For the second fiscal quarter of 2006, total revenues grew to a record $27.3 million from $19.6 million in the same quarter of fiscal 2005. The net loss was reduced to $8.0 million from $10.0 million in the second quarter last year and the net loss per share was $0.22, compared with $0.33 in the same quarter of fiscal 2005.
Predictive medicine revenues increased $5.9 million from $17.5 million for the same quarter last year. Compared with the first quarter of fiscal 2006, predictive medicine revenues were up 9%. This significant increase in predictive medicine revenues reflects strong customer demand for Myriad's predictive medicine products due in part, we believe, to the demonstrated clinical utility of the test and the value to patients of using Myriad's BRACAnalysis®, COLARIS®, and MELARIS® predictive medicine products. For the first six months of this year, predictive medicine revenues were $44.9 million, an increase of 41% from $32.0 million during the same period last year.
Research revenues increased 87% from $2.1 million for the second quarter of fiscal 2005 to $3.9 million for the second quarter of fiscal 2006. Despite this increase, the Company continues to reduce the emphasis on external research collaborations in favor of its own in-house drug development programs. Total revenues in the second quarter of 2006 increased to $27.3 million, from $19.6 million for the same period of fiscal 2005, an increase of 39% year-to-year. Compared with the first quarter of fiscal 2006, total revenues increased by $2.2 million, or 9%.
Net loss for the second quarter of fiscal 2006 was $8.0 million or $0.22 per share, compared with $10.0 million, or $0.33 per share, for the same quarter of fiscal 2005. This approximately $2.0 million, or 20% reduction in net loss is in large part the result of an increased contribution from our profitable predictive medicine business. As of December 31, 2005, Myriad had approximately $235 million in cash, cash equivalents and marketable investment securities. The Company has no debt or convertible securities.
"We are pleased to report the continued growth in our predictive medicine business and the excellent progress in advancing our drug candidates through the regulatory process," commented Peter Meldrum, President and CEO of Myriad Genetics, Inc. "Second quarter was particularly strong, with record revenues, strong profit margins and a significant reduction in our net loss."
Research and development expense was $19.0 million for the quarter, compared to $14.5 million for research and development in the same quarter of the prior year. This 31% increase in research and development expense includes the ongoing investment necessary to the continuation of six clinical trials and the advancement of several promising late-stage preclinical drug compounds toward IND submission. The human clinical trials consist of a Phase 3 study of Flurizan in Alzheimer's disease, a 12-month follow-on study to the Phase 2 Alzheimer's disease trial, a Phase 2b trial of MPC-7869 in prostate cancer, two Phase 1 trials with MPC-6827 in metastatic cancer and independently in brain cancer and a Phase 1 study of MPC-2130 in blood cancers and advanced metastatic tumors.
An update on several of Myriad's clinical trials, including their current status as well as any recent or anticipated protocol amendments, will be provided by Company management during the conference call detailed below.
Myriad management will host a conference call today at 10:00 am Eastern time to discuss the company's results and other recent events. The dial-in number for the conference call will be (888) 589-2820, or (706) 634-2173. Callers will be required to enter the conference identification number, 4574985. 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 through a link on Myriad's home page at 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.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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 statements include, but are not limited to increased demand for the Company's predictive medicine products; the clinical utility of the Company's predictive medicine tests and the value to patients of using the tests; strong growth in product revenues; and continued development of, and increased investment in, the Company's therapeutic products in clinical trials and the expenses associated therewith. Factors that could cause actual results to differ materially from those set forth in or implied by the forward-looking statements include: uncertainties as to the extent of future government regulation of Myriad Genetics' business; risks and 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; the risk that the Company will not be able to sustain revenue growth for its predictive medicine business and products, and risks associated with preclinical development activities that could cause delays in, or even prevent, planned IND applications. These and other factors are discussed in the Company's filings with the Securities and Exchange Commission, including our Current Report on Form 8K filed on October 28, 2005. All information in this press release is as of February 7, 2006, and Myriad undertakes no duty to update this information unless required by law.
- Financial Charts Follow -
MYRIAD GENETICS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except Three Months Ended Six Months Ended per share amounts) Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2005 2004 2005 2004 REVENUES:
Predictive medicine revenue $23,392 $17,535 $44,921 $31,964 Research revenue 3,938 2,104 7,524 $4,385 Total revenues 27,330 19,639 52,445 36,349
COSTS AND EXPENSES:
Predictive medicine cost of revenue 6,272 5,131 12,075 9,370 Research and development expense 19,030 14,546 37,495 27,678 Selling, general and administrative expense 11,628 10,638 22,528 20,594 Total costs and expenses 36,930 30,315 72,098 57,642
Operating loss (9,600) (10,676) (19,653) (21,293)
Other income (expense): Interest income 1,649 687 2,460 1,319 Other (1) (59) (1) (66) 1,648 628 2,459 1,253
Net loss ($7,952) ($10,048) ($17,194) ($20,040)
Basic and diluted loss per share ($0.22) ($0.33) ($0.52) ($0.65)
Basic and diluted weighted average shares outstanding 35,547 30,682 33,217 30,666
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands) Dec. 31, 2005 Jun. 30, 2005 Cash, cash equivalents, and marketable investment securities $235,079 $113,843 Trade receivables, net 18,979 17,236 Other receivables 1,014 1,145 Prepaid expenses 6,737 3,331 Equipment and leasehold improvements, net 18,658 18,466 Other assets 4,762 4,937 Total assets $285,229 $158,958
Accounts payable and accrued liabilities $22,291 $22,033 Deferred revenue 1,292 1,252 Stockholders' equity 261,646 135,673 Total liabilities and stockholders' equity $285,229 $158,958