SALT LAKE CITY - Myriad Genetics , Inc. (NASDAQ: NASDAQ:MYGN), a company specializing in genetic testing and precision medicine, announced its disagreement with UnitedHealthcare's recent policy update. The insurer plans to restrict coverage for multi-gene panel pharmacogenetic tests, including Myriad's GeneSight, under its commercial and individual exchange benefit plans starting January 1, 2025.
The policy change was communicated to Myriad on Friday, with the company expressing surprise and disappointment. Myriad's President and CEO, Paul J. Diaz, emphasized the clinical validity and utility of the GeneSight test, supported by peer-reviewed research studies. He highlighted the test's importance, especially in primary care settings, where a significant portion of antidepressants are prescribed. Diaz pointed out that nearly 3 million GeneSight tests have been administered, underlining the demand for this pharmacogenomic test.
GeneSight is designed to help healthcare providers select appropriate medications for patients with depression, anxiety, ADHD, and other psychiatric conditions by analyzing how a patient's genes may affect their response to certain drugs. Myriad is actively engaging with UnitedHealthcare to discuss the evidence supporting GeneSight and is seeking to maintain access for enrollees.
Despite the policy revision, Myriad does not anticipate an impact on GeneSight's coverage under UnitedHealthcare's Medicare Advantage and managed Medicaid plans. The company also remains optimistic about recent favorable coverage decisions from other health plans and state biomarker legislation that recognize GeneSight's clinical validity.
Myriad plans to provide further details on its engagement with UnitedHealthcare and the potential financial implications of the policy change during its third-quarter 2024 earnings conference call scheduled after the market closes on Thursday.
The information is based on a press release statement from Myriad Genetics, Inc.
In other recent news, Myriad Genetics reported third-quarter revenue figures between $210-212 million, surpassing analysts' expectations. The company also confirmed its 2024 revenue guidance of $835-845 million. In terms of analyst ratings, Scotiabank maintained its Sector Outperform rating for Myriad Genetics, while JPMorgan (NYSE:JPM) held an Underweight rating, and Leerink Partners increased their price target to $40, maintaining an Outperform rating.
Myriad Genetics recently announced strategic partnerships with jscreen, Flatiron Health, The University of Texas MD Anderson Cancer Center, and The University of Rochester Medical Center. The partnership with jscreen aims to leverage Myriad's genetic testing products and jscreen's education and genetic care programs to reach a broad audience across the United States. The collaboration with Flatiron Health involves integrating Myriad's MyRisk Hereditary Cancer Test into Flatiron's OncoEMR platform, marking the first time a hereditary cancer test has been incorporated into a cloud-based Electronic Medical Record system.
These are recent developments involving Myriad Genetics. Despite discontinuing part of its GeneSight study, Wells Fargo (NYSE:WFC) listed Myriad Genetics among its high-conviction ideas for sustained growth into 2025. The company's strategic initiatives and recent partnerships demonstrate its commitment to growth and innovation in the field of genetic testing.
InvestingPro Insights
As Myriad Genetics (NASDAQ: MYGN) grapples with UnitedHealthcare's policy change, recent market data and analyst insights provide additional context to the company's situation. According to InvestingPro data, Myriad's stock has taken a significant hit, with a 32.04% decline in the past month and an 18.08% drop in just the last week. This sharp downturn likely reflects investor concerns about the potential impact of UnitedHealthcare's decision on Myriad's GeneSight test revenue.
Despite these challenges, Myriad Genetics shows some positive financial indicators. The company's revenue growth stands at 14.78% over the last twelve months, with a robust gross profit margin of 69.07%. This suggests that Myriad's core business remains strong, potentially providing a buffer against the anticipated policy change.
InvestingPro Tips highlight that while Myriad is not currently profitable, analysts predict the company will turn a profit this year. This projection could be crucial as Myriad navigates the potential revenue impact from UnitedHealthcare's policy update. Additionally, the company operates with a moderate level of debt, which may provide some financial flexibility as it addresses these challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Myriad Genetics, providing deeper insights into the company's financial health and market position.
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