Disappointment on the Alzheimer’s War (MYGN)
Myriad Genetics (NASDAQ: MYGN) is seeing pressure in shares this Monday morning. Shares are down nearly 10% around $43.30 in pre-market trading after the company announced that it plans to discontinue the development of Alzheimer treatment Flurizan. The company had reported that its late-stage trial failed to meet endpoints.
The company had also spent some $60 million in the fiscal year (June) in its development of Flurizan. The company also expects to spend roughly another $8 million to wrap up the program.
Its overseas partner in Denmark was H. Lundbeck A/S (HLUKY), and it also saw a similar drop in active trading.
Myriad isn’t a one-hit wonder as its quarterly revenues were $61.7 million last quarter. But this was a blow and the Alzheimer’s franchise here could have led to a blockbuster potential for the company. As of last quarter, the company had over $300 million between its cash and equivalents and its long-term investments; while its total liabilities were $37.66 million. Unfortunately, its market cap was over $2.1 Billion before today’s price action and its 52-week trading range is $34.35 to $59.18.
Jon C. Ogg
June 30, 2008