SALT LAKE CITY, May 17, 2010 (GLOBE NEWSWIRE) -- Myriad Pharmaceuticals, Inc. (Nasdaq:MYRX) today reported financial results for its third fiscal quarter ended March 31, 2010. The Company ended the quarter with $148.4 million in cash, cash equivalents and marketable securities and subsequently received a payment of $12.7 million from Javelin Pharmaceuticals, Inc. pursuant to the termination of the proposed merger agreement between the companies.
"We were disappointed that the merger agreement with Javelin was terminated and continue to believe that there was great potential for synergy between the two companies. However, throughout the merger discussions, we maintained our financial discipline and commitment to the advancement of our clinical and pre-clinical pipeline," said Adrian N. Hobden Ph.D., President and CEO of Myriad Pharmaceuticals, Inc. "Moving forward, we will focus our resources and strong cash position on optimizing the value of our clinical drug candidates and further advancing our promising pre-clinical opportunities, such as the nicotinamide phosphoribosyltransferase (Nampt) inhibitor, recently announced at AACR, which targets a novel cancer metabolism enzyme," continued Dr. Hobden.
A summary of activity is as follows:
Recent Accomplishments and Business Update
Upcoming Events:
- June 4-8, 2010, the Company expects to report results from two ongoing Phase 2 trials of Azixa(TM) (MPC-6827), in metastatic melanoma in combination with temozolomide and in recurrent glioblastoma ("GBM") in combination with carboplatin, at the American Society for Clinical Oncology ("ASCO") meeting in Chicago. In addition, an abstract describing the updated result of the Phase 1 clinical trial of MPC-3100 will be published on www.asco.org and www.jco.org in a fully searchable format.
- In the second half of 2010 we expect to complete and to report final results of our Phase 1 clinical trial investigating the safety, tolerability and pharmacokinetics of MPC-3100.
Recent Events:
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On April 16, 2010, our proposed merger agreement with Javelin Pharmaceuticals Inc. was terminated. In accordance with the terms of the merger agreement, on April 19, 2010, Javelin paid MPI stipulated expenses of $1.5 million plus a termination fee of $2.9 million. In addition, Javelin paid MPI approximately $8.3 million, representing all amounts owed under a loan and security agreement.
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In April 2010, the Company reported progress on multiple preclinical research programs, including: data characterizing MPI-0486348, the lead compound in the Company's nicotinamide phosphoribosyltransferase (Nampt) inhibitor program at the American Association for Cancer Research (AACR) 101st Annual Meeting in Washington, D.C. and the Company's IKK epsilon program at the Federation of American Societies for Experimental Biology meeting in Anaheim, CA.
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On April 22, 2010 the stockholders of the Company approved a change of the Company's name to Myrexis Inc. The Company expects to effect the name change at a future date.
- On February 19, 2010, the Company reported results from two completed drug interaction Phase 1 clinical trials of MPC-4326, the Company's first-in-class small molecule inhibitor of HIV-1 maturation, at the 17th Conference on Retroviruses and Opportunistic Infections, CROI 2010, in San Francisco.
Third Quarter Fiscal 2010 Financial Results (Unaudited)
The financial results for the quarter ended March 31, 2010 represent the third full quarter of operations for Myriad Pharmaceuticals, Inc. as an independent company since its spin-off from Myriad Genetics, Inc. (Nasdaq:MYGN) on June 30, 2009. The results for the three and nine months ended March 31, 2009 were derived from Myriad Genetics' historical consolidated financial statements.
Myriad Pharmaceuticals ended the quarter with $148.4 million in cash, cash equivalents and marketable investment securities. During the three months ended March 31, 2010, the Company used $13.5 million in cash to fund operating activities, including the payment of certain transaction expenses incurred in connection with the proposed merger with Javelin. In addition, the Company used approximately $6.3 million in cash to fund loans to Javelin pursuant to a loan and security agreement. On April 5, 2010, we loaned Javelin an additional $2 million under the loan and security agreement. On April 19, 2010, pursuant to the termination of the merger agreement, Javelin paid us a total of $12.7 million which included, stipulated expenses of $1.5 million, a termination fee of $2.9 million and approximately $8.3 million, representing all amounts then owed under the loan and security agreement.
Research revenue of $30,000 was recognized during the three months ended March 31, 2010 compared to $1.0 million in the same quarter last year. Research revenue in the prior year period reflects revenue earned pursuant to a long-term genomic sequencing research collaboration and a long-term research agreement to characterize protein - protein interactions. Both of these long-term collaboration agreements were completed during the fiscal year ended June 30, 2009.
Research and development expenses for the three months ended March 31, 2010 were $7.2 million compared to $13.4 million in the same period last year. This 47% decrease was primarily due to decreased internal costs of approximately $6.9 million, resulting from the reduction of headcount and other activities related to our former drug candidate Flurizan.
We expect our research and development expenses will fluctuate over the next several years as we conduct additional clinical trials to support the development of our potential drug candidates currently in clinical development and the possible advancement of certain pre-clinical drug candidates into clinical development.
Selling, general and administrative expenses for the three months ended March 31, 2010 were $6.9 million, compared to $2.6 million in the prior year period. This increase in selling, general and administrative expenses during the current period was due primarily to the costs and expenses associated with being a separate, stand-alone publicly traded entity. In addition, there were costs incurred in the three months ended March 31, 2010 associated with due diligence, and legal, accounting and investment banking fees incurred in connection with the proposed merger with Javelin. Amounts included in the prior year period for general and administrative costs include some proportional cost allocations of certain common costs of Myriad Genetics because these expenses were not specifically identified at the subsidiary level.
