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Myriad Genetics Reports Fiscal Fourth-Quarter And Full-Year 2014 Financial Results

Stocks in this article: MYGN

SALT LAKE CITY, Aug. 12, 2014 (GLOBE NEWSWIRE) -- Myriad Genetics, Inc. (Nasdaq:MYGN) today announced financial results for its fiscal fourth quarter and fiscal year ended June 30, 2014, provided an update on recent business highlights, and provided financial guidance for its fiscal year ending June 30, 2015. Revenue for the fiscal fourth quarter was $188.8 million compared to $174.1 million in the same period of the prior year, an increase of 8.4 percent. Fourth quarter GAAP earnings per diluted share were $0.43, which included $3.8 million in certain non-cash charges, resulting in adjusted earnings per diluted share of $0.48.

"Myriad had an outstanding year as we launched a record three new products and closed a major strategic acquisition. I am exceptionally proud of the Myriad team and their outstanding performance in the face of broad competition," said Peter D. Meldrum, president and chief executive officer of Myriad. "I am particularly pleased with the rapid acceptance and uptake of our myRisk Hereditary Cancer™ test, with fourth quarter revenues of $27.3 million, an increase of 89 percent as compared to our March 2014 quarter."

Fiscal Fourth Quarter 2014 Results

  • Molecular diagnostic testing revenue in the fiscal fourth quarter equaled $182.9 million, an increase of 10 percent compared to the fourth quarter of 2013. Our Women's Health market revenue totaled $81.9 million, an increase of 24 percent over the same period in the prior year. Revenue from our Oncology market was $90.2 million, a decrease of 10 percent over the same period in 2013. The decline in Oncology revenue is attributable to the impact of a non-recurring benefit from celebrity publicity in the fourth quarter of 2013 that resulted in increased testing volume for BRAC Analysis ® , the 18 percent reduction in the Medicare reimbursement rate for BRAC Analysis testing and competition.
    • Revenue from Myriad's hereditary cancer tests totaled $168.4 million in the fiscal fourth quarter, an increase of 3 percent over the same quarter in the previous year. BRAC Analysis revenue was $107.4 million, Myriad myRisk™ Hereditary Cancer revenue was $27.3 million, BART™ revenue was $18.9 million, and Colaris ® and Colaris AP ® revenue was $14.8 million.
    • Revenue from our Vectra DA diagnostic test for rheumatoid arthritis, which we acquired through the Crescendo Bioscience acquisition in February 2014, was $10.8 million in its first full fiscal quarter.
    • Revenue from Myriad's other molecular diagnostic tests was $3.6 million, an increase of 15 percent compared to the previous year.
    • Pharmaceutical and clinical service revenue in the fiscal fourth quarter was $5.9 million compared to $8.0 million in the same period of 2013. The decline is primarily due to the timing of research projects with our pharmaceutical company partners.
  • Operating income was $53.3 million in the fourth quarter; excluding certain non-cash charges, adjusted operating income was $56.2 million. Adjusted operating income declined 15 percent year-over-year primarily due to dilution associated with the recent Crescendo Bioscience acquisition.
  • Net income was $33.6 million and GAAP diluted earnings per share were $0.43 in the fourth fiscal quarter. Adjusted net income, excluding certain non-cash charges, was $37.1 million compared to $44.1 million in the same period of the prior year. Adjusted earnings per share was $0.48 which included an $0.08 per share loss from the recent Crescendo acquisition.
  • During the quarter, the Company repurchased 1.8 million shares or $65.7 million of common stock under its stock repurchase program. Fiscal fourth quarter diluted weighted average shares outstanding were 77.7 million compared to 82.6 million in the same period last year. 
  • The Company ended the quarter with $270.6 million in cash, cash equivalents and marketable investment securities compared to $531.0 million at June 30, 2013. The $260.4 million decline in total cash balances is primarily due to the repurchase of $287.7 million worth of company stock over the last four quarters and the acquisition of Crescendo that reduced cash by $245 million.

