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Myriad Genetics (MYGN) Test Volume Rises Amid Margin Woe
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Myriad Genetics’ (MYGN - Free Report) strong product portfolio raises our optimism. The company’s impressive transformation and growth strategy also encourages us. Yet, emerging competitors and rising expenses continue to affect Myriad Genetics' performance. The stock carries a Zacks Rank #3 (Hold).
In the past year, Myriad Genetics has outperformed the industry it belongs to. The stock has gained 26.5% against the industry’s 5.2% fall.
Myriad Genetics exited the first quarter of 2023 with lower-than-expected earnings. However, revenues beat estimates. The company witnessed a strong testing volume improvement across all its businesses, with the Hereditary cancer testing franchise registering 32% year-over-year volume growth in the Women's Health segment.
Within the Mental Health segment, the GeneSight test also achieved a solid uptick in the quarter, bringing approximately 4,000 new clinicians to order the test for the first time. In 2023, MYGN plans to amplify the potential of its existing products, while maintaining a pipeline of new products in development.
Myriad Genetics’ collaboration with the medical imaging provider, SimonMeD is expected to advance precision medicine with a new hereditary cancer assessment program. Leveraging a custom-built Myriad tool developed in collaboration with SimonMed, the program will enable affordable access to genetic testing to identify and elevate high-risk patient care.
The company is well-poised to cash in on the huge potential of the breast cancer screening market. Per a report by Grand View Research on Medium, the breast cancer screening market in the United States is expected to reach a value of roughly $6.8 billion by 2028.
In the first quarter of 2023, Myriad Genetics’ Oncology business generated $77.6 million in revenues. Reported test volumes were approximately 50,000. Prolaris continued to see strong demand as first-quarter testing volumes increased 22% year over year. Hereditary cancer testing volume in oncology grew 16% in the quarter year over year.
On the flip side, during the first quarter, Myriad Genetics registered a gross margin contraction and an operating loss as a result of mounting costs and expenses. MYGN’s adjusted operating expenses for the quarter reflected investments in sales and marketing programs, technology, research and development, additional operating expenses from Gateway Genomics, and inflationary pressures.
Meanwhile, with the entry of new players, imminent price competition is another cause of concern. Per management, Myriad Genetics is currently facing competition in its key BRACAnalysis market. The company expects competition to intensify in its current fields with recently observed advancements in technology. Further, Myriad Genetics anticipates that other companies may also launch their own molecular diagnostic tests, which may compete with its testing products and services.
Moreover, Myriad Genetics receives a considerable portion of its revenues and pays a portion of its expenses in foreign currencies. As a result, the company remains at risk of exchange rate fluctuations between foreign currencies and the U.S. dollar.
Penumbra’s stock has surged 170.8% in the past year. The Zacks Consensus Estimate for Penumbra’s earnings per share (EPS) has remained constant at $1.56 for 2023 and $2.56 for 2024 in the past 30 days.
PEN’s earnings beat the consensus mark in each of the trailing four quarters, the average surprise being 109.42%. In the last reported quarter, the company registered an earnings surprise of 109.09%.
The Zacks Consensus Estimate for Lantheus’ 2023 EPS has remained constant at $5.60 in the past 30 days. Shares of the company have rallied 30.7% in the past year against the industry’s 22.2% decline.
LNTH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.77%. In the last reported quarter, the company recorded an earnings surprise of 13.95%.
Estimates for Haemonetics’ EPS for 2023 have increased from $3.55 to $3.56 in the past 30 days. Shares of the company have surged 26.1% in the past year against the industry’s 22.2% decline.
HAE’s earnings beat estimates in all of the trailing four quarters, the average surprise being 12.21%. In the last reported quarter, Haemonetics delivered an earnings surprise of 13.2%.
