Myriad Genetics, Inc. (MYGN)
F1Q13 Earnings Call
November 5, 2012 4:30 PM ET
Jim Evans – CFO
Pete Meldrum – President and CEO
Mark Capone – President, Myriad Genetic Laboratories, Inc.
Bill Quirk – Piper Jaffray
Derik De Bruin – Bank of America
Isaac Ro – Goldman Sachs
Doug Schenkel – Cowen & Company
Scott Gleason – Stephens
Jon Wood – Jefferies
Michael Yee – RBC Capital Markets
Amanda Murphy – William Blair
Tycho Peterson – JP Morgan
Previous Statements by MYGN
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» Myriad Genetics' CEO Discusses Q1 2012 Results - Earnings Call Transcript
I would now like to turn the conference over to Jim Evans, Chief Financial Officer. Please begin, sir.
Thank you and good afternoon, everyone, and welcome to the Myriad Genetics First Quarter Fiscal Year 2013 Earnings Call. During the call, we will review the financial results we’ve released today, 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 Web site at myriad.com.
Presenting for Myriad today will be Pete Meldrum, President and Chief Executive Officer; and Mark Capone, President, Myriad Genetic Laboratories. Additionally, I will be giving an update on our financial results and future expectations.
This call can be heard live via webcast along with a slide presentation at myriad.com. 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.
Thank you, Jim. Myriad delivered a very strong performance for the first quarter of the 2013 fiscal year. I am pleased to report that the total company revenue increased 21% year over year to reach a new record of $133.4 million dollars. While all of our tests contributed to this excellent performance, BRACAnalysis again demonstrated strong year-over-year growth of 17% as the initiatives that we have put in place to further penetrate the oncology and women’s health care segments continued to progress. COLARIS also contributed and showed impressive growth this quarter as revenues from our colon cancer test grew 26% year over year.
With the updated NCCN guideline recommendations and quicker than expected insurance reimbursement, BART revenues increased 188% over the same period of the prior year. Myriad’s other products contributed to our record revenue with a 17% increase compared to the same quarter last year.
Both the Oncology and Women’s Health segments performed well during the first fiscal quarter; however, the Women’s Health segment was particularly impressive with a 38% increase in revenue compared to the prior year period. For the quarter, net income increased $30.1 million and diluted earnings per share grew 24% to $0.36.
Based on the strong first quarter financial performance, the accelerated growth in Women’s Health segment, and the quicker than expected BART reimbursement, I am pleased to announce that we have increased our guidance for fiscal 2013. We are now projecting revenue in fiscal 2013 to be $570 million to $585 million, which represents a 15% to 18% growth over the prior year. This level of revenue is expected to result in diluted earnings per share of $1.50 to $1.55 in fiscal 2013. Jim will discuss the company’s guidance in more detail later in the call.
During our first fiscal quarter, we continued to execute on our strategic directives for long-term revenue growth and product diversification. Underlying this strategy is our commitment to improving patient care through the development and marketing of novel molecular diagnostic tests across multiple medical specialties. Our strategy is focused on reducing inefficiencies and costs in the healthcare system by providing physicians and patients with critical disease information to guide treatment decisions.
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 tests, across a diverse set of medical disease indications. With the successful execution of these directives, we believe Myriad will be well positioned for long-term revenue growth and diversification.
Mark will provide an update on our first strategic directive and I will focus the remainder of my comments on our international operations, our product pipeline, and our companion diagnostic efforts.
Our international expansion continues to progress well. We have significantly increased our sales, marketing and clinical capabilities by adding an additional 10 individuals to the European team. The company has also increased its international presence and now has agreements with 16 distributors in 30 different countries in Europe, South America and Asia.