Fiscal Year 2014 Financial Results

  • Total revenue for fiscal year 2014 was $778.2 million, an increase of 27 percent over the $613.2 million reported for fiscal year 2013.
  • Operating income was $274.4 million for fiscal year 2014; excluding certain non-cash charges, adjusted net operating income was $291.7 million, an increase of 28 percent over the same period in the prior year.
  • Net income was $176.2 million for fiscal year 2014. Adjusted net income, excluding certain non-cash charges, was $189.6 million, an increase of 29 percent over the same period in the prior year.
  • GAAP diluted earnings per share were $2.25 for fiscal year 2014; excluding certain non-cash charges, adjusted diluted earnings per share were $2.43, an increase of 37 percent over the same period in the prior year.
  • During fiscal year 2014, Myriad repurchased 10.4 million shares of common stock for $287.7 million at an average weighted share price of $27.74.

Fourth Quarter Business Highlights

  • Myriad signed a three-year contract with the national Blue Cross and Blue Shield (BCBS) Association establishing pricing for myRisk. Myriad already has had the contract accepted by some of the BCBS member organizations and plans to work to establish acceptance with the other BCBS members.
  • At the annual American Society of Clinical Oncology (ASCO) conference, Myriad presented data demonstrating that both its BRACAnalysis CDx™ and Myriad myChoice™ HRD tests were highly effective at predicting response to platinum-based therapies. In a 160 patient randomized study, myChoice™ HRD accurately predicted response to cisplatin and paclitaxel in triple negative breast cancer patients (P=0.003).
  • Myriad entered into its sixth research collaboration for myChoice HRD with a major pharmaceutical company and plans to launch myChoice HRD this fiscal year.  
  • At ASCO, Myriad presented its second major clinical validation study on Myriad myPath™ Melanoma. The clinical study analyzed 437 pigmented lesions across multiple melanoma subtypes, and myPath Melanoma was able to differentiate between benign skin lesions and melanoma with an accuracy of greater than 90 percent.
  • Myriad also presented a health economic model on myPath Melanoma at the Association of Value Based Cancer Care Meeting in May 2014 and a clinical utility study on myPath Melanoma at ASCO in June 2014. These studies demonstrated that myPath Melanoma leads to a 38 percent change in patient medical management and a cost savings of more than $1,500 per patient tested for the healthcare system.
  • At the American Urological Association annual meeting in May, 2014, Myriad presented another major clinical validation study on the Prolaris™ test, which evaluated 800 men diagnosed with prostate cancer and demonstrated that Prolaris was highly accurate at predicting 10-year prostate cancer survival. Patients with a Prolaris score of less than 0 had only a 7 percent risk of dying of prostate cancer within 10 years compared to 59 percent in patients with a Prolaris score greater than 2.
  • A significant study on Vectra ® DA, which evaluated the important Swedish Pharmacotherapy data set, was published recently in the Annals of Rheumatic Diseases. The study followed 235 early rheumatoid arthritis patients for one year and found that patients with a high Vectra DA score had a seven-fold risk of disease progression compared to those with a low or moderate Vectra DA score.
  • Myriad was awarded contracts for BRAC Analysis testing in Spain, Italy, and Switzerland and won a Prolaris testing tender in Spain. The Company also gained major EndoPredict customers in Germany and South Korea, which bring the number of major cancer centers using EndoPredict to 25.

Fiscal Year 2015 Financial Guidance

The Company is guiding toward fiscal year 2015 total revenue of $800 to $820 million and adjusted diluted earnings per share of $1.90 to $2.00. Our adjusted EPS excludes approximately $12 million in anticipated non-cash amortization charges related to the acquisition of Crescendo Bioscience, which translates to GAAP EPS guidance of $1.75 to $1.85. These projections are forward looking statements and are subject to the risks summarized in the safe harbor statement at the end of this press release. The Company will provide further detail on its business outlook during the conference call it is holding today to discuss its fiscal 2014 fourth-quarter and full-year financial results.

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