Myriad Genetics, Inc. (MYGN - Free Report) presented encouraging data from two studies on its second-generation prognostic gene expression test for breast cancer — EndoPredict. The results were presented at the 2017 San Antonio Breast Cancer Symposium (SABCS) in Texas.
Per the company, the data from these studies demonstrated the test’s ability to predict residual cancer burden to neoadjuvant chemotherapy and to neuroendocrine therapy in HR+/HER2- breast cancer patients from ABCSG34. The results also confirmed EndoPredict’s ability to effectively predict the distant recurrence in patients with invasive lobular carcinoma (ILC) compared to those with invasive ductal carcinoma (IDC). We believe these findings will drive the uptake of EndoPredict.
Developments in EndoPredict Tests
Myriad Genetics has been gaining from strong Molecular Diagnostics performance led by solid contributions from the GeneSight and EndoPredict tests. We are also upbeat about management’s expectations of double-digit volume growth in fiscal 2018 for GeneSight, Vectra DA, Prolaris and EndoPredict tests, all of which make up a major part of the Molecular Diagnostics portfolio.
In March, the company has been receiving encouraging response since the launch of the EndoPredict test in the United States for early-stage breast cancer. In August, Myriad Genetics received positive coverage decision for the test from Palmetto GBA, a Medicare Administrative Contractor (MAC) and Anthem, Inc., one of the largest private insurers in the United States. Notably, full implementation of this decision will lend Myriad Genetics coverage for approximately 90% of breast cancer patients.
The company recently announced positive results from a clinical study evaluating EndoPredict which highlights its superiority over the first-generation Oncotype DX Breast Recurrence Score in predicting breast cancer recurrence in patients determined to be at intermediate clinical risk by the Nottingham Prognostic Index.
Per a report by DPI Research on Medium, the breast cancer screening market in the United States is expected to reach a value of roughly $5.8 billion by 2022. Moreover, per an article by BreastCancer.Org, approximately 252,710 new cases of invasive breast cancer in women are likely to be diagnosed in the United States in 2017. They also project 63,410 new cases of non-invasive (in situ) breast cancer this year as well.
We believe an ageing population, rising awareness and expenditure in healthcare will continue to drive growth in the breast cancer screening market. However, this market is dominated by a number of well-established players, Quest Diagnostics (DGX - Free Report) being the most prominent one. In this space, Quest Diagnostics’ Quest Vantage services help in the discovery of genetic variants related to the hereditary risk of 15 types of cancer, including breast, colorectal, pancreatic and renal.
Share Price Performance
Myriad Genetics has been gaining investor confidence on consistently positive results. Over the past year, the company’s share price has outperformed the broader industry. The stock has gained 91.2% in comparison to the broader industry’s 1.7% rise.
Zacks Rank & Key Picks
Myriad Genetics sports a Zacks Rank #1 (Strong Buy).
Other top-ranked medical stocks are PetMed Express, Inc. (PETS - Free Report) and Align Technology, Inc. (ALGN - Free Report) . Notably, PetMed and Align Technology sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1Rank stocks here.
PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 89.2% over a year.
Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has added 142% in a year.
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