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Myriad Genetics (MYGN) Test Volume Rises Amid Margin Woe
Myriad Genetics’ (MYGN - Free Report) strong product portfolio raises our optimism. The company’s impressive transformation and growth strategy also encourages us. Yet, emerging competitors and rising expenses continue to affect Myriad Genetics' performance. The stock carries a Zacks Rank #3 (Hold).
In the past year, Myriad Genetics has outperformed the industry it belongs to. The stock has gained 26.5% against the industry’s 5.2% fall.
Myriad Genetics exited the first quarter of 2023 with lower-than-expected earnings. However, revenues beat estimates. The company witnessed a strong testing volume improvement across all its businesses, with the Hereditary cancer testing franchise registering 32% year-over-year volume growth in the Women's Health segment.
Within the Mental Health segment, the GeneSight test also achieved a solid uptick in the quarter, bringing approximately 4,000 new clinicians to order the test for the first time. In 2023, MYGN plans to amplify the potential of its existing products, while maintaining a pipeline of new products in development.
Myriad Genetics, Inc. Price
Myriad Genetics, Inc. price | Myriad Genetics, Inc. Quote
Myriad Genetics’ collaboration with the medical imaging provider, SimonMeD is expected to advance precision medicine with a new hereditary cancer assessment program. Leveraging a custom-built Myriad tool developed in collaboration with SimonMed, the program will enable affordable access to genetic testing to identify and elevate high-risk patient care.
The company is well-poised to cash in on the huge potential of the breast cancer screening market. Per a report by Grand View Research on Medium, the breast cancer screening market in the United States is expected to reach a value of roughly $6.8 billion by 2028.
In the first quarter of 2023, Myriad Genetics’ Oncology business generated $77.6 million in revenues. Reported test volumes were approximately 50,000. Prolaris continued to see strong demand as first-quarter testing volumes increased 22% year over year. Hereditary cancer testing volume in oncology grew 16% in the quarter year over year.
On the flip side, during the first quarter, Myriad Genetics registered a gross margin contraction and an operating loss as a result of mounting costs and expenses. MYGN’s adjusted operating expenses for the quarter reflected investments in sales and marketing programs, technology, research and development, additional operating expenses from Gateway Genomics, and inflationary pressures.
Meanwhile, with the entry of new players, imminent price competition is another cause of concern. Per management, Myriad Genetics is currently facing competition in its key BRACAnalysis market. The company expects competition to intensify in its current fields with recently observed advancements in technology. Further, Myriad Genetics anticipates that other companies may also launch their own molecular diagnostic tests, which may compete with its testing products and services.
Moreover, Myriad Genetics receives a considerable portion of its revenues and pays a portion of its expenses in foreign currencies. As a result, the company remains at risk of exchange rate fluctuations between foreign currencies and the U.S. dollar.
Key Picks
Some better-ranked stocks in the overall healthcare sector are Penumbra (PEN - Free Report) , Lantheus (LNTH - Free Report) and Haemonetics (HAE - Free Report) . Penumbra, Lantheus and Haemonetics each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Penumbra’s stock has surged 170.8% in the past year. The Zacks Consensus Estimate for Penumbra’s earnings per share (EPS) has remained constant at $1.56 for 2023 and $2.56 for 2024 in the past 30 days.
PEN’s earnings beat the consensus mark in each of the trailing four quarters, the average surprise being 109.42%. In the last reported quarter, the company registered an earnings surprise of 109.09%.
The Zacks Consensus Estimate for Lantheus’ 2023 EPS has remained constant at $5.60 in the past 30 days. Shares of the company have rallied 30.7% in the past year against the industry’s 22.2% decline.
LNTH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.77%. In the last reported quarter, the company recorded an earnings surprise of 13.95%.
Estimates for Haemonetics’ EPS for 2023 have increased from $3.55 to $3.56 in the past 30 days. Shares of the company have surged 26.1% in the past year against the industry’s 22.2% decline.
HAE’s earnings beat estimates in all of the trailing four quarters, the average surprise being 12.21%. In the last reported quarter, Haemonetics delivered an earnings surprise of 13.2%.