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

February 03, 2010 | About:
10qk

10qk

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Myriad Genetics Inc. (MYGN) filed Quarterly Report for the period ended 2009-12-31.

Myriad Genetics Inc. has a market cap of $2.31 billion; its shares were traded at around $23.98 with a P/E ratio of 21 and P/S ratio of 7.1. MYGN is in the portfolios of Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC.

Highlight of Business Operations:

To date we have launched seven commercial molecular diagnostic products, including four predictive medicine and three personalized medicine products. We market these products through our own 300-person sales force in the United States and we have entered into marketing collaborations with other organizations in selected foreign countries for some of our predictive medicine products. Molecular diagnostic revenue was $92.8 million and $177.9 million for the three and six months ended December 31, 2009, an increase of 11% and 16% over revenues of $84.0 million and $153.9 million for the same periods in the prior year. We launched our first molecular diagnostic product, BRACAnalysis®, in November 1996, and sales of BRACAnalysis account for most of our molecular diagnostic revenues.

We incurred research and development expenses from continuing operations of $5.1 million and $10.7 million for the three and six months ended December 31, 2009, compared to $4.6 million and $9.0 million for the three and six months ended December 31, 2008. Our research and development expenses include costs incurred in maintaining and improving our seven current molecular diagnostic products and costs incurred for the discovery, development and validation of our pipeline of molecular diagnostic product

For the three and six months ended December 31, 2009, we had net income of $35.4 million and $65.8 million compared to $21.2 million and $35.7 million for three and six months ended December 31, 2008. As of December 31, 2009, we had an accumulated deficit of $54.1 million.

Interest income for the three months ended December 31, 2009 was $1.5 million, compared to $3.4 million for the same three months in 2008, a decrease of 55%. The decrease was due primarily to lower interest rates during the 2009 period and the contribution of approximately $188 million of cash and marketable securities to MPI on June 30, 2009. Other income for the three months ended December 31, 2009 was $0.3 million compared to $0 for the same three months in 2008.

Interest income for the six months ended December 31, 2009 was $3.4 million, compared to $6.9 million for the same six months in 2008. The decrease was due primarily to lower market rates during the period and the contribution of approximately $188 million in cash and marketable securities to MPI on June 30, 2009. Other income for the six months ended December 31, 2009 was $0.1 million, compared to other expense of $2.0 million for the same six months in 2008. The decrease was due to an 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.

Net cash provided by operating activities was $65.9 million during the six months ended December 31, 2009, compared to $37.2 million provided by operating activities during the same six months in 2008. Trade accounts receivable increased $13.4 million (excluding bad debt write-offs/reserves) between June 30, 2009 and December 31, 2009, primarily due to increases in molecular diagnostic sales. Prepaid expenses increased $1.9 million due to increased sales and marketing efforts associated with our midwest and southern DTC campaigns. Accrued liabilities and accounts payable decreased by $4.7 million and $4.8 million, respectively, between June 30, 2009 and December 31, 2009, primarily due to payments made of accounts payable related to our discontinued operations following the spin-off of our former research and drug development businesses to MPI on June 30, 2009.

Read the The complete Report

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