Myriad Genetics plans follow-on sale of 7 million shares via JP Morgan

By Ronda Fears

Nashville, Oct. 28 - Myriad Genetics Inc. launched Friday a proposed follow-on offering of 7 million shares via bookrunner J.P. Morgan Securities Inc.

Joint lead managers are Bear Stearns & Co. Inc. and UBS Investment Bank. Co-managers are Piper Jaffray, First Albany Capital and JPM Securities.

There is a greenshoe of 1,050,000 shares available.

The deal is scheduled to price the week of Oct. 31.

Salt Lake City-based Myriad Genetics, which has developed various gene-based drugs in the fields of cancer, Alzheimer's and infectious diseases such as AIDS, estimates net proceeds at $138 million, assuming a price of $21.01 per share. The company plans to use proceeds for general corporate purposes preclinical studies and clinical trials, to further its predictive medicine product strategy, to develop or in-license new technologies, for working capital and for possible acquisitions.

On Wednesday, the company reported a fiscal first-quarter net loss of $9.2 million, or 30 cents per share, compared with a loss of $10.0 million, or 33 cents per share, in the same period a year before. Revenue climbed to $25.1 million from $16.7 million.

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