The Wall Street Journal-20080206-Myriad Genetics Considers Expanding Ad Campaign for Cancer-Gene Test

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Myriad Genetics Considers Expanding Ad Campaign for Cancer-Gene Test

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A contentious ad campaign for Myriad Genetics Inc.'s breast-cancer gene test has attracted customers and increased sales for several products, the company said, and the effort may be expanded.

Some in the medical community have criticized the radio and television spots as oversimplifying risks and benefits of the test, which costs as much as $3,000. Connecticut Attorney General Richard Blumenthal last fall began investigating whether the ads target consumers who aren't really at increased risk of the disease. The ads were first aired in the Northeast five months ago.

"The direct-to-consumer campaign is having an impact," said Chief Executive Peter Meldrum. Gene-test sales rose about 55% to $53.1 million in its second quarter ended Dec. 31, up from $34.2 million in the year-earlier period.

Profit margins rose to 86% due to lab efficiencies and robotics, Mr. Meldrum said. After pouring test profits back into developing drugs for cancer, AIDS and Alzheimer's disease, Myriad posted a net loss of $5.1 million, or 11 cents a share, compared with a loss of $8.8 million, or 22 cents a share, a year ago.

The Salt Lake City company said the ads helped to double the time visitors to Myriad's Web site spent on pages devoted to tests for mutations in BRCA1 and BRCA2 genes, which Myriad says can raise lifetime risk of breast cancer as much as 87% and ovarian cancer as much as 44%.