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Myriad Reports 37 Percent Revenue Growth for Q2

NEW YORK (GenomeWeb News) – Myriad Genetics reported on Tuesday a 37 percent increase in fiscal year 2014 second quarter revenues compared to the year-ago period.

For the three months ended Dec. 31, 2013, the company brought in total revenues of $204.1 million, up from $149.1 million in the second quarter of 2013, and above analysts' consensus estimate of $176 million.

Myriad's molecular diagnostic revenue rose to $196.2 million, marking a 39 percent increase from $140.7 million in Q2 2013. The firm's flagship BRACAnalysis test contributed $141.2 million, 28 percent year-over-year increase. Revenue from BART was $24.7 million, a 57 percent increase, while the Colaris and Colaris AP franchise contributed $15.6 million, a 29 percent increase.

The Myriad myRisk Hereditary Cancer NGS test, launched in September, had revenues of $11.5 million. The company's other tests brought in $3.2 million, up 25 percent year over year.

Given the positive reception of the MyRisk test from doctors in the US, Myriad has commenced an expanded launch of the assay to grow adoption of the diagnostic. The company plans to completely transition its hereditary cancer testing franchise from single-gene tests to the 25-gene MyRisk panel by the summer of 2015.

Meanwhile, Myriad's companion diagnostic services generated revenues during the fiscal second quarter of $7.9 million, a 7 percent decrease from $8.5 million in Q2 2013.

Myriad is currently developing BRACAnalysis as a companion test for a number of investigational PARP inhibitors, including AstraZeneca's olaparib. The test developer has submitted an investigational device exemption application with the US Food and Drug Administration to use BRACAnalysis in a Phase III olaparib trial.

Estimating that AstraZeneca will garner marketing approval for olaparib from the European Medicines Agency in the next 12 months, Myriad CEO Peter Meldrum announced during a call with investors that the firm will launch a tumor BRCA mutation test for the European market "that will detect 30 percent more responders to olaparib than conventional germline BRCA testing" using BRACAnalysis.

During the second quarter, Myriad launched the myPlan Lung Cancer test, which helps physicians gauge a lung cancer patient's risk of death in five years. Also in the quarter, the firm launched the myPath Melanoma test, which helps doctors differentiate benign and malignant skin lesions.

"We're seeing meaningful progress in the international market," Meldrum said, noting that revenues from its testing business outside the US increased by 130 percent over the prior year. The company is planning to launch the myRisk and myPath Melanoma tests in Europe this quarter.

Myriad posted Q2 net income of $50.4 million, or $.66 per share, compared to $35.0 million, or $.42 per share, in the fiscal second quarter of 2013. It beat analysts' consensus estimate of $.46.

The company's R&D expenses increased 21 percent to $17.1 million from $14.1 million, and the company had SG&A expenses of $77.8 million, up 31 percent from $59.6 million in Q2 2013.

Myriad ended the quarter with $488.8 million in cash, cash equivalents and marketable investment.

The company separately announced Tuesday that it will acquire rheumatoid arthritis-focused diagnostics firm Crescendo Biosciences for $270 million in cash. The transaction is slated to close by the end of fiscal year 2014.

Myriad said that based on its expected growth in core markets and a contribution from Crescendo, it has updated its financial guidance for the fiscal year ending June 30. It said that it now expects revenues to be in a range of $740 million to $750 million, up from a previous range of $700 million to $715 million. It expects EPS to be between $2.09 and $2.12 compared to an earlier forecast of between $1.92 and $1.97.

Investors reacted favorably to the results and forecast, sending Myriad's shares up more than 9 percent to $29.72 in Wednesday morning trade on the Nasdaq.