Myriad Genetics Unveils Prolaris Data - Analyst Blog
February 19 2014 - 2:50PM
Zacks
Shares of Myriad Genetics
Inc. (MYGN) surged 11.4% at yesterday’s market close
following the company’s recent release of positive data on its
Prolaris test – a 46-gene molecular diagnostic test – in the
Journal of Urology. The Prolaris test correctly predicted those
prostrate cancer patients who had the risk of biochemical
recurrence (“BCR”) or metastatic disease following a radical
prostrate surgery. The predictions were made based on biopsies
conducted earlier on these patients. Notably, the Prolaris test has
been evaluated in more than 5,000 patients across 11 clinical
studies.
According to the company, this
test, that helps to detect patients who are likely to fail surgery,
is a great milestone in the field of prostate cancer treatment.
While patients with a low score may need active surveillance, the
ones with a high score signify aggressive cancer and may require
more intensive treatments.
Myriad is currently targeting
expansion of its pipeline with products for diverse indications
including oncology, women’s health, urology, dermatology,
autoimmune and inflammatory disease and neuroscience. To achieve
this objective, the company has decided to pursue internal
developments, in-licensing of technologies and acquisitions to
expand its business. We are sanguine about these developments as
some of the pipeline candidates look promising enough to cater to a
billion-dollar market size.
Earlier this month, the company
announced the acquisition of Crescendo Bioscience – an autoimmune
diagnostics company. The product line of Crescendo is expected to
complement Myriad’s portfolio by adding autoimmune and inflammatory
disease products. Crescendo’s novel offering, Vectra DA that Myriad
will gain from the takeover will allow the company to tap a
promising market opportunity of $2.5 billion worldwide.
The commercialization of the unique
myRisk test is another material upside as management expectations
from the pan-cancer test are sky high. Moving forward, we consider
Myriad’s HRD (Homologous Recombination Deficiency) test as a
valuable asset for top-line growth given its potential to tap a
widely unexplored market. The company’s increasing focus on the
companion diagnostic market should work reasonably well to fuel
growth. We look forward to the expansion of indications and derive
comfort from the company’s plan to foray into the dermatology,
autoimmune and neuroscience market in the future on the back of
portfolio development.
Currently, the stock carries a
Zacks Rank #3 (Hold). Better-placed stocks that are worth a look
include Affymetrix Inc. (AFFX),
Biogen Idec Inc. (BIIB) and Actelion
Ltd. (ALIOF). While Affymetrix and Biogen Idec sport
a Zacks Rank #1 (Strong Buy), Actelion bears a Zacks Rank #2
(Buy).
AFFYMETRIX INC (AFFX): Free Stock Analysis Report
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BIOGEN IDEC INC (BIIB): Free Stock Analysis Report
MYRIAD GENETICS (MYGN): Free Stock Analysis Report
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