-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KuOOELmdXf/X2iPNsl9p3efSVPOfR7IfdcyfVdBKUNX9wB719Y3NGQ7e7dESAV7I tFp7DFMQuw0EIVofsPFjjQ== 0001193125-10-106525.txt : 20100504 0001193125-10-106525.hdr.sgml : 20100504 20100504161211 ACCESSION NUMBER: 0001193125-10-106525 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100504 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100504 DATE AS OF CHANGE: 20100504 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MYRIAD GENETICS INC CENTRAL INDEX KEY: 0000899923 STANDARD INDUSTRIAL CLASSIFICATION: IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES [2835] IRS NUMBER: 870494517 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-26642 FILM NUMBER: 10797404 BUSINESS ADDRESS: STREET 1: 320 WAKARA WAY CITY: SALT LAKE CITY STATE: UT ZIP: 84108 MAIL ADDRESS: STREET 1: 320 WAKARA WAY CITY: SALT LAKE CITY STATE: UT ZIP: 84108 8-K 1 d8k.htm FORM 8-K Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 4, 2010

 

 

MYRIAD GENETICS, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   0-26642   87-0494517

(State or other jurisdiction

of incorporation)

  (Commission File Number)  

(IRS Employer

Identification No.)

320 Wakara Way

Salt Lake City, Utah 84108

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (801) 584-3600

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On May 4, 2010, Myriad Genetics, Inc. (“Myriad” or the “Company”) announced its financial results for the three and nine months ended March 31, 2010. The earnings release is attached hereto as an exhibit to this Current Report on Form 8-K and is being furnished pursuant to this Item 2.02 as Exhibit 99.1 to this Current Report on Form 8-K.

In accordance with General Instruction B-2 of Form 8-K, the information set forth in Item 2.02 and in Exhibit 99.1 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

ITEM 8.01 OTHER EVENTS

On May 4, 2010, the Company announced that its Board of Directors authorized the repurchase of $100 million of the Company’s outstanding common stock. In connection with this stock repurchase authorization, the Company plans to repurchase $100 million of shares of its common stock from time-to-time in open market purchases or privately negotiated purchases as determined by the Company’s management. The Company expects to complete the share repurchase on or before December 31, 2010.

 

ITEM 9.01 Financial Statements and Exhibits.

(d)

 

Exhibit
Number

  

Description

99.1

   Earnings release dated May 4, 2010 for the three and nine months ended March 31, 2010.

99.2

   Press release dated May 4, 2010 announcing Board of Directors authorization of a share repurchase program.

 

Page 2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    MYRIAD GENETICS, INC.
Date: May 4, 2010     By:  

/s/ Peter D. Meldrum

      Peter D. Meldrum
      President and Chief Executive Officer

 

Page 3


EXHIBIT INDEX

 

Exhibit
Number

  

Description

99.1    Earnings release dated May 4, 2010 for the three and nine months ended March 31, 2010.
99.2    Press release dated May 4, 2010 announcing Board of Directors authorization of a share repurchase program.

 

Page 4

EX-99.1 2 dex991.htm EARNINGS RELEASE Earnings Release

Exhibit 99.1

Contact:

Suzanne Barton

Director, Investor Relations

(801) 584-1138

Email: sbarton@myriad.com

MYRIAD GENETICS REPORTS FINANCIAL RESULTS FOR

FISCAL 2010 THIRD QUARTER

Salt Lake City, May 4, 2010 — Myriad Genetics, Inc. (Nasdaq: MYGN) today reported financial results for the third fiscal quarter and the nine-month period ended March 31, 2010.

Third Fiscal Quarter Financial Results

Revenues rose 5% to $90.8 million for the three-month period ended March 31, 2010, from $86.5 million in the same three months of the prior fiscal year. While the Company’s ongoing sales and marketing efforts in the quarter spurred growth, the Company noted that high unemployment and other economic challenges in the markets in which it operates continued to restrain sales in the quarter.

“While revenues for the quarter followed seasonal growth patterns, macroeconomic conditions continued to impact the frequency of physician visits, which remain well below historic levels,” said Peter Meldrum, President and Chief Executive Officer of Myriad Genetics, Inc. “Amid this backdrop, we have been extremely active in refining and extending certain sales and marketing programs to drive growth. We believe these are the appropriate strategic actions to help drive further adoption and use of Myriad’s growing product lineup.”


