Myriad Genetics Inc. (MYGN - Free Report) continues to progress on the reimbursement front for its well-regarded tests as the Noridian Administrative Services recently priced the new molecular pathology codes for 2013.
Noridian is the administrative contractor for Jurisdiction F which includes Utah. Given that Myriad’s entire gamut of tests menu reimbursed by Medicare are carried out in its Utah laboratory, the new pricing will be relevant for the company’s Medicare reimbursement in the ongoing year.
For the integrated Bracanalysis test, Noridian pricing of $3,382 compares with the average private insurance reimbursement of $3,680. The four elements of the legislated gap-fill process justify Bracanalysis pricing in the band of $3,100 to $3,300. Thus, the Noridian pricing reflects an upside of $82 for 2013. For Colaris, Noridian pricing of $4,343 compares with the private-payer reimbursement of $3,800.
Myriad currently envisages fiscal 2013 revenues towards the higher end of the guidance range of $575−$585 million (reflecting over 18% growth). The current Zacks Consensus Estimate of $585 million is in agreement with the revised projections.
The company expects that fiscal 2013 earnings per share is likely to be at the high end of the range of $1.55−$1.58 (reflecting 21% growth). The current Zacks Consensus Estimate of $1.58 tallies with Myriad’s expectations, thanks to a majority of upward revisions of earnings estimates.
Earnings momentum for Myriad has been on the rise ever since this molecular diagnostic company released its encouraging second-quarter fiscal 2013 results. With a history of posting positive earnings beat and the agreement among analysts, the stock carries a Zacks Rank #2 (Buy).
Besides Myriad, we are bullish on Cyberonics , Given Imaging and Medical Action . Each of these stocks carries a Zacks Rank #1 (Strong Buy).