October 21, 2008
Myriad Genetics to Spin Off Drug Development Business
Myriad Genetics, a molecular diagnostic company, has announced that its 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 R&D business.It is anticipated that the proposed spin-off will be completed as a pro-rata dividend distribution to shareholders of Myriad Genetics. Myriad plans to seek an independent opinion that the dividend distribution would be tax free to Myriad Genetics and its shareholders.
After the spin-off transaction, Myriad Genetics, Inc will have approximately 800 employees and five marketed products - BRACAnalysis, Colaris, Colaris AP, Melaris, and TheraGuide 5-FU. It will concentrate on maximizing its core strengths in predictive and personalized medicine.
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.
Peter Meldrum, president and CEO of Myriad Genetics, said: "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.
"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."