Myriad Genetics said today that it will proceed with a planned spin-off of it's R&D business form its molecular diagnostics group. The diagnostics business will continue to operate under the name Myriad Genetics, while it's research and drug development arm will become Myriad Pharmaceuticals. Eight hundred employees will stay with Myriad Genetics, which will focus on on maximizing its predictive and personalized medicine pipeline. Myriad Pharmaceuticals will employ 200 people to work on four drug candidates in human clinical trials.
In September the company underwent a review to determine if the two businesses would work better independently. The move comes after Myriad Flurizan--a potential Alzheimer's treatment, hit a snag in clinical trial development. Currently, most of the company's revenue comes from its molecular diagnostics business.
"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, CEO of Myriad Genetics. "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."
- here's Myriad's release