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We are a June 30 fiscal year company, and we finished June 30, 2011 with revenues of $402 million. That represented an operating profit of $158 million. The company generates significant cash, $189 million of positive cash flow. And we apply that cash not only to reinvest in the company, but we completed a $200 million stock repurchase program as well. If you look at healthcare today, it’s very effective in the United States but it’s not very efficient. There is fragmented decision making, waste that goes on in the healthcare system, we don’t always know if an individual should be treated so there are unnecessary treatments. And I will talk a little bit about one of our products, PROLARIS, in prostate cancer, where there are many unnecessary surgeries that men take as the don’t know how aggressive their cancer is.And Myriad’s solution to this is to develop products that prevent disease, an ounce of prevention is worth a pound of cure, so we lower cost by preventing the disease in the first place rather than waiting for an individual to contract the disease and then treat the disease. By diagnosing earlier when the treatment is more effective and the survival rate is more effective, and by guiding therapies for the individual’s genetic makeup so that they receive an optimal treatment regime. Myriad has three strategic directives that we have focused on to grow revenues and expand our opportunities in the near term. We are certainly going to grow existing products in markets and I will talk about that in just a minute. But we have also developed now an international presence with the opening of our European facilities. And we are developing new tests and have a strong product pipeline, both in the molecular diagnostic field but also with companion diagnostics. All of these we think will fuel long-term growth for the company.
The first strategic directive then is to grow our existing products in markets. And I would like to talk briefly about the three of our products. BRACAnalysis is our flagship product. It is a test that identifies an individual’s risk for developing breast or ovarian cancer later in life. And the company is expanding that market by moving from traditional invasive breast cancer to developing information and support for triple negative breast cancer, carcinoma in situ, and expanding in the ovarian cancer market. And these three initiatives have allowed us to grow this market so that BRACAnalysis right now has a market potential of greater than $1 billion annually.COLARIS is a similar product but focused on colon cancer and endometrial cancer. And we have recently improved the colorectal cancer test by adding a fourth gene to the panel, making it much more informative, called PMS2. We have hired a specialty physician sales force calling on GI docs to expand our outreach. And have experienced very strong growth, in fact, last quarter the COLARIS product grew 35% year-over-year. This represents about a $400 million annual market potential. The newest product the company has launched is PROLARIS, which assesses a man’s prostate cancer and how aggressive that cancer will be. And I am going to talk a little bit more about each of these tests. PROLARIS has a $700 million market potential. When we think of BRACAnalysis, an individual who has a mutation in one of the two genes we test for, has an 86% chance of developing breast cancer later in life, and a 44% chance of developing ovarian cancer. Obviously, those are fairly scary numbers. But armed with that information there are things that the patients and the physician can do to reduce substantially by over 50%, the probability that they are going to actually get the cancer. An increased surveillance so that they can catch the disease at an earlier stage when it’s more treatable. Not only is this information critical in terms of managing the patient’s healthcare, but it is very cost effective. If you look at cost effective medicine, which is about $50,000 for quality of adjusted life here saved, BRACAnalysis comes in at about 60% of that, or $30,600. So it is very cost effective, it saves the overall healthcare system money. And at the same time is critical in the managing of patient’s hereditary cancer risk. Read the rest of this transcript for free on seekingalpha.com