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Myriad Genetics' Revenues Grow 6 Percent in Q3

NEW YORK (GenomeWeb) – Myriad Genetics reported after the close of the market Tuesday that its fiscal third quarter revenues grew 6 percent from the previous year's third quarter, beating analysts' consensus estimate.

Myriad's total revenues for Q3 was $190.5 million, up from $180.0 million in Q3 2015, and above the consensus Wall Street estimate of $184.9 million.

Myriad's net income for the third quarter rose 52 percent to $32.6 million, or $.44 per share, from $21.4 million, or $.29 per share, in Q3 2015. On a non-GAAP basis, Myriad's EPS was $.41, beating the average Wall Street estimate of $.38.

Myriad's molecular diagnostic testing revenue was $177.4 million for the quarter, a 3 percent uptick from $173.0 million in Q3 2015. Hereditary cancer test sales dipped 2 percent year over year to $156.3 million from $159.0 million in the prior-year quarter.

According to Myriad CEO Mark Capone, the hereditary cancer testing segment was impacted by UnitedHealthcare's new preauthorization requirements that went into effect on Jan. 1. The additional requirements led to extra days of processing time for patient samples. "In the absence of these requirements, hereditary cancer revenue would have been flat in the quarter on a year-over-year basis," Capone said during an earnings call, adding that Myriad has now put processes in place to minimize the impact of these requirements.

Meanwhile, revenue from its Prolaris prostate cancer test increased 940 percent, bringing in $5.2 million in the third quarter, which included $2 million in retrospective claims from Medicare. The company's sample volumes for Prolaris grew 90 percent year over year, and physicians have order around 4,300 tests, according to Myriad.

"We believe Prolaris has become the market-leading prognostic test," Capone said. Compared to competing tests, he highlighted that Prolaris has been validated against all endpoints recommended by the National Comprehensive Cancer Network, including 10-year mortality, and can classify 60 percent of patients as eligible for active surveillance.

Additionally, following updated guidelines from NCCN for prostate cancer prognostic tests, Myriad has submitted a dossier to Medicare seeking coverage for favorable, intermediate-risk patients. Coverage for this additional subset of prostate cancer patients would expand the Medicare-eligible population for Prolaris from 50 percent to 75 percent of patients.

The firm's Vectra DA rheumatoid arthritis test contributed $12.3 million in revenues, marking a 17 percent increase from Q3 last year.  

The company's revenue from pharmaceutical and clinical services grew 87 percent to $13.1 million from $7.0 million in Q3 2015.

Myriad's revenues from its international business increased 40 percent in the third quarter and comprised approximately 5 percent of total revenues.

The company's Q3 R&D expenses increased around 3 percent to $17.2 million from $16.7 million, while its SG&A spending dipped to $90.5 million from $91.3 million.

During the quarter, the firm repurchased approximately 1.2 million shares, or $45 million worth, of common stock under its repurchase program and ended the quarter with around $47 million in its current share repurchase authorization.

Myriad ended the quarter with $120.5 million in cash and cash equivalents, and $96.2 million in marketable investment securities.

The firm estimated its fourth quarter revenue will be between $186 million and $188 million and adjusted EPS will be in the range of $.36 to $.38. Additionally, Myriad narrowed its fiscal 2016 full year guidance to between $753 million and $755 million and adjusted EPS in the range of $1.63 to $1.65.