On Feb 8, we issued an updated research report on Salt Lake City, UT-based molecular diagnostic company Myriad Genetics Inc. (MYGN - Free Report) .
The company recently posted stellar second-quarter fiscal 2017 results with both earnings and revenues beating the Zacks Consensus Estimate. Revenues in the quarter touched the highest level in the last three years, driven by a return to sequential growth in hereditary cancer revenues and strong GeneSight results. Myriad observed strong growth in both Prolaris and Vectra DA testing revenues.
To date, the company has made significant progress with its strategic initiatives which include transition and expansion in the hereditary cancer market, diversification of revenues by commercializing its new products and increasing of the company’s international contribution by investing in large countries.
As a result of the first strategy, hereditary cancer revenues grew 3% sequentially in the second quarter of 2017. Management is currently taking steps to stabilize this business segment. For this, the company recently signed an agreement with Highmark Blue Cross Blue Shield.
As per the second approach, Myriad was successful in obtaining strong top-line growth from its Vectra DA and Prolaris tests. In particular, the company has been engaged in the commercialization of its products including Vectra DA, Prolaris, myPath Melanoma, Myriad’s Companion Diagnostics, EndoPredict and myPlan Lung Cancer test. In line with the third plan, Myriad’s international contribution to total revenues was 5% in the reported quarter, exhibiting an increase from last year’s 4%. Management aims to raise this figure to 10% by fiscal 2020.
During the reported quarter, Myriad made significant progress in relation to the six core products included in its five-year plan: Vectra DA, Prolaris, myPath Melanoma, Companion Diagnostics, EndoPredict and myPlan Lung cancer tests.
Volumes for Prolaris test improved an exceptional 33% year over year, presenting a global addressable market of $1.5 billion and a current reimburse market worth $280 million in the U.S. Also, Myriad presented clinical validation study for myPath Melanoma at the American Society of Dermatopathology meeting which is expected to be published in the near term.
On the flip side, Myriad’s gross margin scenario in the second quarter has been disappointing. Also, the company’s slashed guidance for fiscal 2017 is discouraging. The concerns are reflected in the company’s deteriorating share price as well. We note that, over the past three months, the company traded almost in line with the Zacks Categorized Medical - Biomedical and Genetics industry.
However, after the company’s announcement of a dull fiscal 2017 guidance, the price trend was disturbed. The company is currently underperforming with a loss of 4.89%, wider than the broader industry’s decline of 4.5%.
The presence of a large number of players has made the biomedical and genetics market intensely competitive. This compels Myriad to constantly innovate its products to maintain market share. Also, currency headwinds and higher expenses owing to extensive pipeline of tests add to its woes.
Zacks Rank & Key Picks
Myriad currently has a Zacks Rank #3 (Hold). Better-ranked medical stocks are Glaukos Corp. (GKOS - Free Report) , Cardiovascular Systems and Neogen Corp. (NEOG - Free Report) . Glaukos sports a Zacks Rank #1 (Strong Buy) while Cardiovascular Systems and Neogen carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos gained over 100% in the last one year in comparison to the S&P 500’s gain of only 23.9%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 32.3% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth rate of 16.7% for the next five years compared to the industry average of 15.2%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
On Feb 8, we issued an updated research report on Salt Lake City, UT-based molecular diagnostic company Myriad Genetics Inc. (MYGN - Free Report) .
The company recently posted stellar second-quarter fiscal 2017 results with both earnings and revenues beating the Zacks Consensus Estimate. Revenues in the quarter touched the highest level in the last three years, driven by a return to sequential growth in hereditary cancer revenues and strong GeneSight results. Myriad observed strong growth in both Prolaris and Vectra DA testing revenues.
To date, the company has made significant progress with its strategic initiatives which include transition and expansion in the hereditary cancer market, diversification of revenues by commercializing its new products and increasing of the company’s international contribution by investing in large countries.
As a result of the first strategy, hereditary cancer revenues grew 3% sequentially in the second quarter of 2017. Management is currently taking steps to stabilize this business segment. For this, the company recently signed an agreement with Highmark Blue Cross Blue Shield.
As per the second approach, Myriad was successful in obtaining strong top-line growth from its Vectra DA and Prolaris tests. In particular, the company has been engaged in the commercialization of its products including Vectra DA, Prolaris, myPath Melanoma, Myriad’s Companion Diagnostics, EndoPredict and myPlan Lung Cancer test. In line with the third plan, Myriad’s international contribution to total revenues was 5% in the reported quarter, exhibiting an increase from last year’s 4%. Management aims to raise this figure to 10% by fiscal 2020.
During the reported quarter, Myriad made significant progress in relation to the six core products included in its five-year plan: Vectra DA, Prolaris, myPath Melanoma, Companion Diagnostics, EndoPredict and myPlan Lung cancer tests.
Volumes for Prolaris test improved an exceptional 33% year over year, presenting a global addressable market of $1.5 billion and a current reimburse market worth $280 million in the U.S. Also, Myriad presented clinical validation study for myPath Melanoma at the American Society of Dermatopathology meeting which is expected to be published in the near term.
On the flip side, Myriad’s gross margin scenario in the second quarter has been disappointing. Also, the company’s slashed guidance for fiscal 2017 is discouraging. The concerns are reflected in the company’s deteriorating share price as well. We note that, over the past three months, the company traded almost in line with the Zacks Categorized Medical - Biomedical and Genetics industry.
However, after the company’s announcement of a dull fiscal 2017 guidance, the price trend was disturbed. The company is currently underperforming with a loss of 4.89%, wider than the broader industry’s decline of 4.5%.
The presence of a large number of players has made the biomedical and genetics market intensely competitive. This compels Myriad to constantly innovate its products to maintain market share. Also, currency headwinds and higher expenses owing to extensive pipeline of tests add to its woes.
Zacks Rank & Key Picks
Myriad currently has a Zacks Rank #3 (Hold). Better-ranked medical stocks are Glaukos Corp. (GKOS - Free Report) , Cardiovascular Systems and Neogen Corp. (NEOG - Free Report) . Glaukos sports a Zacks Rank #1 (Strong Buy) while Cardiovascular Systems and Neogen carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos gained over 100% in the last one year in comparison to the S&P 500’s gain of only 23.9%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 32.3% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth rate of 16.7% for the next five years compared to the industry average of 15.2%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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