Net income for the third quarter of fiscal 2010 rose 31% to $33.3 million, or $0.33 per diluted share, compared with $25.3 million, or $0.25 per diluted share, in the comparable period last year, which included a loss from discontinued operations of $12.9 million, or $0.13 per diluted share, related to the Company’s former research and pharmaceutical businesses.

Research and development expense was $5.9 million for the three-month period ended March 31, 2010, compared with $4.5 million for the same period in the prior fiscal year. The 30% increase was primarily due to additional expenditures for clinical studies of the Company’s currently marketed products, and research and development efforts on its internal product candidates.

Selling, general and administrative expense for the third quarter of fiscal 2010 was $40.8 million, compared with $35.5 million for the same quarter of the prior fiscal year, representing an increase of 15%. This increase was primarily attributable to costs associated with the expansion of the Company’s sales force, direct-to-consumer marketing campaigns and physician speakers programs. The Company believes these investments are important for future revenue growth.

During the third quarter of fiscal 2010, days sales outstanding for Myriad’s accounts receivable improved to 48 days compared with 49 days in the same period of the prior year. The Company believes that its accounts receivable are of high quality and its bad debt expense is a modest 4.9% of revenues.


Nine-Month Financial Results

For the first nine months of fiscal 2010, revenues increased 12% to $268.7 million from $240.4 million in the same period last year. Net income for the nine months ended March 31, 2010, was $99.1 million, or $1.00 per diluted share, compared with net income of $61.0 million, or $0.62 per diluted share, for the same period of the prior year, which included a loss from discontinued operations of $38.6 million, or $0.39 per diluted share.

The Company continues to maintain a strong balance sheet, with $511.2 million in cash, cash equivalents and marketable investment securities at March 31, 2010, compared with $392.2 million at June 30, 2009. This 30% increase reflects the Company’s strong cash generating capability, which contributed approximate $42 million during the third fiscal quarter. The Company has no debt, convertible securities, or other restrictions on its cash.

New Product Launch - PROLARIS™

Myriad announced the launch of its eighth molecular diagnostic product, PROLARIS, during this third fiscal quarter. PROLARIS is a new prognostic medicine product that the Company believes provides valuable information to physicians to assess whether a patient diagnosed with prostate cancer is likely to have a slow growing cancer, which may be appropriate for a watchful waiting strategy, or a more aggressive cancer, requiring prostatectomy or radiation therapy. PROLARIS can also be used to estimate the risk of cancer recurrence in patients who have undergone a radical prostatectomy.


In a clinical study that analyzed material obtained through a transuretheral resection of the prostate in 365 prostate cancer patients, approximately 98% of prostate cancer patients with a low (favorable) PROLARIS score survived their disease after 10 years, compared to approximately 60% of the patients receiving a high (unfavorable) score who died of prostate cancer within 10 years. For the first time, PROLARIS provides clinicians with a direct molecular measure of a prostate tumor’s capacity to divide and grow by examining genes that drive tumor growth at the molecular level.

“In discussion between our new urology sales force and physicians about the clinical value of PROLARIS, I am pleased to report that the reaction thus far has been very favorable,” Meldrum said. “Through the remainder of fiscal 2010, and into the next fiscal year, we will be working toward capturing a share of the $270 million market for prostate cancer prognosis.”

Fiscal Year 2010 Financial Outlook

In providing an outlook for revenue and earnings for the full fiscal year ending June 30, 2010, the Company expects revenue to be in the range of $360 million to $365 million, and earnings per diluted share to be in the range of $1.30 to $1.35. This guidance represents an approximate 11% revenue increase and a 54% earnings increase over the prior fiscal year.

Conference Call and Webcast

A conference call with Company management to discuss these results and recent events will be held today, May 4, 2010, at 4:30 p.m. Eastern Time. The dial-in number for domestic callers is (800) 891-3472. International callers may dial (212) 231-2901. All callers will be asked to reference reservation number 21465540. An archived replay of the call will be available for seven days by dialing (800) 633-8284 or (402) 977-9140, and entering the reservation number above. The conference call will be audiocast over the Web and can be accessed at www.myriad.com.


About Myriad Genetics

Myriad Genetics, Inc. is a leading molecular diagnostic company focused on developing and marketing novel predictive medicine, personalized medicine and prognostic medicine products. Myriad’s news and other information are available on the Company’s Web site at www.myriad.com.

