Myriad Genetics Reports Fourth Quarter and Fiscal Year 2012 Results
"Myriad achieved record revenue and operating profits last year," said
Fourth Fiscal Quarter 2012 Results
Molecular diagnostic testing revenue in the fourth fiscal quarter equaled
$127.5 million, an increase of 21 percent compared to the prior year period. Revenue from the Oncology segment equaled $87.0 million, an increase of 16 percent over the fourth fiscal quarter of 2011. Women's Healthrevenue totaled $40.5 million, an increase of 32 percent over the same period in the prior year.
- Revenue from the BRACAnalysis® test, which represented 81.7 percent of total revenue in the fourth quarter, was
$108.7 million, a 17 percent increase over the same period of the prior year.
- Revenue from the COLARIS® and COLARIS AP® tests, which represented 8.7 percent of total revenue during the quarter, was
$11.5 million, an increase of 51 percent compared to the same fiscal quarter of the prior year.
- Myriad's other molecular diagnostic tests contributed
$7.3 millionto fourth quarter revenue, or 5.5 percent of total revenue, an increase of 47 percent over the same period in the prior year.
Companion diagnostic service revenue in the fourth fiscal quarter equaled
$5.5 millionand represented 4.1 percent of total company revenue. Revenue in the fourth fiscal quarter of 2011 equaled $2.0 millionas the Company acquired this business in May 2011.
Operating income was
$47.3 million, an increase of 13 percent from the prior year period. This level of operating income included the impact of increased investment in research and development to support existing molecular diagnostic tests and future products, as well as investments for international expansion and Myriad RBM.
Net income for the fourth fiscal quarter was
$29.1 million, an increase of 12 percent over the $26.0 millionreported in same period of the prior year.
During the quarter the Company repurchased 2.6 million shares or
$61.0 millionof its common stock, resulting in an average price of $23.70, under its previously announced stock repurchase program. Fourth fiscal quarter diluted weighted average shares outstanding were 86.3 million as compared to 88.1 million in the same period of the prior year.
- Days sales outstanding for Myriad's accounts receivable improved to 41 days, compared with 43 days in the same period of the prior year and bad debt expense was 5.5 percent of total revenue.
Fiscal Year 2012 Results
Fiscal 2012 molecular diagnostic testing revenue equaled
$472.4 million, an increase of 18 percent compared to the prior year. Revenue from the Oncology segment equaled $327.6 million, an increase of 16 percent over fiscal 2011. Women's Health revenue totaled $144.8 million, an increase of 24 percent over the prior year.
- Revenue from the BRACAnalysis test was
$405.5 million, an increase of 15 percent over the prior year.
- Revenue from the COLARIS and COLARIS AP tests was
$43.3 million, an increase of 48 percent compared to the prior year.
- Myriad's other molecular diagnostic tests contributed
$23.6 millionto fiscal 2012 revenue, an increase of 32 percent over the prior year.
Companion diagnostic service revenue in the fiscal 2012 equaled
$23.6 million. Revenue in fiscal 2011 equaled $2.0 millionas the Company acquired this business in May 2011.
Operating income was
$180.3 million, an increase of 14 percent from the prior year. Investment in research and development increased 54 percent versus the prior year and investments in the Company's international expansion and Myriad RBMlead to a 23 percent increase in sales, general and administrative expense.
Net income for the fiscal year was
$112.2 million, an increase of 11 percent over the $100.7 millionreported in the prior year.
During the fiscal year the Company repurchased 5.7 million shares or
$128.5 millionof its common stock, resulting in an average price of $22.59, under its previously announced stock repurchase program. Diluted weighted average shares outstanding were 86.5 million as compared to 91.7 million in the prior year.
The Company ended the fiscal year with
$454.2 millionin cash, cash equivalents and marketable investment securities. The Company has no debt or other restrictions on its cash.
Business Highlights of Fiscal Year 2012
Entered into a loan and acquisition option agreement with Crescendo Bioscience, under which Myriad made a
$25 millionstrategic debt investment in Crescendo to secure an exclusive, three-year option to acquire the company. The potential acquisition of Crescendo Bioscience, if completed, would expand the Company's portfolio of molecular diagnostic products to include products for autoimmune disorders, such as rheumatoid arthritis.
