Myriad ended fourth-quarter fiscal 2015 on a satisfactory note as its bottom line met the Zacks Consensus Estimate while the top line closely beat the same. On an encouraging note, Myriad successfully returned to positive top-line growth in the fourth quarter, after having witnessed substantial declines in its revenue numbers consecutively since the beginning of fiscal 2015. Added to that, Myriad recently received the final Medicare local coverage determination (LCD) for its Prolaris test. The final reimbursement coverage for this significant prostate cancer test of Myriad, after a long wait, comes as a great relief to investors as well as the company. The reimbursement will provide coverage to all low and very low-risk prostate cancer patients with life-expectancy of 10 years or more, with effect from Oct 15, 2015. During the fourth quarter, the company also made consistent progress toward its goal of becoming the global leader in companion diagnostics for DNA damaging agents. Evidently, Myriad’s first companion diagnostic – BRACAnalysis CDx – used in identifying ovarian cancer patients, observed sequential volume growth of 40% in the quarter. We believe these developments will boost the prospects of the company in the long term. Further, in the reported quarter, Myriad’s myRisk Hereditary Cancer revenues improved a massive 269.6% on a year-over-year basis. Myriad also witnessed rapidly increasing domestic demand for its myRisk test, while internationally, myRisk comprised 32% of Myriad’s hereditary cancer revenues. On the flip side, a strengthening U.S. dollar is expected to adversely affect the company’s international business. Moreover, management does not currently utilize hedging strategies to mitigate foreign currency risk. To add to the woes, emerging competitors and pricing pressure may plague Myriad’s stock in the near future. Currently, Myriad carries a Zacks Rank #3 (Hold). Key Picks in the Sector Some better-ranked stocks in the med-biomed/generic space are AMAG Pharmaceuticals, Inc. AMAG, Gilead Sciences Inc. GILD and Neogenomics Inc. NEO. All the three stocks sport a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GILEAD SCIENCES (GILD): Free Stock Analysis Report AMAG PHARMA INC (AMAG): Free Stock Analysis Report MYRIAD GENETICS (MYGN): Free Stock Analysis Report NEOGENOMICS INC (NEO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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