Myriad Genetics, Inc. (MYGN - Free Report) recently announced the issuance of a final local coverage determination (LCD) by the Medicare Administrative Contractor Palmetto GBA MolDx for the myPath Melanoma test. Notably, myPath Melanoma is a clinically confirmed test to be used as an adjunct to histopathology. The test holds importance when histopathology alone cannot conclusively differentiate between a benign nevus and a malignant melanoma.
Moreover, the myPath Melanoma test examines 23 genes and has demonstrated accuracy in multiple studies.
Myriad Genetics earlier stated that on LCD finalization, myPath Melanoma will begin contributing to the top line from the fourth quarter of fiscal 2019. Again, the company believes that Melanoma is one of the fastest growing cancers in the United States. In fact, more than one million skin biopsies are performed yearly and roughly 15% of patients have an equivocal skin lesion.
According to the American Cancer Society, around 96,480 Americans are expected to be identified with melanoma in 2019. Given the data, we believe the latest development is a timely one and will significantly contribute to the top line in the near term.
Impressive Reimbursement Progress So Far
During the fiscal second quarter, four state Medicaid programs, including Florida, Minnesota, Ohio and Pennsylvania, added average risk coverage to their medical policies. Altogether, this represented an additional 18% of Medicaid lives. Also, three additional Blue Cross Blue Shield affiliate plans updated their medical policy to cover average-risk testing from the fiscal first quarter.
Myriad Genetics reached a major milestone with the publication of the GeneSight GUIDED study in the Journal of Psychiatric Research. The company submitted the GeneSight dossier to commercial payers and state Medicaid programs, representing more than 200-million covered lives in the United States.
Further, Myriad Genetics’ EndoPredict test got included in the National Comprehensive Cancer Network guidelines.
Over the past three months, the company’s share price has outperformed the industry. The stock has gained 15.7% compared with the industry’s 13.2% growth.
Zacks Rank & Key Picks
Myriad Genetics sports a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , Veeva Systems Inc. (VEEV - Free Report) and Hologic, Inc. (HOLX - Free Report) .
Integer Holdings projects earnings growth rate of 31.2% for the first quarter. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Veeva Systems’ long-term earnings growth rate is projected at 14.8%. The stock currently carries a Zacks Rank #2.
Hologic’s long-term earnings growth rate is projected at 8.9%. The stock presently has a Zacks Rank #2.
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