Myriad, the Myriad logo, BRACAnalysis, Colaris, Colaris AP, Melaris, TheraGuide, Prezeon, OnDose, and Prolaris are trademarks or registered trademarks of Myriad Genetics, Inc. in the United States and foreign countries. MYGN-F

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the continued impact of high unemployment and other economic challenges in the markets in which the Company operates; the impact of sales and marketing strategic actions to help drive further adoption of and use of the Company’s growing product lineup; the Company’s revenue projections for this fiscal year ending June 30, 2010, in the range of $360 million to $365 million and earnings per diluted share projections for this fiscal year ending June 30, 2010, in the range of $1.30 to $1.35; the guidance representing an approximate 11% revenue increase and a 54% earnings increase over the prior fiscal year; the Company’s belief that investments in its sales force, direct-to-consumer marketing campaigns and physician speakers programs are important for future revenue growth; the Company’s belief that its accounts receivable are of high quality; the Company’s strong cash generating capability; the potential benefits from Prolaris testing; and the Company’s efforts towards capturing a share of the $270 million market for prostate cancer prognosis. These “forward-looking statements” are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by forward-looking statements. These risks and uncertainties include, but are not limited to: the risk that sales and profit margins of our existing molecular diagnostic products may decline or will not continue to increase at historical rates; the risk that we may be unable to develop or achieve commercial success for additional molecular diagnostic products in a timely manner, or at all; the risk that licenses to the technology underlying our molecular diagnostic products and any future products are terminated or cannot be maintained on satisfactory terms; risks related to delays or other problems with manufacturing our products or operating our laboratory testing facilities; risks related to public concern over our products; risks related to regulatory requirements or enforcement in the United States and foreign countries and changes in the structure of healthcare payment systems; uncertainties about our ability to obtain new corporate collaborations and acquire new technologies on satisfactory terms, if at all; the development of competing products and services; the risk that we or our licensors may be unable to protect the proprietary technologies underlying our products; the risk of patent-infringement claims or challenges of our patents; risks of new, changing and competitive technologies and regulations in the United States and internationally; and other factors discussed under the heading “Risk Factors” contained in Item 1A in our Annual Report on Form 10-K for the year ended June 30, 2009, which has been filed with the Securities and Exchange Commission, as well as any updates to those risk factors filed from time to time in our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. All information in this press release is as of the date of the release, and Myriad undertakes no duty to update this information unless required by law.

– Financial Charts Follow –


MYRIAD GENETICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

 

     Three Months Ended     Nine Months Ended  
(in thousands, except per share amounts)    Mar. 31, 2010    Mar. 31, 2009     Mar. 31, 2010    Mar. 31, 2009  

Molecular diagnostic revenue

   $ 90,830    $ 86,531      $ 268,720    $ 240,449   

Costs and expenses:

          

Molecular diagnostic cost of revenue

     10,880      11,232        33,024      32,082   

Research and development expense

     5,885      4,543        16,620      13,533   

Selling, general, and administrative expense

     40,840      35,496        121,616      102,867   
                              

Total costs and expenses

     57,605      51,271        171,260      148,482   
                              

Operating income

     33,225      35,260        97,460      91,967   

Other income (expense):

          

Interest income

     1,232      2,946        4,676      9,817   

Other

     23      (33     94      (2,038
                              

Total other income

     1,255      2,913        4,770      7,779   

Income from continuing operations before income taxes

     34,480      38,173        102,230      99,746   

Income tax provision (benefit)

     1,229      (94     3,177      193   
                              

Income from continuing operations

     33,251      38,267        99,053      99,553   
                              

Discontinued operations

          

Loss from discontinued operations

     —        (12,949     —        (38,578
                              

Net income

   $ 33,251    $ 25,318      $ 99,053    $ 60,975   
                              

Earnings (loss) per basic share

          

Continuing operations

   $ 0.34    $ 0.41      $ 1.03    $ 1.08   

Discontinued operations

     —        (0.14     —        (0.42
                              

Earnings per basic share

   $ 0.34    $ 0.27      $ 1.03    $ 0.66   
                              

Earnings (loss) per diluted share

          

Continuing operations

   $ 0.33    $ 0.38      $ 1.00    $ 1.01   

Discontinued operations

     —        (0.13     —        (0.39
                              

Earnings per diluted share

   $ 0.33    $ 0.25      $ 1.00    $ 0.62   
                              

Weighted average shares outstanding

          

