Myriad Genetics Reports Third Quarter Fiscal Year 2013 Results
"I am pleased with not only the solid revenue growth across all of our business segments during the third quarter but also the Company's ability to drive financial leverage as we continue to invest in our extensive product pipeline," said
Third Fiscal Quarter 2013 Results
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Molecular diagnostic testing revenue in the third fiscal quarter equaled
$148.4 million , an increase of 20 percent compared to the prior year period. Revenue from the Oncology segment equaled$95.8 million , an increase of 13 percent over the third fiscal quarter of 2012.Women's Health revenue totaled$52.6 million , an increase of 35 percent over the same period in the prior year.
- Revenue from the BRACAnalysis® test, which represented 74 percent of total revenue in the third quarter, was
$115.4 million , a 9 percent increase over the same period of the prior year.- Revenue from the COLARIS® and COLARIS AP® tests were
$13.3 million , an increase of 19 percent compared to the third fiscal quarter of the prior year, and representing 9 percent of total revenue in the third quarter.- Revenue from the BART™ test, was
$16.9 million , a 392% increase over the same period of the prior year and representing 11 percent of total revenue in the third quarter.- Revenue from Myriad's other molecular diagnostic tests were
$2.8 million which represented approximately 2 percent of total revenue in the third fiscal quarter.
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Companion diagnostic service revenue in the third fiscal quarter equaled
$8.1 million , a 25 percent increase over the same period in the prior fiscal year. Companion diagnostic revenue represented 5 percent of total revenue and continued to benefit in the third fiscal quarter from the diabetes collaboration with Sanofi. -
Operating income was
$57.9 million , an increase of 26 percent from the prior year period. Operating margin was 37 percent of revenues compared to 35.5 percent in the third quarter of the prior year. The improvement in operating income was primarily due to the operating leverage from both cost of revenue and general and administrative expenses and was achieved with the meaningful investments the Company continues to make in sales and marketing expansion and the build out of the Company's international infrastructure. -
Net income for the third fiscal quarter was
$37.9 million , an increase of 28 percent over the$29.6 million reported in same period of the prior year. -
During the quarter the Company repurchased 1.7 million shares or
$44.8 million of its common stock under its previously announced stock repurchase program. Third fiscal quarter diluted weighted average shares outstanding were 82.4 million as compared to 86.5 million in the same period of the prior year. -
The Company ended the quarter with
$462.3 million in cash, cash equivalents and marketable investment securities as compared to$466.7 million atMarch 31, 2012 .
Year-to-Date Performance
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Total revenue for the first nine months of fiscal 2013 was
$439.1 million , an increase of 21 percent over the$363.0 million reported for the first nine months of fiscal 2012. -
Operating income for the first nine months of fiscal 2013 was
$162.1 million , an increase of 22 percent over the$133.0 million reported for the same period of the prior year. -
Net income for the first nine months of fiscal 2013 equaled
$103.1 million , an increase of 24 percent over the$83.0 million in the first nine months of the prior year. -
In the first nine months of fiscal 2013, diluted earnings per share increased 29 percent to
$1.23 compared to$0.96 for the same period in the prior year. -
During the first nine months of the 2013 fiscal year, the Company repurchased 4.8 million shares of common stock for
$124.7 million .
Business Highlights during the Third Quarter of Fiscal 2013
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Myriad received a worldwide exclusive license to the MITF gene from the Institute Gustave Roussy in
Paris for use in predicting hereditary risk for melanoma and renal cell carcinoma. In a study published in theDecember 2011 issue of Nature, individuals identified with a mutation of the MITF gene had a 14-fold increase in lifetime risk for melanoma and renal cell carcinoma. The MITF gene was acquired for future inclusion in the Company's hereditary cancer panel test. -
BRACAnalysis was classified as a preventive service under the Affordable Care Act ensuring that going forward, asymptomatic women with a qualifying family history can be tested with no patient out-of-pocket cost for all non-grandfathered, private, insurance plans. Already over half of all private insurance plans in
the United States have lost their grandfathered status. -
The fourth clinical validation study for PROLARIS™ was published in the
Journal of Clinical Oncology . The study found that PROLARIS correctly stratified 413 men who had undergone radical prostatectomy with 100% of patients with a low risk PROLARIS score having no recurrence of their prostate cancer compared to 50% in the high risk cohort seeing their prostate cancer aggressively return. - The Company announced a commercial partnership with its new homologous recombination deficiency test in patients being treated with PharmaMar's PM1183 drug candidate.
