Myriad Genetics' CEO Discusses Q1 2012 Results - Earnings Call Transcript

Myriad Genetics, Inc. (MYGN)

Q1 2012 Earnings Call

May 1, 2012 4:30 pm ET


Rebecca Chambers – Director of Investor Relations

Peter D. Meldrum – President and Chief Executive Officer

Mark C. Capone – President, Myriad Genetic Laboratories

James S. Evans – Chief Financial Officer and Treasurer


Scott Gleason – Stephens Inc.

John Wood – Jefferies & Company, Inc

Amanda Murphy – William Blair & Company, L.L.C.

Michael Yee – RBC Capital Markets

William T. Cook – Piper Jaffray, Inc.

Doug Schenkel – Cowen and Co.

Tycho W. Peterson – JPMorgan Securities LLC

David Ferreiro – Oppenheimer Securities

Isaac Ro – Goldman Sachs

Kevin DeGeeter – Ladenburg Thalmann Securities



Ladies and gentlemen, thank you for standing by. Welcome to the Myriad Genetics 2012 Third Quarter Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards we’ll conduct a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded Tuesday, May 1, 2012.

I would now like to turn the conference over to Ms. Rebecca Chambers, Director of Investor Relations. Please go ahead.

Rebecca Chambers

Good afternoon everyone, and welcome to the Myriad Genetics’ Third Fiscal Quarter Earnings Call. During the call, we will review the financial results we released today and the progress made this quarter on our strategic directives, after which we will host a question-and-answer session. If you have not had a chance to review the earnings release it can be found in the Investor Relations section of our website at

Presenting from Myriad today will be Pete Meldrum, President and Chief Executive Officer; Mark Capone, President, Myriad Genetic Laboratories; and Jim Evans, our Chief Financial Officer. This call can be heard live via webcast along with the slide presentation at The call is being recorded and will be archived in the Investors section of our website.

Please note that some of the information presented here today may contain projections or other forward-looking statements regarding future events or the future financial performance of the company. These statements are based on management’s current expectations and the actual events or results may differ materially and adversely from these expectations for a variety of reasons. We refer you to the documents the company files from time-to-time with the Securities and Exchange Commission, specifically the company’s annual report on Form 10-K, its quarterly reports on Form 10-Q, and its current reports on Form 8-K. These documents identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.

With that, I’ll now turn the call over to Pete.

Peter D. Meldrum

Thank you, Rebecca. To begin, I would like to provide highlights of our third quarter results and introduce the company’s updated guidance for this fiscal year. I’m extremely pleased to report that third quarters increased 27% year-over-year to reach a new record $129.8 million. All of our products contributed to this excellent performance, but COLARIS stood out with a 51% year-over-year growth. The second quarter in a row where COLARIS grew more than 50% year-to-year.

Net income for the third fiscal quarter increased to $29.6 million, and resulted the diluted earnings per share of $0.34. These results were beyond our expectations, primarily due to our strategic initiatives to expand our oncology and women’s health markets.

Given the continued performance of these initiatives, we’ve decided to increase our guidance for fiscal 2012, for the second time this year. Revenue is now expected to be in the range of $492 million to $496 million, which represents 22% to 23% growth over the prior fiscal year. Diluted earnings per share guidance has also been increased to $1.29 to $1.31 representing a 17% to 19% growth over fiscal 2011.

These strong results have positioned us well for continued success, particularly when combined with the strategic directives that we are focusing on for long term growth. Myriad is dedicated to improving patient care through the development and marketing of transformative tests across multiple medical specialties, which do have present clinical needs. With this strategy in mind we’ve put forward the following three strategic directives. One to grow existing tests and markets, two to expand our business internationally, and three to launch new transformative products including companion diagnostic tests across a diverse set of major disease indications.

Our international strategic initiatives continue to proceed ahead of schedule. Our five country managers and clinical affairs team have concluded the orientation and training program in Salt Lake City, and have now returned to their home countries to focus on growing Myriad’s presence in Germany, Switzerland, Italy, Spain and France.

During the third quarter, Myriad hosted a personalized Medicine Symposium and ribbon cutting ceremony at the Company’s new laboratory in Munich, Germany. Approximately 100 physicians, scientists, politicians and journalists attended the event, and heard presentation on the latest advancements and companion diagnostics and personalized medicine including recent results in melanoma and prostrate cancer research.

In addition to Gary King and me, the presenters included Dr. Horst Domdey, the Director of the Bavarian Biotech Cluster; Dr. Thorston Zenz, Professor of the National Center for Tumor Diseases at Heidelberg; and Dr. Helmuth Kotter, Director of the Medical Laboratory at the University of Innsbruck. The event was extremely well received and represented an important step from Myriad in building relationships in region, and increasing our visibility among the key opinion leaders in Europe.

Our Prolaris clinical programs in Europe are also progressing well. Pro-009 is a clinical study from a German cohort of approximately 450 radical prostatectomy samples with the clinical endpoint of biochemical recurrence; and I am pleased to report it is ahead of schedule. We’ve received most of the prostate tumor samples for this study, expect to have results published next year. This represents our ninth clinical validation study on Prolaris.

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