Product Revenue Up 53% in Fiscal 2008

SALT LAKE CITY, UT -- (Marketwire) -- 08/19/08 -- Myriad Genetics, Inc. (NASDAQ: MYGN) today reported financial results for its fourth quarter and fiscal year ended June 30, 2008.

Molecular diagnostic product revenues for fiscal 2008 increased to a record $222.9 million from $145.3 million for fiscal 2007, an increase of 53%. For the fourth quarter of fiscal 2008, molecular diagnostic revenues were $64.7 million, up 53% from $42.3 million in the fourth quarter of fiscal 2007. The BRACAnalysis® Public Awareness Campaign in the Northeast ended in March 2008, and without the benefit of the Campaign, fourth quarter molecular diagnostic product revenues still enjoyed a 10% quarter-to-quarter increase. These increases were due primarily to Myriad's strong sales and marketing efforts, which have resulted in increased demand for all of our molecular diagnostic products.

Total revenues for fiscal 2008 were $333.6 million, compared with $157.1 million for fiscal 2007. This 112% increase in total revenues for fiscal 2008 included a one-time $100 million up-front license payment from Lundbeck for European marketing rights to Flurizan. As of June 30, 2008, we had no further substantive obligations to Lundbeck, resulting in the entire $100 million upfront payment being recognized in the fourth quarter of our 2008 fiscal year.

The gross profit margin on molecular diagnostic revenues rose to 86% for the fourth quarter of fiscal 2008, from 82% in the fourth quarter last year, and was 85% for the fiscal year 2008, up 600 basis points from 79% for fiscal 2007. There have been no price increases for over two years, so the margin growth was primarily as a result of technology improvements and efficiency gains in the operation of our molecular diagnostics laboratory.

"This was another strong quarter and fiscal year for the Company, with revenues up 53% over last year," said Peter Meldrum, President and Chief Executive Officer of Myriad Genetics, Inc. "As the global leader in molecular diagnostics, we are continuing to expand our product portfolio and customer base. This exciting industry has the potential to save lives, guide the healthcare management of patients and reduce overall healthcare costs."

The earnings per share for the fourth quarter of fiscal 2008 was $1.47 basic and $1.40 fully diluted, compared with an $0.18 loss per share, from the fourth quarter of fiscal 2007. The net income for the fourth quarter was $65.5 million, compared with a net loss of $7.8 million in the fourth quarter last year. For the fiscal year ended June 30, 2008, the net income was $47.8 million, compared with a net loss of $35.0 million in fiscal 2007 and the earnings per share improved to $1.08 per basic share and $1.02 fully diluted, compared with a loss of $0.85 per share for fiscal 2007. The increases in earnings per share and net income were primarily due to the increase in molecular diagnostic revenue and the $100 million license payment from Lundbeck recognized in the fourth quarter of fiscal 2008, offset in part by increased expenses in connection with the U.S. open-label Flurizan trial and the Global Phase 3 Flurizan trial.

Research and development expenses for the quarter ended June 30, 2008 were $55.2 million compared to $24.8 million for the same period in 2007. The fourth quarter of 2008 includes a one-time license fee expense of $20 million that was accrued to reflect the maximum amount that may be payable by Myriad under the license agreements for Flurizan. The balance of research and development expense recognized during the June 2008 quarter was primarily comprised of the costs associated with our preclinical and clinical pharmaceutical studies, including the U.S. open-label Flurizan trial, the Global Phase 3 Flurizan trial and the data collection and analysis of the U.S. Phase 3 Flurizan trial. Also included in these expenses were approximately $3 million of one-time costs associated with the termination of the Flurizan program. Research and development expense for fiscal 2008 was $139.7 million compared with $98.7 million for the same period in the prior year.

Selling, general and administrative expenses for the quarter ended June 30, 2008 were $36.4 million compared to $30.2 million for the prior quarter, ended March 31, 2008. The increase over the prior quarter was attributable to costs necessary to support the double-digit, quarter-to-quarter sales growth and to several new marketing initiatives, including approximately $2 million for the initiation of the BRACAnalysis Public Awareness Campaign in the Southern region and approximately $5 million of costs associated with the preparation for a Flurizan launch. Selling, general and administrative expenses were $123.5 million in fiscal 2008, up from $75.4 million in fiscal 2007. This increase was primarily due to support of our 53% revenue growth, expansion of our sales force in the women's health sector, costs related to our BRACAnalysis Public Awareness Campaign, costs associated with preparation for a product launch of Flurizan and 123 (R) non-cash stock option expenses.

Myriad continues to maintain a strong cash position, and as of June 30, 2008, the Company had approximately $420 million in cash, cash equivalents and marketable investment securities, as compared to $308 million as of June 30, 2007. The company has no debt and no convertible securities.

Myriad's present strategy of combining a profitable, rapidly growing molecular diagnostic business with significant pharmaceutical opportunities has served the Company well.