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Myriad Genetics Inc. Reports Operating Results (10-Q)

November 04, 2009 | About:
10qk

10qk

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Myriad Genetics Inc. (MYGN) filed Quarterly Report for the period ended 2009-09-30.

Myriad Genetics Inc. uses gene-based medicine to develop therapeutic and molecular diagnostic products. They employ a variety of proprietary proteomic technologies to discover disease genes and to understand the role these genes and their related proteins play in the onset and progression of disease. They have integrated these technologies using bioinformatics and robotics systems to conduct their research efforts on a high-throughput basis. This has enabled them to identify numerous proteins as targets for new drugs and molecular diagnostic tests. Myriad Genetics Inc. has a market cap of $2.46 billion; its shares were traded at around $25.64 with a P/E ratio of 26 and P/S ratio of 7.6.

Highlight of Business Operations:

For the three months ended September 30, 2009, we had net income from continuing operations of $30.4 million compared to $24.5 million for three months ended September 30, 2008. As of September 30, 2009, we had an accumulated deficit of $89.5 million.

Research and development expenses from continuing operations are comprised primarily of salaries and related personnel costs, laboratory supplies, and equipment and facility costs. Research and development expenses for continuing operations incurred during the three months ended September 30, 2009 were $5.7 million compared to $4.4 million for same three months in 2008. This increase of 30% was primarily due to increased research and development associated with internal predictive, personalized and prognostic product development. We expect our research and development expenses will increase over the next several years as we work to develop our product pipeline and expand our offerings of molecular diagnostic products.

Interest income for the three months ended September 30, 2009 was $1.9 million, compared to $3.4 million for the same three months in 2008. The decrease was due primarily to a lower market rates during the period. Other expense for the three months ended September 30, 2009 was $0.2 million compared to $2.0 million for the same three months in 2008. The decrease was due to a other-than-temporary impairment in 2008 on marketable investment securities from our holding of Lehman Brothers Holdings, Inc. (Lehman) bonds. Due to Lehmans bankruptcy filing we determined that our investment in certain Lehman bonds was not likely to be recoverable.

Cash, cash equivalents, and marketable investment securities increased $24.8 million, or 6%, from $392.2 million at June 30, 2009 to $417.0 million at September 30, 2009. This increase is primarily attributable to cash generated from sales of our molecular diagnostic products. This increase was partially offset by expenditures for our internal research and development programs, acquisition of capital assets, sales and marketing expense for our molecular diagnostic products, and other expenditures incurred in the ordinary course of business.

Net cash provided by operating activities was $23.2 million during the three months ended September 30, 2009, compared to $4.4 million used in operating activities during the same three months in 2008. Trade accounts receivable increased $3.5 million between September 30, 2009 and June 30, 2009, primarily due to increases in molecular diagnostic sales. Prepaid expenses increased $3.9 million due to increased sales and marketing efforts associated with our midwest and south DTC campaigns. Accrued liabilities and accounts payable decreased by $4.6 million and $6.5 million, respectively, between June 30, 2009 and September 30, 2009, primarily due to payments made following the spin-off of our former research and drug development businesses to MPI on June 30, 2009.

Our investing activities provided cash of $1.3 million during the three months ended September 30, 2009 and used cash of $41.4 million during the same three months in 2008. Investing activities were comprised primarily of purchases and maturities of marketable investment securities. Capital expenditures for research equipment and facilities were $1.6 million during the three months ended September 30, 2009.

Read the The complete Report

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