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Myriad Genetics Q2 Profit Soars 57%, Announces Acquisition

By Sean Williams – Feb 4, 2014 at 5:02PM

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Myriad Genetics delivers 37% top-line growth and boosts its full-year forecast after announcing the acquisition of Crescendo Bioscience.

Following a number of tumultuous months, shareholders of molecular diagnostics company Myriad Genetics (MYGN 7.03%) have a reason to smile after the company delivered impressive second-quarter earnings results after the bell.

For the quarter, Myriad Genetics reported a 37% increase in revenue to $204.1 million as adjusted EPS increased a whopping 57% to $0.66.

Molecular diagnostics growth accounted for the bulk of Myriad's gains, with its oncology segment seeing sales increase 12% to $101.6 million and its women's health revenue soaring 90% to $94.6 million.

The company's BRACAnalysis test, a genetic test targeting the BRCA1 and BRCA 2 genes which are associated with a higher risk of breast and ovarian cancer, saw sales increase 28% to $141.2 million, and represented 69% of total company revenue. Similarly, the company's BART diagnostic also saw revenue rise 57% to $24.7 million.

Another bright spot for Myriad was the recent launch of its myRisk Hereditary Cancer Test which launch in September and brought in $11.5 million in revenue for the quarter.

Also after the bell, Myriad announced the acquisition of privately held Crescendo Bioscience for $270 million in cash (which will be reduced by $25 million for the repayment of a loan made to Crescendo). Crescendo's diagnostics portfolio and focus on the rheumatoid arthritis market will "enable us to move to the next level in terms of scale and growth," according to William Hagstrom, CEO of Crescendo Bioscience.

Looking ahead, and factoring in its acquisition of Crescendo, Myriad Genetics boosted its full-year 2014 revenue and EPS guidance to a new range of $740 million to $750 million and $2.09-$2.12 from its own prior forecast of $700 million to $715 million and $1.92-$1.97.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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