Myriad Genetics' CEO Discusses F4Q12 Results - Earnings Call Transcript

Myriad Genetics, Inc. (MYGN)

F4Q12 Earnings Conference Call

August 14, 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.

Jon Wood – Jefferies & Company, Inc.

Amanda Murphy - William Blair

Michael Yee - RBC Capital Markets

Joel - Goldman Sachs

Sean Rodriguez - Cowen & Company

Derik de Bruin - Bank of America

William Quirk - Piper Jaffray

Tycho Peterson – JPMorgan

Dan Leonard - Leerink Swann



Ladies and gentlemen, thank you for standing by. Welcome to the Myriad Genetics' 2012 Fourth Quarter and Fiscal year-end Earnings Call. During the presentation, all participants will be in a listen-only-mode. Afterwards, we will conduct the question-and-answer session. (Operator instructions). As a reminder, this conference is being recorded Tuesday, August 14, 2012.

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

Rebecca Chambers

Thank you, Susan. Good afternoon, everyone, and welcome to the Myriad Genetics' fourth quarter and fiscal year 2012 earnings call. During the call, we will review the financial results we've released today and detail our expectations for fiscal 2013, after which we will host the 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 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 will now turn the call over to Pete.

Peter D. Meldrum

Thank you, Rebecca. To begin I would like to highlights our results for fiscal 2012, which by all accounts was a year of very strong performance for Myriads.

I'm extremely pleased to report that the total company revenue increased 23% year-over-year to reach a new record of $496 million. All of our tasks contributed to this excellent performance.

Importantly, BRACAnalysis demonstrated solid year-over-year growth of 15% in fiscal 2012 as we increased our market penetration in both the Oncology and Women's Health segments. COLARIS delivered impressive growth last year as revenues from our colon cancer test grew 48% year-over-year. Our other products also contributed to our record revenues by increasing 32%.

For the full year, net income increased to $112.2 million and diluted earnings per share grew 18% to a $1.30. We believe we will continue to reap the benefits of our strategic initiatives for long-term growth in fiscal 2013. Therefore we are projecting revenue in fiscal 2013 to be $550 million to $565 million, which represents an 11% to 14% growth over last year.

This level of revenue is expected to result in diluted earnings per share of $1.44 to $1.48, which is also an 11% to 14% growth over the $1.30 reported in fiscal 2012. Jim will discuss the Company's guidance in more detail later on in the call.

We are building on these strong results by continuing to execute on our strategic directives for long-term growth and diversification. Underlying these strategic directives is our commitment to improving patient care through the development and marketing of transformative tests across multiple medical specialties and geographies, which address pressing clinical needs.

Our strategy is also focused on reducing inefficiencies and costs in the healthcare system, by providing patients and physicians with critical disease information to guide treatment and prevention.

As a reminder, our three strategic directives are; first, to grow our existing tests and markets; second, to expand our business internationally; and third, to launch new products, including Companion Diagnostic test across the diverse set of major disease indications.

With the successful execution of these directives, we believe Myriad is well positioned for long-term revenue growth and diversification. We will begin to see the benefits of one of these long-term initiatives this year as our international operations are expected to contribute to our revenue this fiscal year.

We are excited about the progress made thus far in Europe, as well as the future prospects for the region. Therefore, we will continue building out our infrastructure in five major countries; Germany, France, Italy, Spain and Switzerland. This expansion will focus on our sales and marketing and clinical efforts.

In total, 20 additional employees will be hired with the majority focused on educating physicians and patients about Myriad's competitive advantages, which include a 14-day turnaround time, versus the current 6 to 12 months and a 97% mutation risk determination, versus the 70% to 75% standard in Europe today.

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