Other income of $0.4 million for the three months ended March 31, 2010 reflects interest income and realized gains on our marketable investment securities. We had no other income or expense prior to June 30, 2009, since all cash and investments were held and managed by Myriad Genetics. Accordingly, cash used to pay our expenses or cash collected from collaboration agreements was provided or received by Myriad Genetics on our behalf and was recorded as an increase or decrease in the Myriad Genetics net investment / (capital deficiency).
For the purpose of preparing the financial statements for MPI for the three and nine months ended March, 2009, which were derived from Myriad Genetics' historical consolidated financial statements, research expenses of MPI were determined on a specific identification basis and also include some proportional allocations of certain common costs of Myriad Genetics which were not specifically identified at the subsidiary level. Operating expenses also include similar proportional allocations related to administrative, information technology and facilities costs.
| MYRIAD PHARMACEUTICALS, INC. | ||||
| Statements of Operations (Unaudited) | ||||
| (In thousands, except per share amounts) | ||||
| Three Months Ended March 31, | Nine Months Ended March 31, | |||
| 2010 | 2009 | 2010 | 2009 | |
| Research revenue | $30 | $956 | $90 | $5,064 |
| Costs and expenses: | ||||
| Research and development expense | 7,190 | 13,401 | 21,287 | 41,697 |
| Selling, general, and administrative expense | 6,926 | 2,634 | 19,090 | 7,157 |
| Total costs and expenses | 14,116 | 16,035 | 40,377 | 48,854 |
| Operating loss | (14,086) | (15,079) | (40,287) | (43,790) |
| Other income, net | 363 | — | 1,143 | — |
| Net loss | $(13,723) | $(15,079) | $(39,144) | $(43,790) |
| Loss per basic and diluted share | $(0.56) | $(0.63) | $(1.60) | $(1.83) |
|
Weighted-average shares used to compute net loss per basic and diluted share |
24,603 | 23,974 | 24,400 | 23,974 |
| MYRIAD PHARMACEUTICALS, INC. | ||
| Balance Sheets (Unaudited) | ||
| (In thousands, except per share amounts) | ||
| March 31, 2010 | June 30, 2009 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $30,764 | $128,372 |
| Marketable investment securities | 110,961 | 40,728 |
| Accounts receivable | 36 | — |
| Prepaid expenses | 507 | 240 |
| Other current assets | 7,454 | — |
| Total current assets | 149,722 | 169,340 |
| Equipment | 6,509 | 5,338 |
| Less accumulated depreciation | 809 | — |
| Net equipment | 5,700 | 5,338 |
| Long-term marketable investment securities | 6,636 | 18,905 |
| Other assets | 206 | 94 |
| $162,264 | $193,677 | |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Trade accounts payable | $2,292 | $ — |
| Accrued liabilities | 4,357 | 4,576 |
| Total current liabilities | 6,649 | 4,576 |
| Commitments and contingencies | ||
| Stockholders' equity: | ||
| Preferred stock, $0.01 par value, authorized 5,000 shares; no shares issued and outstanding | — | — |
| Common stock, $0.01 par value, authorized 60,000 shares; 24,624 shares issued and outstanding at March 31, 2010; 23,974 shares issued and outstanding at June 30, 2009 | 246 | 240 |
| Additional paid-in capital | 194,386 | 188,400 |
| Accumulated other comprehensive income | 127 | 461 |
| Accumulated deficit | (39,144) | — |
| Total stockholders' equity | 155,615 | 189,101 |
| $162,264 | $193,677 | |
About Myriad Pharmaceuticals:
Myriad Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on discovering, developing, and commercializing novel small molecule drugs that address severe medical conditions, including cancer and HIV infection. Our pipeline includes clinical and pre-clinical product candidates with distinct mechanisms of action and novel chemical structures that have the potential to be first-in-class and/or best-in-class therapeutics. For more information visit www.myriadpharma.com.
Azixa, Flurizan and the Myriad Pharmaceuticals logo are trademarks or registered trademarks of Myriad Pharmaceuticals, Inc. in the United States and foreign countries.
The Myriad Pharmaceuticals, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6327
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the expected timing of results and development of our drug candidates and related expenses. These "forward-looking statements" are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by forward-looking statements. These risks and uncertainties include, but are not limited to: the risk that we may be unable to further identify, develop and achieve commercial success for new products and technologies; the risk that we may be unable to discover drugs that are safer and more efficacious than our competitors; the risk that we may be unable to develop and maintain manufacturing capabilities for our products; the possibility of delays in the research and development necessary to select drug development candidates and delays in clinical trials; the risk that clinical trials may not result in marketable products; the risk that we may be unable to successfully finance and secure regulatory approval of and market our drug candidates, or that clinical trials will not be completed on the timelines we have estimated; uncertainties about our ability to obtain new corporate collaborations and acquire new technologies on satisfactory terms, if at all; the development of competing products and services; the risk that we may be unable to protect our proprietary technologies; the risk of patent-infringement claims; risks of new, changing and competitive technologies and regulations in the United States and internationally; and other factors discussed under the heading "Risk Factors" contained in our Form 10-K, for the year ended June 30, 2009, which was filed with the Securities and Exchange Commission on September 28, 2009, as well as any updates to those risk factors filed from time to time in our Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. All information in this press release is as of the date of the release, and Myriad Pharmaceuticals undertakes no duty to update this information unless required by law.