Earnings Release. I am surprised there hasn't been more reaction in price. Diagnostic revenues up 77%, with margins increasing from 24% to 50%. There have also been agreements with Insurance Co.s to provide coverage.
I got this from Quicken:
Thursday, November 11, 1999 07:30 AM
- Product Revenue Increases 77% Over Prior Year's First Quarter - - Net Loss Per Share Down 21%
Versus Prior Year's First Quarter -
SALT LAKE CITY, Nov. 11 /PRNewswire/ -- Myriad Genetics, Inc. (Nasdaq: MYGN, news, msgs)
today reported financial results for the first quarter of fiscal 2000.
For the three-month period ended September 30, 1999, total revenues increased 23% to $6,861,931
compared with $5,559,986 from the same quarter in the prior year. The increase resulted from greater
research revenue due primarily to the initiation of a major genomic sequencing project with Novartis,
and strong growth in molecular diagnostic revenue. Molecular diagnostic revenue increased 77% to
$1,614,286 from $913,470 for the quarter ended September 30, 1998.
In addition to the growth in molecular diagnostic product revenue, the gross margin on molecular
diagnostic revenue continued to increase, growing to 50% in the most recent quarter from 34% in the
same quarter one year ago, an increase of 47% over the prior year.
Net loss for the quarter was $2,191,092, or $0.23 per share, compared with $2,702,502, or $0.29 per
share, for the first quarter of fiscal 1999, a 21% reduction in the quarterly net loss per share. As of
September 30, 1999, Myriad had over $46 million in cash and investments.
"In the first quarter of fiscal 2000, Myriad further leveraged its expertise in DNA sequencing through an
exemplary two-year, $33.5 million, all-cash collaboration with Novartis Agricultural Discovery Institute,
Inc. (NADII) to discover the genetic structure of important cereal crops," stated Peter Meldrum,
President and CEO of Myriad Genetics, Inc. "In addition, we advanced our strategy of developing
therapeutic products, both within Myriad and in collaboration with our strategic partners. These
advances included the discovery of a major diabetes gene, the delivery of six novel drug targets to our
pharmaceutical partners and the discovery of an additional six proprietary drug targets in our internal
drug development program."
During the First Quarter, Fiscal 2000, Myriad Genetics Advanced the Company's Strategy on Many
Fronts, Including: -- Discovery of an important diabetes gene, for which the Company retains full
therapeutic and diagnostic product rights. The gene plays a significant role in the pathogenesis of
insulin-dependent diabetes. -- Broadened access to the ProNet database, which contains a substantial
library of intracellular and intercellular protein interactions, for the discovery of disease pathways and
discovery of targets for drug development. The public content of the ProNet database is scheduled to
premier on December 1, 1999 to researchers online, to allow them to sample and explore the
technology and experience its ease-of-use and broad utility to drug discovery. -- Driving drug
development forward in our Myriad Pharmaceuticals subsidiary. Assays were created for all six of the
new drug targets identified by Myriad and high-throughput screens were initiated against the first three.
The drug targets address major diseases with unmet medical needs that include cancer, rheumatoid
arthritis and several disorders of the central nervous system.
In addition to internal drug development at Myriad, the Company has 10 drug targets under pre-clinical
investigation by its corporate partners. The targets are from the disease areas of breast cancer, brain
cancer, prostate cancer, heart disease and dementia.
Myriad Genetics, Inc. is a leading genomics company focused on the development of therapeutic and
diagnostic products based on the discovery of genes involved in major common diseases. The
Company has established two wholly owned subsidiaries -- Myriad Pharmaceuticals, Inc., which
develops and markets therapeutic compounds ready for human clinical trials, and Myriad Genetic
Laboratories, Inc., which develops and markets proprietary molecular diagnostic services and has
introduced products in the fields of predictive medicine and personalized medicine. The Company has
established strategic alliances with Bayer, Eli Lilly, Monsanto, Novartis, Schering AG and
Schering-Plough.
The discussion in this news release includes forward-looking statements based on management's
current expectations. Factors that could cause future results to differ materially from such expectations
include: the timely implementation by the Company of its plan to prepare its computer systems for the
year 2000, the cost to the Company of such implementation, and the timely conversion by other
parties on which the Company's business relies; intense competition related to the discovery of
disease-related genes; the Company's limited marketing and sales experience and the risk that tests
which the Company develops may not be able to be marketed at acceptable prices or receive
commercial acceptance in the Company's target markets; uncertainty as to whether there will exist
adequate reimbursement for the Company's service from the government, private healthcare insurers
and third-party payors; uncertainties as to the extent of future government regulation of the Company's
business, uncertainties as to whether the Company and its collaborators will be successful in
developing, and obtaining regulatory approval for, and commercial acceptance of, therapeutics based
on the discovery of disease-related genes and proteins; uncertainties as to the Company's ability to
develop therapeutic lead compounds, which is a new business area for the Company; and the risk that
markets will not exist for therapeutic lead compounds that the Company develops or if such markets
exist, that the Company will not be able to sell compounds, which it develops, at acceptable prices. |
