With that, I’ll now turn the call over to Pete.
Thank you , Rebecca. Myriad’s strategy is to become a leader in the commercialization of transformative molecular diagnostic tests that save lives and improve the quality of life for patients with chronic diseases. In an effort to implement this strategy we are focusing on three strategic directives: one, to grow existing tests and markets; two, to develop an international presence; and three, to launch new tests – both as a result of investment in in-house research and development and through the acquisition of new test and technologies which expand our disease focus. We believe the successful implementation of these directives will position Myriad as an international molecular diagnostic leader with transformative tests across all disease indications.
Today I will discuss the company’s key initiatives to introduce new tests and to expand internationally, each of which I believe will move us closer toward achieving our goal. Mark will provide an update on our first strategic directive to grow our existing tests and markets. In September, Myriad announced a significant deal with Crescendo Biosciences, a molecular diagnostic company focused on autoimmune and inflammatory diseases. Myriad loaned Crescendo $25 million and secured an exclusive three-year option to acquire all of their outstanding shares at a predetermined formula price based on Crescendo’s revenues and growth rate at the time the option is exercised.The loan is secured by Crescendo’s intellectual property rights in the United States and carries an interest rate of 6% with interest payable annually. If Crescendo is successful with its commercial plans and Myriad exercises its option to acquire Crescendo, the loan will be applied to the purchase price. If Myriad decides against the acquisition the loan is payable at the end of the six-year term. We believe this transaction is an attractive, low-risk strategy to position Myriad in the autoimmune and inflammatory disease markets.
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