Font Resize- Myriad Genetics
- Nov 4:
- Judge won't dismiss gene lawsuit against University of Utah, Myriad Genetics
- Sep 29:
- Stakes rise in gene-patenting lawsuit
- Aug 25:
- Myriad posts higher revenue, earnings
- Jul 21:
- U., Myriad Genetics seek dismissal of gene patent suit
- Jun 12:
- Myriad Pharmaceuticals begins trading on Nasdaq
Utah's Myriad Genetics Inc. often warns investors that historically, the first quarter of each fiscal year is its weakest.
And this year, Myriad's first quarter that ended Sept. 30 was no exception, according to Peter Meldrum, Myriad's president and chief executive.
In a conference call with the investment community this week, Meldrum said that with Labor Day falling later than usual this year, the vacation period was extended, and that delayed patient visits to doctors offices, "which we believe cut into our typically stronger September revenues."
Myriad sells genetic tests that help determine if someone has a predisposition to diseases such as breast and ovarian cancer. It saw its revenue decline to $85.1 million during the first quarter, or 1 percent less than the $86.1 million recorded in the fourth quarter of fiscal 2009.
Securities analyst Karen Andersen, who follows Myriad for Morningstar, took Meldrum's explanation a bit further.
"A combination of seasonal weakness due to the summer holidays and fewer insured patients due to high unemployment led to the slight sequential decline in sales, as patients made fewer doctor visits and proved less willing to pay for expensive tests out of pocket," she said in a note to clients.
Still Myriad reported that its first quarter net income was $30.4 million, or more than double the net income of $14.5 million reported a year earlier. Earnings per share for the first quarter
Meldrum said while the weak economic environment continued to restrain overall revenue growth compared to the prior year, the company started to see stronger demand return for its products during the latter half of September and continuing through October.
Pointing to Myriad's plans to launch a new oncology product in the third quarter and a test for pancreatic cancer later in the year, analyst Isaac Ro of Leerink Swann LLC in New York said he is optimistic revenue growth will accelerate in the second half of FY 2010.
"We believe that Myriad has six to 10 credible pipeline products and will launch at lease one new [test] annually for the next several years," he wrote.
