Myriad Genetics Inc. (NASDAQ:MYGN), a leader in molecular diagnostics and precision medicine, announced today that it has discontinued part of its economic utility study concerning GeneSight, its genetic testing product. The study initially aimed to demonstrate the impact of GeneSight testing on hospitalizations and healthcare costs.
The first part of the multi-part study, conducted with a third-party vendor, had previously indicated a decrease in hospitalizations following GeneSight testing. Initial results, reported in April 2024, showed a 29% reduction in overall hospitalizations and a 39% reduction in psychiatric-related hospitalizations within the first 180 days after testing. These findings supported the company's hypothesis that GeneSight testing could lead to fewer hospital stays.
However, the study did not include a control group of patients who had not undergone GeneSight testing, which is essential for establishing a causal relationship between the testing and hospitalization rates. The second part of the study was designed to address this by comparing GeneSight-tested patients to a matched control group without GeneSight testing.
Upon reviewing the data, significant disparities were found in baseline hospital resource utilization and costs between the two groups. These disparities suggested that the non-GeneSight control group was not adequately matched and, therefore, could not serve as a viable control. As a result, Myriad Genetics determined that the data comparing the two groups were unreliable and consequently halted this portion of the study.
The company has not disclosed any plans for future studies to replace the discontinued analysis. Investors and stakeholders are reminded that this information is based on a press release statement.
In other recent news, Myriad Genetics has been the subject of several positive developments. The company's second-quarter results surpassed expectations, reporting revenues of $211.5 million, a 2.5% beat compared to consensus expectations. This led to raised guidance for 2024, now estimated at $835-845 million, a slight increase from previous forecasts. The company also reported a 19% increase in Hereditary Cancer Testing and a 9% rise in overall test volumes.
Analysts have responded favorably to these developments, with Wolfe Research, Scotiabank, Jefferies, and TD Cowen all increasing their price targets for Myriad Genetics. Wolfe Research's new target is $40, up from $30, Scotiabank's is $34, up from $29, Jefferies' is $22, up from $20, and TD Cowen's is $30, up from $28. These adjustments reflect the firms' confidence in Myriad Genetics' growth potential.
Additionally, Myriad Genetics has secured a new patent for its molecular residual disease assay technology, further enhancing its capabilities in the field of precision medicine. The company is also preparing for the commercial launch of its pipeline products, including FirstGene, Precise Liquid, and Precise MRD, which are expected to roll out between 2025 and early 2026.
These developments underscore the positive outlook for Myriad Genetics from financial institutions and the company's ongoing growth trajectory.
InvestingPro Insights
In light of Myriad Genetics' recent announcement on their GeneSight economic utility study, investors may find the following InvestingPro Insights relevant to gauge the company's financial health and market performance. As of the last twelve months leading up to Q2 2024, Myriad Genetics boasts a robust revenue growth of 14.78%, signaling a positive trajectory in sales. This growth is mirrored in the quarterly figures, with a 15.26% increase in revenue for Q2 2024. Despite not being profitable over the last year, the company has experienced a strong return of 52.39% over the past year, suggesting investor confidence.
Moreover, the company is currently trading near its 52-week high, with a price that is 94.43% of the peak, reflecting a potentially optimistic market sentiment towards Mygn's stock. Although the company has a negative P/E ratio of -15.67, indicating that it is not currently generating a profit relative to its share price, analysts have revised their earnings upwards for the upcoming period, suggesting a potential turnaround in profitability. Investors should note that Myriad Genetics does not pay a dividend, which may influence investment decisions for those seeking regular income.
For those seeking further analysis and more InvestingPro Tips, additional insights can be found by visiting the InvestingPro platform, which includes a variety of metrics and expert tips for a comprehensive investment strategy.
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