The company, which is developing drugs for the treatment of AIDS and other illnesses, also sells genetic tests that can help determine if someone has a predisposition to diseases such as breast or skin cancer.

Peter Meldrum, Myriad's chief executive officer, broached that the possible restructuring earlier this week during a conference call with investors and research analysts who follow the company.

"The challenge will be to address Wall Street's growth-and-earnings expectations without shortchanging our investment in [research and development] and the long-term future of the company," Meldrum said.

To date, Myriad has pursued a "hybrid" strategy. It used revenue generated from its profitable and rapidly growing molecular diagnostic businesses to help fund its drug development and research efforts.

"While our strategy certainly benefited the company in the past when we were not profitable, I believe it is incumbent on the board and management team at Myriad to revisit the strategy in light of the dynamics surrounding a profitable company," he said.

Myriad reported net income of $65.5 million, or $1.40 a share, for the fourth quarter of its 2008 fiscal year that ended June 30. A year ago, the company recorded a loss of $7.8 million, or 18 cents a share.

Revenue reached $166.9 million, with $100 million of that the result of a payment from Denmark's H. Lunbeck A/S, which last year purchased the rights to Flurizan, a drug that Myriad hoped would prove effective in the treatment of Alzheimer's disease.

Myriad subsequently ended work on Flurizan after advanced human trails failed in June to demonstrate the drug's effectiveness.

Revenue from Myriad's genetic tests grew 53 percent in the quarter, to $64.7 million.

Analyst Derek Taller with The Benchmark Co. said in a research note released Wednesday the company's revenue from its molecular diagnostic tests grew 9.5 percent quarter-over-quarter.

"Given that the company has $9 in cash [per share] and no debt, the earnings power of the molecular diagnostic business may be enough to drive the stock to $70 near term, in our view," Taller wrote.

Myriad's shares closed Wednesday at $65.50, up $3.10 for the day.

steve@sltrib.com