NEW YORK (GenomeWeb News) – Myriad Genetics reported after the close of the market on Monday that its third-quarter revenues increased 42 percent, driven by a sharp uptick in molecular diagnostics sales.
The Salt Lake City-based firm generated revenues of $87.5 million for the three-month period ended Mar. 31, compared to $61.8 million for the first quarter of 2008. Its molecular diagnostics sales were $86.5 million, up from $59 million in Q1 2008, while its research and other revenue fell to just under $1 million from $2.7 million the year before.
Myriad credited the growth to its sales and marketing initiatives including the expansion of its women's health sales force, and the continuation of its DTC marketing campaign, "which the company believes has resulted in improved physician acceptance and adoption of its molecular diagnostics products," it said in a statement.
Myriad's net income for Q1 was $25.3 million, or $.25 per share, compared to a net loss of $4.6 million, or $.05 per share, the year before.
Its R&D costs dropped sharply to $17.9 million from $31.2 million, due to the discontinuation of its Alzheimer's disease program in June 2008. The firm's SG&A spending increased 20 percent to $36.1 million from $30.2 million.
Myriad finished the quarter with $535 million in cash, cash equivalents, and marketable investment securities.
The firm is in the process of spinning off its drug research and development business into a new firm called Myriad Pharmaceuticals, which will be publicly traded. It expects to complete that spin off by the end of the second quarter. Myriad Genetics' shareholders will receive one share of Myriad Pharmaceuticals stock for every four shares of Myriad Genetics common stock owned.
In early Tuesday trade on the Nasdaq, Myriad's shares were down 15 percent at $32.12. Analysts said the sell off was due to investors looking for greater revenue growth from the firm's molecular diagnostics products.