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Myriad Genetics (MYGN) Unveils GeneSight Test Enhancement

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Myriad Genetics, Inc. (MYGN - Free Report) recently announced improvements to the GeneSight Psychotropic test, a pharmacogenomic test for drugs used to treat mental illness. The GeneSight report will now contain details on how a patient's smoking history may affect their metabolism of certain medications.

The recent development will bolster Myriad Genetics’ Oncology testing business.

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For nearly 91% of patients with the CYP1A2 variant, the categorization and information provided for certain medications can be affected by smoking status. According to GeneSight research, smoking is the habitual inhaling of burning plant matter (like marijuana and cigarettes). E-cigarettes and vaping are not covered.

In addition to genetics, several other factors may affect treatment results. Smoking is one of such risks because, in people with the highly inducible CYP1A2 mutation, it can increase the activity of CYP1A2, a gene implicated in the metabolism of several drugs for mental health.

A third of the drugs on the GeneSight report have CYP1A2 involvement, suggesting that their classification may change depending on the patient's smoking history. Several antidepressants, anxiolytics, hypnotics, and antipsychotics are among the 23 drugs on this list.

Significance of New Test

The Centres for Disease Control and Prevention (CDC) report that persons with depression or other mental health issues are more likely than the general population to smoke cigarettes. The American Lung Association reports that "patients who are diagnosed with major depressive disorder (59%) have higher lifetime smoking rates.

Taking smoking status into account ensures the test gives an even more thorough picture of the patients' probable consequences while taking particular medications. This update was made in light of a thorough evaluation of peer-reviewed literature and the ongoing dedication to offering clinicians genetic information from the GeneSight test to assist in treatment decisions.

Industry Prospects

Per a report by Mordor Intelligence, the pharmacogenomics market size is expected to grow from $8.17 billion in 2023 to $11.00 billion by 2028 at a CAGR of 6.12%. The market is driven by the rising popularity of precision medicine coupled with growing research and development expenditure on pharmacogenomics technologies, giving rise to the fast development of novel products. The high incidence rate of adverse drug reactions also leads to the higher adoption of pharmacogenomics in the global market.

Recent Developments

In June 2023, Myriad Genetics entered a research agreement with The University of Texas MD Anderson Cancer Center. Through the collaboration, Myriad will support MD Anderson researchers studying metastatic renal cell carcinoma (RCC) treatment selection and response.

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The latest project will utilize MYGN’s minimal residual disease (MRD) testing platform, a tumor-informed high-definition assay that detects circulating tumor DNA (ctDNA). The MRD test can be used to monitor ctDNA levels during both treatment and surveillance following diagnosis.

In May 2023, Myriad Genetics announced the addition of Folate Receptor Alpha to its Precise Oncology Solutions portfolio. The new biomarker adds another companion diagnostic option for providers to help guide treatment decisions for patients with ovarian cancer.

Price Performance

In the past six months, MYGN shares have declined 12% compared with the industry’s fall of 10.3%.

Zacks Rank and Key Picks

Myriad Genetics currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Penumbra, Inc. (PEN - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .

Penumbra, carrying a Zacks Rank of 1 (Strong Buy), reported second-quarter 2023 adjusted EPS of 43 cents, beating the Zacks Consensus Estimate by 53.6%. Revenues of $261.5 million outpaced the consensus mark by 3.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Penumbra has an estimated 2024 growth rate of 57.9%. PEN’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 94.2%.

Integer Holdings reported second-quarter 2023 adjusted EPS of $1.14, beating the Zacks Consensus Estimate by 15.2%. Revenues of $400 million surpassed the Zacks Consensus Estimate by 8.9%. It currently carries a Zacks Rank #2.

Integer Holdings has a long-term estimated growth rate of 12.1%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.4%.

Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.

Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.

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