In a challenging market environment, Myriad Genetics , Inc. (NASDAQ:MYGN) stock has touched a 52-week low, dipping to $16.6. This latest price movement reflects a modest 1.15% increase over the past year, signaling a period of relative stability in the face of broader market volatility. Investors are closely monitoring the company's performance, as the stock's fluctuation near the lower end of its 52-week spectrum could indicate both potential risks and opportunities for those looking to capitalize on the healthcare sector's dynamics.
In other recent news, Myriad Genetics has reported an 11% year-over-year revenue growth and positive adjusted earnings per share (EPS) in its third-quarter 2024 earnings call. The company has also adjusted its revenue target for 2024 to around $840 million and increased its adjusted EPS target to $0.12-$0.14. Despite a potential policy change by UnitedHealthcare that could impact the company's GeneSight test revenue by $40 million, Myriad Genetics remains committed to its growth strategy.
The company is investing in lab technologies and integrating digital capabilities, including EMR system integrations, to enhance operational efficiency. In addition, Myriad Genetics is preparing to launch the Precise MRD test for breast cancer in the first half of 2026. The company also anticipates double-digit growth in its remaining business despite the potential UnitedHealthcare policy change.
However, the anticipated policy change by UnitedHealthcare could result in a loss of approximately $40 million in revenue and $30 million in gross profits. The company is working to mitigate about $10 million of this impact. Despite these challenges, Myriad Genetics sees opportunities for market share gains following recent acquisitions in the hereditary testing space and is focusing on expanding medical policies and reducing no-pay rates. The company's ongoing investments in clinical evidence across products are expected to contribute to future growth.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Myriad Genetics' current position. The company's market capitalization stands at $1.52 billion, reflecting its significant presence in the genetic testing industry. Despite a challenging year, MYGN has shown resilience with a revenue growth of 12.15% over the last twelve months, reaching $823.6 million. This growth is particularly noteworthy given the company's robust gross profit margin of 69.15%, indicating strong pricing power in its niche market.
However, investors should note that Myriad Genetics is currently operating at a loss, with an adjusted operating income of -$95.4 million over the last twelve months. This aligns with an InvestingPro Tip suggesting that the company has not been profitable during this period. Nevertheless, another InvestingPro Tip indicates that analysts predict profitability for the company this year, which could signal a potential turnaround.
The stock's recent performance has been volatile, with a significant 38.07% decline over the past three months. This volatility is reflected in another InvestingPro Tip, which notes that the stock's price movements have been quite erratic. For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips that could provide valuable insights into Myriad Genetics' future prospects.
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