Is Myriad Genetics Stock a Smart Hold for Your Portfolio Right Now? – December 17, 2024

Myriad Genetics, Inc. (MYGN Quick QuoteMYGN – Free Report) is driving innovation across Oncology, Women’s Health and Pharmacogenomics, and heavily invests in labs and digital capabilities. Thecompany’s Oncology growth strategy centers on the expansion of companion diagnostics, market expansion through new clinical guidelines and the introduction of new offerings. In addition, key partnerships, such as with GSK and QIAGEN, underscore its commitment to improving access to HRD diagnostic testing. Yet, a volatile macroeconomic situation and competitive disadvantages may hurt Myriad Genetics’ operations.

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In the past year, this Zacks Rank #3 (Hold) company’s shares have dropped 31%, compared to the industry’s 8.3% fall and the S&P 500’s gain of 28.5%.

The renowned genetic testing and precision medicine company has a market capitalization of $1.31 billion. MYGN’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 247.73%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Tailwinds for MYGN Stock

Progress With Strategic Priorities: Myriad Genetics focuses on innovation and growth in three key areas where it has specialized products, capabilities and expertise: Oncology, Women’s Health and Pharmacogenomics. Within the hereditary cancer market, MyRisk sees robust growth from rising adoption and strong payer coverage. The upward trend will continue thanks to expanded guidelines and accelerated EMR integrations, which improve the overall customer experience and revenue cycle management.

In the third quarter of 2024, GeneSight revenue per test improved both on a year-over-year and quarter-over-quarter basis, reflecting strong provider demand, commercial pull through and improving payer coverage from more states enacting biomarker laws, along with positive contributions from prior periods.

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Over the last three years, Myriad Genetics has invested over $75 million in state-of-the-art labs, standard-based technologies and digital capabilities. The company has significantly progressed this year with permitting, lab moves, lab validation and operational scale-up, with an increased volume of sample processing for both Prolaris and Precise MRD in Salt Lake City.

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Huge Potential in Oncology Testing: The company’s growth strategy for its Oncology business focuses on the expansion of companion diagnostics, market expansion through new clinical guidelines and providing new offerings. Recently, it continued to enhance its ability to deliver tumor-informed high-definition MRD assays and secured a third foundational method patent from the USPTO (U.S. Patent and Trademark Office) in October 2024. The agreement with Personalis to cross-license patent estates covering tumor-informed approaches to MRD strengthens its intellectual property position.

The company plans to launch the first MRD commercial for breast cancer in the first half of 2026. Additionally, Myriad Genetics has a strong engagement with biopharma companies running their MRD samples in the new Salt Lake City lab, combining high-performance MRD assays with efficient lab workflows and cutting-edge infrastructure. Furthermore, the Precise Liquid test, expected to be commercially launched by Myriad Genetics in early 2026, is set to provide convenient, comprehensive genomic profiling results from a single blood draw.

myChoiceCDx Progresses Well: Myriad Genetics’ FDA-approved tumor test determines HRD status in patients with ovarian cancer. Earlier, the company had announced plans to expand the test to other indications like breast, prostate and pancreatic cancers for expanded pharma clinical trials and commercial testing. Myriad Genetics’ collaboration with QIAGEN, announced in May 2024, to develop a next-generation sequencing-based HRD assay based on the MyChoice CDx biomarkers.

In June, a new sponsored testing program with GSK leveraged the MyChoice HRD Plus and MyChoice CDx Plus tests (collectively referred to as Myriad’s MyChoice Tests) to improve access to HRD testing in nine countries, including Argentina, Singapore and the United Arab Emirates. Notably, the company’s partnership with Illumina combines the MyChoice CDx technology and Illumina’s expertise in comprehensive genomic profiling to broaden clinical research opportunities and drive CDx development for gene-based therapies.

Headwinds for MYGN Stock

Macroeconomic Concerns: Operating internationally brings various business, regulatory, political, operational, financial and economic risks for Myriad Genetics. This includes conflicting and changing laws and regulations, ineffective marketing campaigns, managing multiple payor reimbursement regimes, as well as handling logistics and regulations in shipping patient samples. Additionally, political and economic instability resulting in the curtailment of trade and other business restrictions and global inflationary pressure leading to higher costs of hiring and retaining skilled employees, producing test results and procuring lab supplies are creating significant pressure on the company’s profitability.

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Increasing Competition: Myriad Genetics is currently facing competition in its key BRACAnalysis market. The company expects competition to intensify in its current fields with recently observed technological advancements. As competitors roll out their molecular diagnostic tests, it might push down prices for the company’s high-priced offerings, deterring any margin improvement.

MYGN Stock Estimate Trend

In the past 30 days, the Zacks Consensus Estimate for the company’s 2024 earnings has remained constant at 12 cents per share.

The Zacks Consensus Estimate for 2024 revenues is pegged at $846.6 million, suggesting a 12.4% rise from the year-ago reported number.

Top MedTech Stocks

Some better-ranked stocks in the broader medical space are Haemonetics (HAE Quick QuoteHAE – Free Report) , Boston Scientific (BSX Quick QuoteBSX – Free Report) and Phibro Animal Health (PAHC Quick QuotePAHC – Free Report) .

Haemonetics has an earnings yield of 5.41% compared with the industry’s 1.75%. Haemonetics’ earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 2.82%. Its shares have risen 1.5% compared with the industry’s 20.9% growth in the past year.

HAE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific, carrying a Zacks Rank #2 at present, has a long-term estimated earnings growth rate of 13.8%. Shares of the company have surged 65.7% compared with the industry’s 21% growth. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.29%.

Phibro Animal Health, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 35.3% for fiscal 2025 compared with the industry’s 11.1%. Shares of the company have risen 81.2% compared with the industry’s 14.5% growth over the past year. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 25.47%.