Molecular diagnostic major Myriad Genetics, Inc. (MYGN - Free Report) recently announced that the US Oncology Network has selected its subsidiary Myriad Genetic Laboratories as its preferred provider for hereditary cancer testing. The U.S. Oncology Network is one of the country’s largest networks of integrated, community-based and independent physician practices dedicated toward advancing high-quality, evidence-based cancer care. With more than 1,000 affiliated physicians across 19 states, physicians in the Network treat over 800,000 patients every year.
Myriad Genetics will collaborate with the Network to perform hereditary cancer research through the Genetic Risk Evaluation and Testing (GREAT) program within the latter’s affiliated practices. Under this program, the organizations will work together to develop a database that links patient outcomes with genetic test results. The objective of this program is to better understand the genotype-phenotype correlation, gene prevalence and studies related to improving patient counseling and accessing tests.
Management at the US Oncology Network is eager to work with Myriad Genetics as the latter has an outstanding reputation for diagnostic accuracy and customer service. This is because the company’s expertise and scientific leadership have authored or co-authored over 50 peer-reviewed publications in the last three years. This makes the company an ideal research partner for the Network.
We also note that this partnership will prove beneficial for both the parties as physicians at the Network will gain insight into many unexplored things in the field of oncology. Meanwhile, Myriad Genetics will be able to undertake investments for offering better quality clinical care and hereditary cancer testing services.
As per Medgadget report, the global genetic testing market is expected to reach a worth of $6.0 billion by 2022, growing at a CAGR of 8.2% from 2015 to 2022. We feel that the recognition gained by Myriad Genetics as a preferred provider laboratory for hereditary cancer testing will boost its capabilities to grow in the market. The company has developed notable hereditary cancer assays including myRiskHereditary Cancer test, BRACAnalysis, COLARIS, MELARIS and PANEXIA.
Zacks Rank & Key Picks
Myriad Genetics currently has a Zacks Rank #5 (Strong Sell). Better ranked stocks in the medical product sector are GW Pharmaceuticals plc (GWPH - Free Report) , Quidel Corp. (QDEL - Free Report) and NuVasive, Inc. (NUVA - Free Report) . GW Pharmaceuticals and Quidel sport a Zacks Rank #1 (Strong Buy) while NuVasive carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
GW Pharmaceuticals recorded a 92.18% gain year to date, far better than the S&P 500’s 5.67% over the same time frame. The stock’s four-quarter average earning surprise is 41.67%.
Quidel gained 14.44% in the past one year, higher than the S&P 500’s 8.21%. Over the next five years, the stock is estimated to record earnings growth rate of 20%, higher than the industry average of 14.8%. It has a trailing four-quarter average earning surprise of 59.39%.
NuVasive saw a 27.47% surge over the past one year compared to the S&P 500’s 8.21%. Over the next five years, the stock is expected to see 16.7% earnings growth compared to the industry average of 14.8%.
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