Fiscal Year 2013 Outlook
The Company is raising its revenue expectations for fiscal year 2013 financial performance. Total revenue is now expected to be in a range of
Share Repurchase Program
Between
Conference Call and Webcast
A conference call will be held on
About
Myriad, the Myriad logo, BART, 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 ability to drive financial leverage and continued investment in its extensive product pipeline; the Company's optimism regarding the future outlook and expansion of its core markets, diversification of business through new product introductions, and international expansion; continued meaningful investments in sales and marketing expansion and the build out of the Company's international infrastructure; the inclusion of the MITF gene in the Company's hereditary cancer panel test; 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 management's
present 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 described in the forward-looking statements. These risks 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; risks related to changes in the governmental or private insurers reimbursement levels for our tests; 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
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CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) | ||||
(in thousands, except per share amounts) | Three Months Ended | Nine Months Ended | ||
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Molecular diagnostic testing |
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Companion diagnostic services | 8,088 | 6,465 | 22,746 | 18,149 |
Total revenue | 156,472 | 129,777 | 439,050 | 363,040 |
Costs and expenses: | ||||
Cost of molecular diagnostic testing | 16,462 | 13,465 | 45,960 | 37,580 |
Cost of companion diagnostic services | 3,872 | 3,763 | 11,585 | 10,127 |
Research and development expense | 13,618 | 11,753 | 39,125 | 30,502 |
Selling, general, and administrative expense | 64,602 | 54,700 | 180,294 | 151,799 |
Total costs and expenses | 98,554 | 83,681 | 276,964 | 230,008 |
Operating income | 57,918 | 46,096 | 162,086 | 133,032 |
Other income (expense): | ||||
Interest income | 1,434 | 1,379 | 4,187 | 3,235 |
Other | (111) | 6 | (224) | (199) |
Total other income | 1,323 | 1,385 | 3,963 | 3,036 |
Income before income taxes | 59,241 | 47,481 | 166,049 | 136,068 |
Income tax provision (benefit) | 21,349 | 17,866 | 62,984 | 53,059 |
Net income |
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Earnings per share: | ||||
Basic |
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Diluted |
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Weighted average shares outstanding | ||||
Basic | 80,304 | 84,403 | 81,138 | 84,715 |
Diluted | 82,363 | 86,462 | 83,463 | 86,537 |
Condensed Consolidated Balance Sheets (Unaudited) | ||||
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(In thousands) | ||||
Cash, cash equivalents, and marketable investment securities |
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Trade receivables, net | 93,172 | 60,441 | ||
Other receivables | 2,187 | 2,660 | ||
Inventory | 7,136 | 11,574 | ||
Prepaid expenses | 1,541 | 1,713 | ||
Equipment and leasehold improvements, net | 26,875 | 24,231 | ||
Note receivable | 21,000 | 19,000 | ||
Other assets | 8,000 | 8,000 | ||
Intangibles, net | 13,525 | 15,722 | ||
Goodwill | 56,850 | 56,850 | ||
Deferred tax assets | 36,465 | 36,220 | ||
Total assets |
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Accounts payable and accrued liabilities |
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Deferred revenue | 3,031 | 2,054 | ||
Uncertain tax benefits | 10,478 | 10,008 | ||
Stockholders' equity | 664,929 | 635,660 | ||
Total liabilities and stockholders' equity |
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CONTACT: Media Contact:Source:Ron Rogers (801) 584-3065 rrogers@myriad.com Investor Contact:Scott Gleason (801) 584-1143 sgleason@myriad.com
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