheimer's disease, cancer and viral diseases. Myriad's news and
other information are available on the Company's Web site at
www.myriad.com.
Azixa™, BRACAnalysis®, COLARIS(R), Flurizan™ and Melaris®
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 our belief that significant increases
in the Company's molecular diagnostics revenue reflect strong
customer demand for our molecular diagnostics products due in part to
the demonstrated clinical utility of the tests and the exceptional
value to patients, improved gross profit margins from the
introduction of new, more efficient operating systems, continued
growth in molecular diagnostic product revenues and advances in
moving our drug candidates towards the market, the continued strong
sample flow into our third fiscal quarter, management's beliefs
concerning the expenditures necessary to advance the Company's
therapeutic product candidates through regulatory approvals, and
management's belief in the utility of continuing the Phase 3 trial of
Flurizan™ through the full 18-month term. 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 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 molecular diagnostic 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" contained in Item 1A in our Annual Report on Form 10-K for
the year ended June 30, 2006, which has been filed with the
Securities and Exchange Commission, as well as any updates to those
risk factors filed from time to time in our Quarterly Reports on Form
10-Q or Current Reports on Form 8-K. All information in this press
release is as of February 6, 2007, 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 Six Months Ended
-------------------- --------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2006 2005 2006 2005
--------- --------- --------- ---------
REVENUES:
Molecular diagnostic revenue $ 34,175 $ 23,392 $ 65,026 $ 44,921
Research revenue 2,960 3,938 5,652 $ 7,524
--------- --------- --------- ---------
Total revenues 37,135 27,330 70,678 52,445
COSTS AND EXPENSES:
Molecular diagnostic cost of
revenue 7,529 6,272 15,634 12,075
Research and development
expense 24,764 19,030 51,116 37,495
Selling, general and
administrative expense 16,211 11,628 30,297 22,528
--------- --------- --------- ---------
Total costs and expenses 48,504 36,930 97,047 72,098
--------- --------- --------- ---------
Operating loss (11,369) (9,600) (26,369) (19,653)
Other income (expense):
Interest income 2,573 1,649 5,175 2,460
Other - (1) (27) (1)
--------- --------- --------- ---------
2,573 1,648 5,148 2,459
--------- --------- --------- ---------
Net loss ($ 8,796) ($ 7,952) ($ 21,221) ($ 17,194)
========= ========= ========= =========
Basic and diluted loss per
share ($ 0.22) ($ 0.22) ($ 0.53) ($ 0.52)
========= ========= ========= =========
Basic and diluted weighted
average shares outstanding 39,808 35,547 39,754 33,217
========= ========= ========= =========
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands) Dec. 31, 2006 Jun. 30, 2006
------------- -------------
Cash, cash equivalents, and marketable
investment securities $ 203,511 $ 227,744
Trade receivables, net 24,006 20,820
Other receivables 2,920 1,397
Prepaid expenses 3,932 2,326
Equipment and leasehold improvements, net 23,761 19,829
Other assets 4,192 4,487
------------- -------------
Total assets $ 262,322 $ 276,603
Accounts payable and accrued liabilities $ 26,038 $ 26,705
Deferred revenue 434 117
Stockholders' equity 235,850 249,781
------------- -------------
Total liabilities and stockholders' equity $ 262,322 $ 276,603
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