On Sep 21, we issued an updated research report on Myriad Genetics, Inc. MYGN – a leading molecular diagnostics company in the U.S.
Myriad Genetics recently presented positive data from studies involving its myPlan Lung Cancer prognostic test. The first case study demonstrated the effectiveness of myPlan test in identifying more lung cancer stage IB patients, who are at high-risk of disease progression, compared to those identified using National Comprehensive Cancer Network’s (NCCN) guidelines. The second study validated the analytical superiority of the myPlan Lung Cancer test.
Meanwhile, Myriad’s receipt of the final Medicare local coverage determination (LCD) for its Prolaris testcomes as a great relief to investors as well as the company, after a long wait. During its last reported fourth-quarter fiscal 2015, Myriad’s Vectra DA test revenues improved considerably onstrong volumes. Currently, management is proceeding withthe long-term strategy to expand private payer coverage for Vectra DA which will increase the market potential for this test from $600 million per year to $1.5 billion per year in the U.S.
Also, withinits Urology business, the company witnessed strong volume growth for its Prolaris test. During the fourth quarter, Myriad presented final data from the landmark PROCEDE 1000 study which reflected a 48% change in treatment recommendations, with 35% of patients observing a reduction in treatment recommendation.
On the flip side, a strengthening U.S. dollar is expected to affect the company’s international business. Moreover, management does not currently utilize hedging strategies to mitigate foreign currency risks. To add to the woes, emerging competitors and pricing pressure are expected to remain overhangsin 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 Medivation, Inc. MDVN, Gilead Sciences Inc. GILD and Neogenomics Inc. NEO. All the three stocks sport a Zacks Rank #1 (Strong Buy).
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