Myriad says cash from current products funding development programs; posts $11.4 million Q4 net loss

By Jennifer Lanning Drey

Eugene, Ore., Aug. 22 - Myriad Genetics, Inc. said cash generated during fiscal 2006 by its four commercialized products has funded a significant portion of the company's drug development programs throughout the year.

During a company conference call held Tuesday, Myriad chief executive officer Peter Meldrum also reported that predictive medicine revenues increased to a record $100.6 million in fiscal 2006, compared to $71.3 million in 2005.

"Demand for our products has continued to grow over the summer, and we are looking forward to another good year in 2007," Meldrum said.

Myriad currently has seven clinical studies underway, and the company announced Tuesday that it has completed enrollment in its phase 3 clinical trial of Flurizan for patients with Alzheimer's disease.

The U.S. trial is designed as an 18-month study; however, an interim review of the data after 12 months has the potential to end the trial early if exceptional results are achieved.

Myriad also reported Tuesday that it has tentatively identified a maximum dose tolerance for its experimental anti-cancer drug and expects to begin phase 2 clinical studies of the drug for metastatic brain tumors this fall.

In addition, Myriad began a phase 1 clinical trial of MPC-0920, its oral anti-thrombin drug, in May. The primary objective of the study is to examine the safety of MPC-0920 and a secondary objective will be to study the biological activity of MPC-0920.

Phase 1 clinical trials of MPC-2130 for treatment of blood cancers are also progressing but have not yet established a maximum tolerated dose, said Adrian Hobden, president of Myriad Pharmaceuticals Inc., during Tuesday's call.

In fiscal 2007, the company plans to invest research and development funding in its additional investigational drugs that are currently in preclinical development, said Jay Moyes, chief financial officer of Myriad.

"We have also made significant expenditures in the late-stage preclinical development of our other drug candidates. Since we expect to move additional drug candidates into the clinic and advance our current clinical drug programs, we believe our research and development expenses will continue to grow over the next several quarters," Moyes said.

Four years' cash

Meldrum also said Tuesday that at its current burn rate, Myriad believes its cash will last for more than four years, and the company will not need to raise additional funding during that time.

Myriad reported cash, cash equivalents and marketable investment securities of $228 million at June 30, compared to $114 million at June 30, 2005, according to a company press release.

Myriad reported a net loss of $11.4 million, or $0.29 per basic and diluted share, for the fourth quarter, compared with a net loss of $10.0 million, or $0.32 per basic and diluted share, in the same quarter of 2005, according to the release.

Revenues for the quarter were $32.0 million, compared with $26.1 million for the fourth quarter of 2005.

Myriad is a Salt Lake City biopharmaceutical company focused on the development of novel health care products.

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