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Myriad Genetics' Unit Releases Favorable Data on Vectra DA

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Myriad Genetics, Inc.’s (MYGN - Free Report) subsidiary, Crescendo Bioscience continues to make development with its Vectra DA assay. After last week’s announcement of its contract with United Rheumatology on this assay, it has once again come up with favorable data on the use of Vectra DA to predict treatment response in patients with rheumatoid arthritis (RA).

RA is a chronic disease in which the body’s immune system inadvertently attacks the joints. This causes inflammation that leads to pain in and around the joints. Over a prolonged period of time, the swelling around the joints can lead to bone erosion and joint deformity. The disease may also affect other parts of the body.

It is to be noted that Vectra DA is the first and sole multi-biomarker blood test to detect radiographic progression. The test integrates the concentrations of 12 serum proteins associated with RA disease activity to help physicians make more informed treatment decisions.

More than 20 studies have demonstrated the usefulness of Vectra DA with more than 3,000 patients. The clinical evidences of Vectra DA have been widely recognized as a number of practicing rheumatologists have ordered the test for their patients in the U.S.

Objective of this latest study, which was published online in the Arthritis & Rheumatology journal, was to evaluate whether the Vectra DA score could be used to predict the optimal choice of second-line treatment for patients with RA who were methotrexate (MTX) incomplete responders (MTX-IR).  

According to Crescendo Bioscience, the study successfully proves superiority of Vectra DA over clinical and single inflammatory biomarkers in predicting response to non-biological therapy intensification versus anti-TNF (infliximab) therapy.  Accordingly, this will help to individualize treatment plans and improve health outcomes for RA patients.

Share Price Trend

In majority of the last three months, Myriad Genetics’ share price traded below the Zacks categorized Medical-Biomed/Genetics industry. In fact, the mixed first-quarter fiscal 2017 results were primarily responsible for sending the stock down 18.5% compared with the industry’s 7.5% loss.

Latest Development on Vectra DA

Recently, United Rheumatology, a leading professional organization for rheumatologists in the U.S., has added Vectra DA assay to its clinical practice guidelines for adults with RA. The guidelines are designed to assist United Rheumatology healthcare professionals in the diagnosis, treatment and monitoring of patients with RA to preserve function, improve quality of life and monitor results safely and in a cost-effective way.

During the recently concluded first-quarter fiscal 2017, Myriad Genetics has made remarkable development with its Vectra DA product. In terms of reimbursement, management for the assay signed its first five commercial payers, representing 3 million additional covered lives. The RA test kit has a global addressable market of $3 billion and a current reimburse market of $600 million in the U.S.

Per a Persistence Market Research analysis, the global rheumatoid arthritis diagnosis tests market is estimated to reach $738.7 million by 2022, at a CAGR of 6.2%. The latest study on the Vectra DA test should further help Myriad Genetics gain traction in this market.

Zacks Rank & Key Picks

Myriad Genetics carries a Zacks Rank #3 (Hold). Better-ranked medical stocks include NxStage Medical Inc. , Eagle Pharmaceuticals, Inc. (EGRX - Free Report) and Haemonetics Corporation (HAE - Free Report) . NxStage Medical and Eagle Pharmaceuticals sport a Zacks Rank #1 (Strong Buy) while Haemonetics Corporation carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NxStage Medical gained 14.6% over the last one year compared with the S&P 500’s 11.4% growth. The company has a four-quarter average positive earnings surprise of 46.3%.

Eagle Pharmaceuticals rallied 17.2% over the last one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 3.7%.

Haemonetics recorded a 111.3% gain in the past one year, way better than the S&P 500. The company has a trailing four-quarter positive average earnings surprise of 28.7%.

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