Recently, Myriad Genetics Inc. (MYGN - Analyst Report) launched its major pipeline product myRisk Hereditary Cancer. The company’s latest offering is a multi-gene diagnostic test to analyze 25 genes related with eight major cancers – breast, ovarian, prostate, colorectal, endometrial, gastric, pancreatic and melanoma.
We note that the launch of myRisk Hereditary Cancer at the onset of fiscal 2014 is in line with Myriad’s timeline. This pan-cancer panel test marks a pioneering venture in the field of molecular diagnostics.
Myriad is launching myRisk Hereditary Cancer in a phased approach, starting from an early-access, clinical-experience program to a finite number of medical and scientific superiors. The company will then begin an expanded access program later in the year.
In order to boost acceptance of the novel test, Myriad plans to demonstrate positive clinical validity data on myRisk Hereditary Cancer diagnostic test at The Collaborative Group of the Americas’ annual meeting on Inherited Colorectal Cancer (CGA) in October and the San Antonio Breast Cancer Symposium later in December.
Earlier in May this year, Myriad revealed its plan to launch myRisk Hereditary Cancer test, the foremost comprehensive pan-cancer panel test. At first, the company will target cancers of the breast, colon, ovaries, endometrium, pancreas and melanoma. Later, the company plans to extend the test application to lung, prostate and other types of cancer.
As reported earlier, Myriad expects to keep the list price of myRisk Hereditary Cancer test in the range of $4,000−$4,500. The test has an estimated gross margin of about 87%.
The test will enable the company to serve a huge market opportunity of $5 billion in 2018 following Myriad’s expansion phase. As per the company, the time period 2013-2015 will be the conversion phase towards the pan-cancer panel. Evidently, the company plans to transform the entire hereditary cancer market through fiscal 2015 as it will discontinue its major legacy products (Bracanalysis, Colaris, Colaris AP, Melaris and Panexia) following the conversion of the market towards myRisk.
Per management, Myriad’s pan-cancer panel is credited to be a substantial positive catalyst to foster long-term growth. Further, we believe that the concept of a novel pan-cancer panel should dilute Myriad’s dependence on its current flagship Bracanalysis test. We are hopeful that expansion of indications on myRisk will accelerate growth over the long haul.
Currently, the stock carries a Zacks Rank #2 (Buy). Other stocks that warrant a look are Actelion Ltd. (ALIOF - Snapshot Report), Affymetrix Inc. (AFFX - Analyst Report) and Biogen Idec Inc. (BIIB - Analyst Report). These stocks carry Zacks Rank #1 (Strong Buy).