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Myriad Genetics Posts 27 Percent Revenue Growth for Q3

NEW YORK (GenomeWeb News) – Myriad Genetics reported after the close of the market Tuesday that its third-quarter 2012 revenues jumped 27 percent.

The Salt Lake City-based molecular diagnostics firm reported total revenues of $129.8 million for the three-month period ended March 31, up from $102.4 million for Q3 2011. It easily beat Wall Street's consensus estimate for revenues of $119.3 million.

Its molecular diagnostics sales were $123.3 million, a 20 percent increase over the $102.4 million recorded for the third quarter of 2011. The most recent quarter included revenue of $6.5 million from its companion diagnostic services, compared to no such revenues for Q3 last year. The companion diagnostics services were added in 2011 through the $80 million acquisition of Rules-Based Medicine.

Sales for its oncology segment grew 19 percent year over year to 486.6 million, and sales for women's health products jumped 25 percent to $36.7 million.

Among Myriad's products, its BRACAnalysis test brought in revenue of $105.9 million, a 17 percent increase, while sales of Colaris increased 51 percent to $11.2 million.

On a conference call following the release of the results, Myriad President and CEO Peter Meldrum said the BRACAnalysis oncology market is 45 percent penetrated, and the annual market opportunity for the test is more than $1 billion. "Our efforts to grow the oncology market for BRACAnalysis [included] the development of the ovarian cancer, carcinoma in situ, and triple negative breast cancer indications," said Meldrum.

Myriad posted a profit of $29.6 million, or $.34 per share, compared to $27.9 million, or $.31 per share, for Q3 2011. Analysts had expected EPS of $.32.

The firm's R&D spending rose 76 percent to $11.8 million from $6.7 million, and its SG&A expenses climbed 28 percent to $54.7 million from $42.8 million.

Myriad finished the quarter with $466.7 million in cash, cash equivalents, and marketable investment securities.

The company raised its revenue guidance to a range between $492 million and $496 million, up from its original fiscal 2012 guidance of $445 million to $465 million. It expects EPS between $1.29 and $1.31, above the initial guidance of $1.20 to $1.25.

On the call, Myriad officials announced three strategic directives for growing the business. The company is focused on growing its existing tests and markets, growing its business internationally, and launching new products including companion diagnostic tests that help guide treatments.

Myriad's plan to grow its business in Europe is "ahead of schedule," and the company is on track to meet its guidance of $59 million in international revenues by fiscal year 2016.

The company also plans to launch new tests in oncology, women's health, urology, dermatology, autoimmune diseases, and neuroscience. Myriad's pipeline currently includes 13 candidate tests.

One of the tests under development is a melanoma test to determine whether a skin biopsy is benign or malignant that was in-licensed from Melanoma Diagnostics. Myriad initially planned for a commercial launch later this year as an immunohistochemistry based assay.

"We are now simultaneously assessing a quantitative PCR test, which we believe will increase the sensitivity and specificity of the tests, which will be important for maximum reimbursement and rapid adoption," said Meldrum. "We now expect the optimal version of this test to be launched in 2013."

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