Basic

     96,853      94,327        96,361      92,757   

Diluted

     99,674      99,594        99,521      97,979   

Condensed Consolidated Balance Sheets (Unaudited)

 

(In thousands)    Mar. 31, 2010    Jun. 30, 2009

Cash, cash equivalents, and marketable investment securities

   $ 511,183    $ 392,225

Trade receivables, net

     48,117      44,617

Other receivables

     946      655

Prepaid expenses

     2,909      3,993

Equipment and leasehold improvements, net

     24,275      22,623

Other assets

     2,133      2,275
             

Total assets

   $ 589,563    $ 466,388

Accounts payable and accrued liabilities

   $ 22,217    $ 32,169

Stockholders’ equity

     567,346      434,219
             

Total liabilities and stockholders’ equity

   $ 589,563    $ 466,388

# # #

EX-99.2 3 dex992.htm PRESS RELEASE Press Release

Exhibit 99.2

Contact:

Suzanne Barton

Director, Investor Relations

(801) 584-1138

sbarton@myriad.com

MYRIAD ANNOUNCES STOCK REPURCHASE PROGRAM

- Board of Directors Authorizes Repurchase of $100 Million of Common Stock -

Salt Lake City, May 4, 2010 – Myriad Genetics, Inc. (NASDAQ: MYGN) today announced that its Board of Directors has authorized the repurchase of $100 million of the Company’s outstanding common stock.

In connection with this stock repurchase authorization, the Company plans to repurchase $100 million of shares of its common stock from time-to-time in open market purchases or privately negotiated purchases as determined by the Company’s management. The Company expects to complete the share repurchase on or before December 31, 2010.

“The stock repurchase program announced today reflects our confidence in the long-term potential for Myriad Genetics and our commitment to the return of capital to our shareholders,” said James Evans, Chief Financial Officer of Myriad Genetics, Inc.

Based on Myriad’s closing share price on May 3, 2010, the $100 million stock repurchase represents approximately 4.3% of the Company’s total market capitalization. The stock repurchase will be funded from existing cash on hand. As of March 31, 2010, the Company had approximately $511 million of cash, cash equivalents, and marketable securities.


About Myriad Genetics

Myriad Genetics, Inc. is a leading molecular diagnostic company focused on developing and marketing novel predictive medicine, personalized medicine and prognostic medicine products. Myriad’s news and other information are available on the Company’s Web site at www.myriad.com.

Myriad, the Myriad logo, BRACAnalysis, Colaris, Colaris AP, Melaris, TheraGuide, Prezeon, OnDose, and Prolaris are trademarks or registered trademarks of Myriad Genetics, Inc. in the United States and foreign countries. MYGN-F

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the commencement and completion of the repurchase of $100 million shares of its common stock from time-to-time in open market purchases or privately negotiated purchases, as determined by the Company’s management; the Company’s expectation that the share repurchase program will be completed on or before December 31, 2010; the Company’s confidence in the long-term potential for the Company as reflected by the stock repurchase program; the Company’s commitment to the return of capital to the Company’s shareholders; and the funding of the stock repurchase from available cash. These “forward-looking statements” are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by forward-looking statements. These risks and uncertainties include, but are not limited to: the risk that sales and profit margins of our existing molecular diagnostic products may decline or will not continue to increase at historical rates; the risk that we may be unable to develop or achieve commercial success for additional molecular diagnostic products in a timely manner, or at all; the risk that licenses to the technology underlying our molecular diagnostic products and any future products are terminated or cannot be maintained on satisfactory terms; risks related to delays or other problems with manufacturing our products or operating our laboratory testing facilities; risks related to public concern over our products; risks related to regulatory requirements or enforcement in the United States and foreign countries and changes in the structure of healthcare payment systems; uncertainties about our ability to obtain new corporate collaborations and acquire new technologies on satisfactory terms, if at all; the development of competing products and services; the risk that we or our licensors may be unable to protect the proprietary technologies underlying our products; the risk of patent-infringement claims or challenges of our patents; risks of new, changing and competitive technologies and regulations in the United States and internationally; and other factors discussed under the heading “Risk Factors” contained in Item 1A in our Annual Report on Form 10-K for the year ended June 30, 2009, which has been filed with the Securities and Exchange Commission, as well as any updates to those risk factors filed from time to time in our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. All information in this press release is as of the date of the release, and Myriad undertakes no duty to update this information unless required by law.

# # #

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