- Myriad Genetics Inc (MYGN) posted a better-than-expected quarterly profit, fueled by a strong growth in its molecular diagnostics business that offset a sharp drop in its research-related revenue. The company, which plans to spin off its drug development business from its molecular diagnostics business, posted a net income of $21.2 million, or 43 cents a share, compared with a net loss of $5.1 million, or 11 cents a share, a year ago.
Revenue for the second quarter rose to $84.4 million from $56.7 million in the prior-year quarter, boosted by the jump in its molecular diagnostic revenue to about $84.0 million. Research and other revenue, however, fell 88 percent. Analysts on average expected the company to earn 32 cents a share, before items, on revenue of $79.0 million for the quarter ended Dec. 31, 2008, according to Reuters Estimates.
Myriad said the revenue growth resulted from a rise in its sales and marketing efforts, including expansion of the women's health sales force and continuation of the direct-to-consumer marketing campaign. The company's research and development expense fell 27 percent due to the discontinuation of the Alzheimer's disease program in June 2008, the company said.
The Company continues to maintain a strong balance sheet, with $497 million in cash, cash equivalents and marketable investment securities and no debt or convertible securities. During the quarter, we experienced an improvement in our accounts receivable collection period to an average of 45 days with a modest 5% allowance for doubtful accounts.
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