Established subsidiaries and sales offices in
Germany, France, Spain, Italyand Switzerland, as well as laboratory operations in Germany.
Published a study in the
British Journal of Cancerwhich highlighted the ability of the Company's Prolaris® test to significantly predict prostate cancer aggressiveness and consequent death from the disease.
Presented a study at the 27th Annual
EAU Congress, and the 2012 Genitourinary Cancers Symposium, which concluded that the Company's Prolaris test demonstrated significant and unique prognostic ability in men who had undergone radical prostatectomy and accurately predicted their elevated risk for prostate cancer recurrence.
- Presented a study at the 2012 ASCO Annual Meeting that demonstrated that the Company's lung cancer prognostic test significantly predicted cancer-specific death in early stage adenocarcinoma lung cancer patients.
- Acquired an exclusive license to intellectual property covering the analysis of the RAD51C gene for risk of hereditary breast and ovarian cancer.
Entered into companion diagnostic agreements with
Cephalon Inc., a subsidiary of Teva Pharmaceutical Industries Ltd., and Pharma Mar to conduct companion diagnostic testing for their clinical trials.
- Presented a study at the San Antonio Breast Cancer Symposium which demonstrated that the BRACAnalysis test is a cost-effective intervention for a much larger group of unaffected women than current guidelines would suggest.
Fiscal Year 2013 Outlook
The Company expects fiscal year 2013 total revenue of
Conference Call and Webcast
A conference call will be held on
Myriad, the Myriad logo, BRACAnalysis, Colaris, Colaris AP, Melaris, TheraGuide, Prezeon, OnDose, Panexia and Prolaris are trademarks or registered trademarks of
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the Company's commitment to build upon its 2012's performance in 2013; the Company's commitment to execute and achieve its strategic directives; the Company's fiscal year 2013 financial guidance under the caption "Fiscal Year 2013 Outlook;" and the Company's strategic directives under the caption "About Myriad Genetics". These "forward-looking statements" are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by forward-looking statements. These risks and uncertainties include, but are not limited to: the risk that sales and profit margins of our existing
molecular diagnostic tests and companion diagnostic services may decline or will not continue to increase at historical rates; the risk that we may be unable to develop or achieve commercial success for additional molecular diagnostic tests and companion diagnostic services in a timely manner, or at all; the risk that we may not successfully develop new markets for our molecular diagnostic tests and companion diagnostic services, including our ability to successfully generate revenue outside
|CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited)|
|(in thousands, except per share amounts)||Three Months Ended||Twelve Months Ended|
|Molecular diagnostic testing||
|Companion diagnostic services||5,466||2,038||23,615||2,038|
|Costs and expenses:|
|Cost of molecular diagnostic testing||13,872||11,447||51,452||45,637|
|Cost of companion diagnostic services||3,081||1,077||13,207||1,077|
|Research and development expense||12,144||9,230||42,645||27,751|
|Selling, general, and administrative expense||56,583||43,881||208,383||169,841|
|Total costs and expenses||85,680||65,635||315,687||244,306|
|Other income (expense):|
|Total other income||1,186||330||4,222||1,873|
|Income before income taxes||48,471||42,107||184,540||159,651|
|Income tax provision (benefit)||19,330||16,066||72,389||58,941|
|Earnings per share:|
||$ 1.30||$ 1.10|
|Weighted average shares outstanding|
|Condensed Consolidated Balance Sheets (Unaudited)|
|Cash, cash equivalents, and marketable investment securities||
|Trade receivables, net||60,441||50,272|
|Equipment and leasehold improvements, net||24,231||23,080|
|Deferred tax assets||36,220||35,653|
|Accounts payable and accrued liabilities||
|Uncertain tax benefits||10,008||9,648|
|Total liabilities and stockholders' equity||
Rebecca ChambersDirector, Investor Relations and Corporate Communications (801) 584-1143 email@example.com
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