| |
|
|
|
Myriad Genetics Reports Results for Third Quarter of Fiscal 2007
80% Gross Profit Margin and 41% Growth in Product Revenues in Standout Quarter
Salt Lake City, UT, May 01, 2007—Myriad Genetics, Inc.
(NASDAQ:MYGN)
(www.myriad.com) today reported
consolidated financial results for the third quarter of fiscal 2007
and the nine months ended March 31, 2007.
Molecular diagnostic revenues for the third quarter of fiscal 2007
were $38.0 million, compared with $26.9 million in the third quarter
of fiscal 2006, an increase of 41%. For the nine months ended March
31, 2007, molecular diagnostic revenues rose to $103 million, from
$71.8 million in the same period in fiscal 2006. Compared with the
second quarter of fiscal 2007, molecular diagnostic revenues achieved
a sequential quarterly increase of over 11%. Increased sales,
marketing and educational efforts continue to result in wider
acceptance of Myriad's products by the medical community and
increased demand by patients for molecular diagnostic testing,
driving increased revenues. Total revenues for the quarter were $41
million, compared to $29.8 million in the same period last year.
Coupled with the strong revenue growth of 41%, the molecular
diagnostic cost of revenue for the third quarter was only $7.6
million, compared to $7.5 million in the third quarter of fiscal
2006. As a result, the gross profit margin on the Company's molecular
diagnostic business reached 80% for the third quarter, an increase of
8 percentage points over the 72% gross profit margin from the third
quarter of fiscal 2006. This significant improvement was primarily
due to the implementation of new technology and software systems in
the molecular diagnostic laboratory.
Net operating profits for the Company's molecular diagnostic business
increased to $16.2 million, representing a 43% net operating margin
in the third quarter of fiscal 2007. This result compares with $9.6
million, for the same quarter of fiscal 2006, a 69% increase in net
operating profits.
"We are pleased with the outstanding growth in our molecular
diagnostic business," said Peter Meldrum, President and Chief
Executive Officer of Myriad Genetics, Inc. "The strong consumer
demand for our products reaffirms the value of knowing one's risk of
developing cancer later in life. We look forward to expanding our
product line and anticipate launching the first of two new molecular
diagnostic products this summer."
Research and development expense for the three months ended March 31,
2007 was $23.4 million, compared to $22.0 million for the same three
months in 2006. This increase was primarily due to costs associated
with the Company's two ongoing Phase 3 clinical trials of
Flurizan™ in Alzheimer's disease and the two ongoing Phase 2
clinical trials with Azixa™ in melanoma and brain cancer.
Selling, general and administrative expenses for the three months
ended March 31, 2007 were $19.1 million, compared to $12.3 million for
the same three months in 2006. This increase was generally
attributable to increased costs incurred to support the 41% increase
in molecular diagnostic revenue and marketing costs associated with
the preparation of the Company's upcoming direct-to-consumer
advertising campaign.
The net loss for the third quarter of fiscal year 2007 was $5.9
million or $0.14 per share, which compares favorably to $9.6 million,
or $0.24 loss per share in third quarter fiscal 2006. This
improvement represents a reduction in loss of 42% on a per share
basis. The Company ended the third quarter in strong financial
condition with no debt and approximately $304 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 1, 2007 at 9:00 a.m. Eastern time to discuss these
results and recent events at the Company. Callers are requested to
dial in between 8:45 a.m. and 9:00 a.m. to (888) 589-2820 or (706)
634-2173, and enter conference ID# 7155363. 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
7155363. The conference call will also be audiocast over the Web at:
www.myriad.com.
Flurizan™ and Azixa™ are trademarks of Myriad Genetics, Inc.
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 increased sales, marketing and
educational efforts resulting in wider acceptance of Myriad products
by the medical community and increased demand by patients for
molecular diagnostic testing, driving increased revenues; the
continuation or improvement of gross profit margins on the Company's
molecular diagnostic business; the continued exceptional growth in
our molecular diagnostic business; the expansion of our product line
and anticipation of launching the first of two new molecular
diagnostic products in the summer of 2007. 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 not 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 the date of the release, 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,
2007 2006 2007 2006
--------- --------- --------- ---------
Revenues
Molecular diagnostic revenue $ 37,991 $ 26,867 $ 103,017 $ 71,788
Research revenue 2,979 2,942 8,631 10,466
--------- --------- --------- ---------
Total revenues 40,970 29,809 111,648 82,254
Costs and expenses:
Molecular diagnostic cost of
revenue 7,577 7,505 23,211 19,581
Research and development
expense 23,418 21,967 74,533 59,463
Selling, general and
administrative expense 19,067 12,291 49,365 34,818
--------- --------- --------- ---------
Total costs and expenses 50,062 41,763 147,109 113,862
--------- --------- --------- ---------
Operating loss (9,092) (11,954) (35,461) (31,608)
Other income (expense):
Interest income 3,123 2,407 8,298 4,867
Other 32 (24) 5 (24)
--------- --------- --------- ---------
3,155 2,383 8,303 4,843
--------- --------- --------- ---------
Net loss ($ 5,937) ($ 9,571) ($ 27,158) ($ 26,765)
========= ========= ========= =========
Basic and diluted loss per
share ($ 0.14) ($ 0.24) ($ 0.67) ($ 0.76)
========= ========= ========= =========
Basic and diluted weighted
average shares outstanding 41,503 39,232 40,329 35,192
========= ========= ========= =========
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands) Mar. 31, 2007 Jun. 30, 2006
------------- -------------
Cash, cash equivalents, and marketable
investment securities $ 304,347 $ 227,744
Trade receivables, net 25,461 20,820
Other receivables 2,130 1,397
Prepaid expenses 2,788 2,326
Equipment and leasehold improvements,
net 23,369 19,829
Other assets 4,054 4,487
------------- -------------
Total assets $ 362,149 $ 276,603
Accounts payable and accrued liabilities $ 22,553 $ 26,705
Deferred revenue 407 117
Stockholders' equity 339,189 249,781
------------- -------------
Total liabilities and stockholders'
equity $ 362,149 $ 276,603
|
|
|
