NEW YORK (GenomeWeb) – Myriad Genetics reported after the close of the market Tuesday that its fiscal second quarter revenues rose 5 percent from the year-ago quarter, beating analysts' consensus top-line estimate.
Myriad's total revenues for the three months ended Dec. 31, 2015 rose to $193.3 million from $184.4 million in Q2 2015, above the consensus Wall Street estimate of $189.9 million.
Myriad's net income for the second quarter rose 26 percent to $30.3 million, or $.41 per share, from $24.0 million, or $.32 per share, in Q2 2015. On a non-GAAP basis, Myriad's EPS was $.45, beating the average Wall Street estimate of $.41.
Myriad's molecular diagnostic testing revenue rose to $182.6 million for the quarter, a 2 percent increase from $179.2 million in Q2 2015. Hereditary cancer test sales inched up 1 percent year over year to $166.6 million.
The company has transitioned nearly all of the physicians who frequently ordered BRACAnalysis and legacy diagnostics to the 25-gene myRisk Hereditary Cancer panel, and is now focused on expanding its indications for use and penetrating into markets beyond breast cancer, CEO Mark Capone said during a call with investors. Around 60 percent of myRisk revenue is based on three-year managed care contracts, and Capone expects to ink additional multi-year agreements in the second half of the year.
Further, sales of Myriad's Prolaris prostate cancer test rose 375 percent year-over-year, bringing in $1.9 million from $400,000 in Q2 2015. The firm's Vectra DA rheumatoid arthritis test contributed $11.3 million in revenues, a 5 percent uptick from $10.8 million in the previous year's quarter.
The company's revenue from pharmaceutical and clinical service sales also increased, rising 106 percent to $10.7 million from $5.2 million in Q2 2015.
The company's international business comprised just under 5 percent of total revenues. During Q2, Myriad garnered a competitive tender for EndoPredict in France and the company expects to begin generating revenue during CY2016. Also, Switzerland's largest insurer, Helsana, issued favorable coverage for Prolaris.
Myriad is also looking to penetrate further into the companion diagnostics space. The firm is developing a suite of companion tests to identify responders to DNA-damaging agents. During the quarter, Myriad initiated the early-access launch of myChoice HRD for platinum-based chemotherapy and began processing samples through its CLIA labs.
Tesaro, which is using Myriad's HRD test in studies to identify best responders to its PARP inhibitor niraparib, is planning to release data from the pivotal NOVA study in the second quarter of 2016. "This will be a major milestone because this will be the first time that myChoice HRD is used in a prospective clinical trial with a PARP inhibitor," Capone said. "If this trial is successful, it will likely lead to additional collaborations with pharmaceutical partners and represent a major validation of the clinical efficacy of the [test]."
Myriad also announced it has added two new companion tests to its CDx suite: a tumor sequencing panel of 80 clinically actionable genes that pharmaceutical partners can customize for their clinical trials, and an immune pathway assay for predicting response to immunotherapeutics. Capone noted that Myriad has signed two undisclosed collaborations with drugmakers to evaluate these new products in combination with myChoice HRD.
Myriad's Q2 R&D expenses decreased around 5 percent to $16.7 million from $17.5 million, while its SG&A spending decreased to $90.8 million from $92.7 million.
During the quarter, the firm repurchased approximately 600,000 shares, or $25 million, of common stock under its repurchase program and ended the quarter with around $92 million in its current share repurchase authorization. It ended the quarter with $134.7 million in cash and cash equivalents, and $84.6 million in marketable investment securities.
For fiscal year 2016, Myriad maintained its previous guidance for revenues of between $750 million and $770 million, and raised its guidance for adjusted EPS to between $1.63 and $1.68 from its previous guidance of $1.60 to $1.65. Analyst estimates for the fiscal year are for revenues of $759.3 million and EPS of $1.64.
For fiscal Q3, however, the company said it expects revenues in the range of $183 million to $185 million, and adjusted EPS of between $.37 and $.39, below analyst estimates of $190.1 million in revenues and EPS of $.40.
Myriad's shares fell nearly 4 percent to $37.00 in after-market trading on the Nasdaq.