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Myriad's Q1 Revenues Jump 20 Percent

NEW YORK (GenomeWeb News) – Myriad Genetics reported after the close of the market Tuesday that its first-quarter 2012 revenues increased 20 percent, as it beat Wall Street estimates on both the top and bottom line.

The Salt Lake City-based molecular diagnostics firm brought in total revenues of $110.5 million for the three months ended Sept. 30, up from $91.9 million for the first quarter of 2011. Analysts had expected revenues of $106.5 million for the quarter.

Myriad's molecular diagnostics revenues increased to $104 million from $91.9 million. It reported companion diagnostics revenues of $6.5 million, compared to no such revenues in Q1 2011. The CDx revenues come from its Myriad RBM subsidiary, which was formed after the firm acquired Rules-Based Medicine earlier in the year for $80 million.

Myriad officials said on a conference call that Myriad RBM is projected to bring in revenues of $24 million to $26 million fiscal 2012. The subsidiary has five products progressing toward commercialization, Myriad CEO Peter Meldrum noted on the call.

Sales of the firm's BRACAnalysis test were $89.5 million for the quarter, up from $80.7 million. Sales for the Colaris and Colaris AP tests were $9.6 million, up 35 percent year over year.

Marc Capone, president of Myriad Genetic Laboratories, said the increase in Colaris revenues was driven by higher demand and increased test revenue due to the inclusion of a fourth gene (PMS2). "We expect the product to continue to grow in the double digits for the rest of this fiscal year," he added.

Myriad's net income for the quarter was $25.1 million, or $.29 per share, versus $22.5 million, or $.24 per share. It beat Wall Street estimates of $.28 per share.

Its R&D spending increased around 47 percent to $8.5 million from $5.8 million, and its SG&A expenses rose 17 percent to $46.1 million from $39.5 million.

During the quarter, Myriad made a $25 million debt investment into Crescendo Bioscience and secured a three-year option to purchase the developer of molecular diagnostics targeting autoimmune diseases. The potential acquisition of Crescendo would expand Myriad's portfolio of tests and add rheumatology as a sixth disease specialty to its strategic focus, which currently includes oncology, preventative care, urology, dermatology, and neuroscience.

"We believe this transaction is an attractive, low-risk strategy to position Myriad in the autoimmune and inflammatory disease markets," Meldrum said on the call.

In addition to expanding its pipeline, one of Myriad's key strategic initiatives is building its business in Europe. The firm has established a European headquarters in Zurich and recently completed the building of its lab in Munich, Germany. Meldrum said the firm expects that facility to be fully certified to begin molecular diagnostic testing there by the end of December.

"This means we will be generating European revenues in January 2012," said Meldrum. "Our current facility will have sufficient capacity to generate over $50 million in revenues each year, and we hope to meet this level of revenue within the next five years."

Myriad finished the quarter with $401.7 million in cash, cash equivalents, and marketable investment securities.

The company reiterated its earlier guidance for fiscal-year 2012 revenues of $445 million to $465 million, and EPS of between $1.20 and $1.25.

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