1. A Brief History of Myriad Genetics
Peter Meldrum, CEO of Myriad gives a brief history of Myriad Genetics. Led in this discussion by JMP Securities analyst Charles Duncan, Peter explains what made him want to start the company, and what differentiated it from all the other companies that sought to build on the genomic revolution. And even though Myriad Genetics has been a pioneer and a leader in the field of molecular diagnostics, it seems there is still a long way to go.
2. BRAC Analysis, Myriad Genetics’ Primary Revenue Driver
Two genes are responsible for the vast majority of hereditary breast and ovarian cancer. The BRAC Analysis diagnostic test can identify these genes and help physicians evaluate the breast and ovarian cancer risks with their patients. Peter Meldrum, discusses the significance of this test, the segments of patient population it serves, and the market size for the test. When Charles Duncan puts forward Myriad’s marketing strategy, Peter presents the rationale for his Direct To Consumer (DTC) television advertising, its effectiveness, and the regions of its future expansion.
3. Is a European Expansion to be Expected from Myriad Genetics? Checklist and Roadmap
Has the European expansion been delayed because of intellectual property or business question? When questioned by Charles Duncan, Peter Meldrum, CEO of Myriad Genetics explains the strategy which has been to establish a significant presence in the US, and then build the infrastructure necessary to capture the European market. We should expect a strong presence in the next 3 years.
4. Optimal Chemotherapy Dosing with OnDose, from Myriad Genetics
Myriad Genetics’ most recent personalized medicine product, OnDose, optimizes chemotherapy dosing for 5-FU regime. Charles Duncan inquires about the safety and efficacy gains from using OnDose vs. Body Surface Area (BSA) dosing. Peter Meldrum explains that OnDose uses pharmacokinetic analysis to measure the exposure each individual gets to the drug. This information can then be used by physicians to tailor the dosing and ensure their patients are in the optimal range. Quoting a Journal of Clinical Oncology study, an 80% reduction in toxic side effects and a doubling of response in terms of tumors shrinking were observed. Additionally, those who receive the OnDose dosing lived on average 6 months longer.
5. Myriad Genetics’ Latest Diagnostic (PROLARIS) Predicts Prostate Cancer Recurrence
On March 2nd, 2010, Myriad Genetics unveiled a diagnostic that can assess the risk of post-prostatectomy recurrence in men with prostate cancer. Charles Duncan asks Peter Meldrum about the clinical utility of the test, and the outlook for a PRE-prostatectomy diagnostic. It does indeed seem that too many prostatectomies are performed in the US (according to a NEJM study). Peter explains that Myriad Genetics just completed a study of its own that showed the diagnostic to be as predictive in pre-prostatectomy as in the post-prostatectomy. The pre-prostatectomy data was submitted to a peer reviewed journal and is expected to be published in the last quarter of 2010. As for reimbursement, PROLARIS has almost 100M lives under coverage, even though it is only a day old.
6. Patenting Genes: What if the ACLU Wins the Case Against Myriad Genetics?
In May of 2009 the ACLU filed a lawsuit against Myriad Genetics, challenging their patents on breast cancer genes. Charles Duncan asks Peter Meldrum of the implications of this case, and the impact on Myriad Genetics’ business model if the case is lost. From this point on Charles and Peter continue to discuss the numerous other competitive advantages of the company.
7. Financials: How is Myriad Genetics Planning to Return Cash to Investors?
Myriad Genetics is a profitable company that generates $150M cash per year, and has a great balance sheet. It would seem the lion’s share will be reinvested in the development of new products and expansion to new markets. Still, Charles Duncan asks how some of this cash will be returned to shareholders. Peter Meldrum explains the board of directors is currently evaluating sustainable cash dividends and sustainable stock repurchase programs.
This interview was conducted at the NASDAQ Marketsite, on March 3rd, 2010, in New York City.
Featuring:
DISCLAIMER: VIEWERS SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.
Related Videos: