Back to top

Image: Bigstock

Myriad Genetics: Study Data Drives Growth, Competition Rife

Read MoreHide Full Article

On Jun 30, we issued an updated research report on Salt Lake City, UT-based molecular diagnostics provider, Myriad Genetics, Inc. (MYGN - Free Report) . The company currently carries a Zacks Rank #3 (Hold).

Myriad has been hitting the headlines of late buoyed by the handful of study results released in favor of the company’s diagnostic tests as well as its notable acquisition of Sividon Diagnostics. The buyout of this German breast cancer prognostic startup will allow Myriad to sell the former’s multi-gene diagnostic test, EndoPredict in the U.S. markets, which can identify the aggressiveness of breast cancer on a molecular level.

In terms of private reimbursement coverage for Vectra DA, Myriad has signed two private insurance contracts for the test in the recent past for the first time, representing coverage of 2 million lives. A latest study data now demonstrates the Vectra DA test’s efficacy in successfully predicting treatment response in rheumatoid arthritis (RA) patients.

With increasing favorable data underlining the efficacy of Vectra DA in providing optimal therapy for RA patients, management expects the company to sign more of such contracts with a broad range of payers in the days ahead.

The most recent study data from the Nova trial shows Myriad’s myChoice HRD test’s effectiveness in detecting an increased number of ovarian cancer patients, who may benefit from its long-time partner Tesaro’s niraparib drug.

Further, to obtain reimbursement for the myPath Melanoma test, the company has submitted the manuscripts on the second clinical validation study for publication at a major dermatology journal. Management expects to publish the clinical utility study in the fourth quarter of 2016.

On the flip side, with the entry of new players in the molecular diagnostics market, imminent price competition remains a major cause of concern for Myriad. Per management, Myriad is currently facing competition in its key BRACAnalysis market. Going ahead, the company expects competition to intensify in its current fields with recently observed advancements in technology.

Foreign exchange headwinds will also continue to hamper the company’s growth trajectory, due to consistent strengthening of the U.S. dollar. Additionally, macroeconomic uncertainty and higher expenses owing to extensive pipeline of some tests remain a matter of concern.

Stocks to Consider

Some better-ranked medical stocks are Boston Scientific Corporation (BSX - Free Report) , ICU Medical, Inc. (ICUI - Free Report) and LeMaitre Vascular, Inc. (LMAT - Free Report) . All these stocks carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Published in