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Myriad's Q4 Revenues Rise 9 Percent; 2010 Revenues up 11 Percent

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Myriad Genetics said Tuesday after the close of market that revenues for its fiscal fourth quarter rose 9 percent, with its women's health revenues bouncing 16 percent year over year.

The company also said that revenues rose 11 percent for full-year 2010 from full-year 2009.

Total revenues for the three months ended June 30 climbed to $93.9 million, compared to $86.1 million a year ago. In addition to the increase in women's health, the company's oncology health revenues increased 7 percent to $67.2 million from $63 million in Q4 2009.

Myridad's BRACAnalysis test for the analysis of BRCA1 and BRCA2 genes accounted for $82.5 million in revenues, the company said, and its Colaris and Colaris AP products for the analysis of MLH1, MSH6, APC, and MYH genes to assess a patient's risk for colorectal or uterine cancer accounted for $7.3 million in revenues during the quarter.

The firm's other products generated the remaining $4.1 million.

Revenues for the quarter were slightly above the consensus Wall Street estimate of $93.5 million.

Myriad had a profit of $53.3 million, or $0.54 per share, a 125 percent increase from $23.7 million, $0.24 per share, for Q4 2009 and beating analyst estimates of $0.33. The 2009 earnings were hit by $13.1 million loss from discontinued operations.

The firm spent about $5.3 million on R&D during the quarter, compared to $4.4 million in Q4 2009. SG&A costs rose to $39.8 million from $36 million a year ago.

For full-year fiscal 2010, Myriad's revenues were $362.6 million, an 11 percent jump from $326.5 million. Analyst estimates were for about $362.2 million.

During a conference call following the release of the company's earnings, an analyst asked about the drop-off in revenue growth during the year from a year ago when revenues bounced 47 percent from FY 2008. Myriad CEO Peter Meldrum responded that the slowdown was due to a number of factors including the general economic softness, fewer physician visits, and looser compliance by women with preventive measures such as pap smears and mammograms.

"We have not seen, as the [economic] recovery has struggled, a significant rebound in physician office visits," Meldrum said.

Net income for the year was $152.3 million, $1.54 per share, up 80 percent from $84.6 million, $0.86, in FY 2009, beating Wall Street estimates of $1.32 per share. Myriad reported a $51.6 million loss from discontinued operations in fiscal 2009.

The company did not provide EPS on an adjusted basis.

The firm spent $21.9 million on R&D during the year, up from $17.9 million a year ago, and $161.4 million on SG&A, up from $138.9 million a year ago.

As of June 30, the company had $488.4 million in cash, cash equivalents, and marketable investment securities, it said.

The pivotal event during the year was a decision by the US District Court for the Southern District of New York in March that declared Myriad's BRCA gene patents invalid. Last month, the company and the University of Utah Research Foundation, which licensed the genes to Myriad, appealed the decision.

Company officials did not address either the decision or the appeal during the conference call on Tuesday.

In early Wednesday trading on the Nasdaq, shares of Myriad were down about 4 percent at $14.99.

On the conference call, Mark Capone, Myriad's president, said that in molecular diagnostics for full-year 2010, its oncology business grew 7 percent year over year, while its women's health product sales increased 22 percent.

Meldrum added that the company is "aggressively" exploring M&A opportunities in the molecular diagnostics space that would expand the company's product offerings, "leverage our existing sales and marketing strengths, and create other operational synergies."

Myriad sees "some good opportunities," he added, including companies that are undervalued.

In May, the firm said that it would embark on a $100 million stock repurchasing program. On Tuesday, Jim Evans, Myriad's CFO, said that the company had acquired about $71 million of its stock under this program.

For full-year 2011, Myriad is forecasting total revenues of between $380 million and $400 million, and EPS of between $0.95 and $1. Based on the midpoint of the range, the guidance would represent revenue growth of 8 percent, Meldrum said.

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