Myriad Genetics F3Q09 (Qtr End 03/31/09) Earnings Call Transcript

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2009-05-06 18:37:16.0

Tags: Revenue, Call Transcript, Earnings, Operational Accounting, Finance, Seeking Alpha, Myriad Genetics Inc.

Question-and-Answer Session

Operator

(Operator Instructions). Our first question comes from the line of Geoff Meacham with JPMorgan. Please proceed with your question.

Geoff Meacham - JPMorgan

I wondered if you can talk about either volume or revenue trends exiting the fiscal third quarter, and then anything you can give us that you're seeing in April or even so far this month on just trends? Thanks.

Peter Meldrum

Thank you, Geoff. As we indicated on the call, the revenue growth and the sample volume growth has remained strong compared to last year, up 47%. During the past quarter, we saw a very strong January followed by a weak February, and we think this was to a large extent explained because of the job loss, insurance loss, and economic downturn. Then we did see a nice rebound in March.

So we remain confident as a company, as Jim said, that for this fiscal year we'll exceed 48% revenue growth compared to last year. But as Jim also said, I don't think any company is immune to the recession, and I think we are currently seeing a dampening effect on our revenues, and that was reflected by the 4% total revenue growth quarter-over-quarter, compared to the double-digit quarter-over-quarter growth we saw in the December quarter.

Geoff Meacham - JPMorgan

Just a quick follow-up, Pete, is there any extrapolation from the trends in March going forward, either the sample flow or the revenue side?

Peter Meldrum

Again, the sample flow remains strong in April, and that precipitated our indicating that we'll feel very confidently that we'll achieve the 48% revenue growth for this fiscal year.

Operator

Our next question comes from the line of Charles Duncan with JMP Securities. Please proceed with your question.

Charles Duncan - JMP Securities

Pete, my question is related to a comparison of the Midwest Direct-to-Consumer campaign versus then in the south and northeast. Can you provide a little bit more color on the types of reimbursement patterns that you might see there? And the types of docs, et cetera, to really give us a sense as to how that Midwest DTC could perform relative to that in the northeast and south?

Peter Meldrum

I will talk a little bit about the Midwest campaign, but then I will ask Greg to provide a little more color in terms of reimbursement. The northeast campaign, which is the first campaign we did, represents about 12% of our revenue base, and the expense associated with that campaign was about $8.5 million. The south campaign was larger. It represents about 18% of our revenue base and costs about the same amount.

 

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