Myriad Genetics, Inc. Board of Directors has authorized management to proceed with preparations to spin off its research and drug development businesses from its molecular diagnostics business to form two well-capitalized, highly-focused, independent public companies.
The molecular diagnostics business will operate under the name Myriad Genetics, Inc., and the research and drug development businesses will operate under the name Myriad Pharmaceuticals, Inc. The transaction is intended to enable each of the companies to excel in their respective fields, acknowledging the different needs of a high-growth, profitable molecular diagnostics business and a pharmaceutical research and development business.
The spin-off will be completed as a pro-rata dividend distribution to shareholders of Myriad Genetics, Inc. The dividend distribution would be tax free to Myriad Genetics and its shareholders and take place during the 2Q 2009 ending June 30.
It is currently anticipated that Myriad Genetics, Inc. stock will be traded on the New York Stock Exchange under the ticker symbol "MGX", and Myriad Pharmaceuticals, Inc., as a new publicly traded company, will be listed on the NASDAQ Global Market under the Company's current ticker symbol "MYGN".
"By separating these unique businesses into two highly focused companies, we believe we will be able to unlock the intrinsic value of both business opportunities and create greater value than under our current structure," said Peter Meldrum, President and Chief Executive Officer of Myriad Genetics, Inc. "Each company will be able to pursue its long-term strategic initiatives, maximize its core technology strengths, seek new product opportunities, have a capital structure appropriate for its financial profile, and compete more effectively in its respective markets."
After the spin-off transaction, Myriad Genetics, Inc. will be a global leader in the field of molecular diagnostics, with approximately 800 employees and five marketed products -- BRACAnalysis, COLARIS, COLARIS AP, MELARIS, and TheraGuide(TM) 5-FU. It will concentrate on maximizing its core strengths in predictive and personalized medicine.
Myriad Genetics' business has strong fundamentals, including excellent top-line revenue growth, attractive gross profit and net operating profit margins, a strong balance sheet, and a healthy diagnostic product pipeline.
The biotechnology company resulting from the spin-off, Myriad Pharmaceuticals, Inc., will employ approximately 200 individuals and will pursue research collaborations and the development of unique, best-in-class therapeutic candidates in the areas of cancer and infectious diseases. Myriad Pharmaceuticals currently has four drug candidates in human clinical trials (Axiza, Vivecon, MPC-2130 and MPC-0920), and over Myriad's history, its research and drug development business has completed 12 strategic collaborations with major pharmaceutical companies to date. Myriad Pharmaceuticals' business will be well capitalized, with a strong cash position to leverage its technology platform, pursue new therapeutic strategies for life-threatening diseases, and seek to maximize its commercial opportunities.
Myriad has retained J.P. Morgan as its financial advisor, Mintz Levin Cohn Ferris Glovsky and Popeo, P.C. as its legal advisor, and Ernst & Young as its accounting and tax advisor.
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