Myriad Genetics Reports Financial Results for Fiscal 2003
Tuesday, August 26, 2003 06:30 AM ET Printer-friendly version
SALT LAKE CITY, Aug. 26 /PRNewswire-FirstCall/ -- Myriad Genetics, Inc.(Nasdaq: MYGN, news) today reported financial results for its fourth quarter and fiscal year ended June 30, 2003.
The Company reported that, for the year ended June 30, 2003, total revenues increased to a record $64.3 million from $53.8 million for fiscal 2002. This increase was due primarily to greater predictive medicine revenues. Predictive medicine revenues for the fourth quarter of fiscal 2003 were $9.4 million, an increase of 22% over the fourth quarter of fiscal 2002. These revenues showed continued strong growth during fiscal 2003, increasing by 29% to $34.7 million from $26.8 million for fiscal 2002. The gross profit margin on predictive medicine revenues increased to 64% in fiscal 2003, up from 60% for 2002.
The net loss for the fourth quarter of fiscal 2003 was $0.26 per share, or $7.1 million, as compared to a net loss for the same quarter in the prior year of $0.29 per share, or $6.8 million. The net loss for the full year, fiscal 2003, was $0.96 per share, compared with $0.59 per share for fiscal 2002. During the year, Myriad made substantial progress in drug development with the initiation of a Phase I, and later a Phase II clinical trial in Alzheimer's disease and the continuation of a Phase II/III trial in prostate cancer. Myriad believes that this fiscal 2003 net loss was relatively modest, given the fact that it was conducting three human clinical trials. Myriad has maintained a strong cash position, and as of June 30, 2003, the Company had $126 million in cash, cash equivalents and marketable investments.
"Therapeutic product development was our top priority during 2003," said Peter Meldrum, President and Chief Executive Officer of Myriad Genetics, Inc. "Substantial progress was made in the expansion of our franchise area in Alzheimer's disease, with the initiation of two Alzheimer's disease clinical trials and a collaboration with Mayo Clinic on follow-up Alzheimer's drug candidates."
Research and development expense for fiscal 2003 was $47.6 million compared with $36.3 million for the same period in the prior year. The increased investment in R&D was due primarily to advancing our therapeutic development programs in Alzheimer's disease and prostate cancer. Our human genetics research team had a very productive 2003 as well, discovering several exciting drug targets and potential predictive medicine products. These included the HOB1 obesity gene, the first gene known to have a significant direct tie to common human obesity. Myriad has since identified several small-molecule drug candidates that are active against the HOB1 assay. Our discoveries also included the DEP1 depression gene. The DEP1 gene has been licensed to Abbott Laboratories for drug development and may be the basis of an entirely new class of anti-depression drugs. DEP1 does not inhibit the uptake or metabolism of serotonin, as do the current class of drugs known as selective serotonin reuptake inhibitors or SSRIs. Thus, the mechanism of action of DEP1, in leading to depression, is a new drug target and distinct from that of previous therapeutic approaches.
Selling, general and administrative expenses grew in line with revenues to $31.5 million from $25.5 million for the previous fiscal year.
Conference Call and Webcast
A conference call with Company management will be held today at 10:00am Eastern Daylight Time with investors and media to discuss these results and recent events at the Company. Between 9:45am and 10:00am, the dial-in number for domestic callers is (800) 223-9488. International callers may dial (785) 832-2041. An archived replay of the call will be available for 7 days by dialing (877) 856-8966 or (402) 220-1610. The conference call will also be simulcast over the Web and can be accessed through: 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 promising therapeutic products that address large potential markets. Myriad's news and other information are available on the Company's Web site at 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 potential efficacy of drug candidates potentially arising from our discovered drug targets, such as HOB1 and DEP1. 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 Annual Report on Form 10-K for the fiscal year ended June 30, 2002. All information in this press release is as of August 26, 2003, and Myriad undertakes no duty to update this information unless required by law.
MYRIADGENETICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per
share amounts)
Three Months Ended Twelve Months Ended
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
REVENUES:
Predictive medicine
revenue $9,354 $7,680 $34,683 $26,821
Research revenue 5,971 6,432 27,822 $27,015
Related party
research revenue 380 -- 1,816 --
Total research revenue 6,351 6,432 29,638 27,015
Total revenues 15,705 14,112 64,321 53,836
COSTS AND EXPENSES:
Predictive medicine cost
of revenue 3,277 3,031 12,553 10,717
Research and development
expense 13,372 10,681 47,589 36,295
Selling, general and
administrative expense 6,729 7,868 31,525 25,484
Total costs and expenses 23,378 21,580 91,667 72,496
Operating loss (7,673) (7,468) (27,346) (18,660)
Other income (expense):
Interest income 631 959 2,900 5,385
Other 3 (214) 38 (214)
Loss before taxes (7,039) (6,723) (24,408) (13,489)
Income taxes 42 125 417 500
Net loss ($7,081) ($6,848) ($24,825) ($13,989)
Basic and diluted loss
per share ($0.26) ($0.29) ($0.96) ($0.59)
Basic and diluted weighted
average shares
outstanding 27,041 23,791 25,730 23,660
Condensed Consolidated Balance Sheets
(In thousands) June 30, June 30,
2003 2002
Cash, cash equivalents, and
marketable investment securities $126,292 $124,243
Receivables, net 22,308 7,453
Prepaid expenses 7,740 4,827
Equipment and leasehold improvements, net 18,682 15,433
Other assets 7,801 5,434
Total assets $182,823 $157,390
Current liabilities $16,379 $14,091
Deferred revenue 2,958 14,430
Stockholders' equity 163,486 128,869
Total liabilities and
stockholders' equity $182,823 $157,390
Source: Myriad Genetics, Inc.
Contact: William A. Hockett, Vice President of Corporate Communications of Myriad Genetics, Inc., +1-801-584-3600, bhockett@myriad.com
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