Myriad Genetics' fourth-quarter profit beats estimates

Tue Aug 13, 2013 4:42pm EDT

(Reuters) - Molecular diagnostics company Myriad Genetics Inc (MYGN.O) reported a fourth-quarter profit that handily beat analysts' estimates, helped by higher sales of its breast and ovarian cancer detection test.

Shares of the company rose 5 percent to $31.65 in trading after the bell.

Net income rose to $44.1 million, or 53 cents per share, from $29.1 million, or 34 cents per share, a year earlier.

Revenue rose 31 percent to $174.1 million in the quarter ended June 30.

The company generated revenue of $129.6 million from the BRACAnalysis test, which looks for two genes linked to hereditary breast and ovarian cancer.

Analysts on average had expected earnings of 44 cents per share on revenue of $159.9 million, according to Thomson Reuters I/B/E/S.

The company expects a profit of $1.87-$1.94 per share in fiscal 2014 on revenue of $690 million to $710 million.

In June, Myriad won a partial victory in a controversial lawsuit that challenged the validity of the company's patents over two genes linked to hereditary breast and ovarian cancer.

Myriad argued that the patents were valid as it had chemically altered the DNA and the genes were not naturally occurring.

The U.S. Supreme Court ruled that human genes cannot be patented unless they are produced synthetically. Industry analysts had said at the time that the company's most important patents had been upheld, protecting its BRACAnalysis test.

(Reporting By Vrinda Manocha in Bangalore; Editing by Sreejiraj Eluvangal)

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