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Myriad Genetics Posts 22 Percent Revenue Growth in Q2

NEW YORK (GenomeWeb News) – Myriad Genetics reported after the close of the market Tuesday that its second-quarter 2012 revenues increased 22 percent year over year with molecular diagnostic revenues up 17 percent.

The Salt Lake City-based firm had total revenues of $122.8 million for the three-month period ended Dec. 31, 2011, compared to $100.4 million for the second quarter of 2011. It beat Wall Street's consensus estimate for revenues of $115.3 million.

Its molecular diagnostics sales were $117.6 million, while companion diagnostics services generated $5.2 million in revenues. The companion diagnostics services were added in 2011 through the $80 million acquisition of Rules-Based Medicine.

Sales for the firm's BRACAnalysis test were $101.4 million for the quarter, up 14 percent year over year. Its Colaris and Colaris AP tests had revenue growth of 56 percent to $10.9 million, while other molecular diagnostic tests returned $5.3 million in revenues, an increase of 24 percent year over year.

Myriad posted net income of $28.3 million, or $.33 per share, up from $24.2 million, or $.26 per share. It beat analysts' estimates for $.31 per share.

The firm's R&D spending jumped 67 percent to $10.2 million from $6.1 million, and its SG&A expenses increased 17 percent to $51 million from $43.7 million.

Myriad finished the quarter with $428.3 million in cash, cash equivalents, and marketable investment securities.

Myriad President and CEO Peter Meldrum said on a conference call following the release of the results that one of the firm's primary directives is to grow its international sales, As previously reported by GenomeWeb Daily News, Myriad opened a new European headquarters in Zurch, Switzerland in 2011 and has planned for sales operations there and in Germany, France, Italy, and Spain.

He said on the call that the firm opened its laboratory in Munich, Germany at the beginning of 2012. The lab has a capacity to generate $50 million a year in revenues, which the company hopes to achieve within five years, said Meldrum.

In addition, he noted that Myriad has received reimbursement in all five of those targeted European markets for three of its products — BRACAnalysis, Colaris, and Colaris AP.

"In addition, we are initiating clinical studies in numerous European countries to demonstrate the clinical utility of our Prolaris product," Meldrum added. "We feel these trials will help accelerate demand for Myriad's prostate cancer prognostic test in Europe."

Prolaris is a 46-gene expression assay that has been developed to distinguish indolent forms of prostate cancer from more aggressive forms. Thus far, Myriad has completed four clinical studies on the test and has three more underway, said Marc Capone, president of Myriad Genetics Laboratories.

Capone said that interest in the Prolaris test is being driven by three factors: a recommendation that PSA screening be suspended until there is a test that can distinguish between indolent forms and aggressive forms of prostate cancer; a digital pathology test for prostate cancer that has been removed from the market, which had an order run rate of more than 10,000 samples per year; and recent publications that have highlighted the clinical and economic benefits of adjuvant radiation post-prostatectomy for aggressive prostate cancer.

As a result, Myriad has decided to accelerate commercialization of the Prolaris test in February among payers and physicians. As part of this effort, the company will double its urology sales team to around 20 field-based personnel, said Capone.

Myriad increased its revenue guidance for 2012 to a range of between $465 million and $475 million from a previous range of between $445 million and $465 million. Its EPS guidance also increased to a range of between $1.24 and $1.28 from $1.20 and $1.25.

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