Amid the commotion surrounding
Myriad Genetics Inc
) much hyped Supreme Court ruling, the company has shifted focus
on its companion diagnostics business. Recently, Myriad announced
that it has inked an agreement with
) to carry out BRCA1 and BRCA2 mutation testing on patients to be
enrolled under two different Phase III clinical studies with
DAVITA INC (DVA): Free Stock Analysis Report
MYRIAD GENETICS (MYGN): Free Stock Analysis
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TESARO INC (TSRO): Free Stock Analysis Report
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As per the agreement, TESARO will commence two Phase III clinical
studies with niraparib, novel, orally active poly (ADP-ribose)
polymerase or PARP inhibitor. TESARO plans to initiate one of the
Phase III study in platinum sensitive, high grade serous ovarian
cancer patients. Enrollment for this study is expected to begin
in mid 2013.
Alongside, a Phase III clinical study will enroll metastatic
breast cancer patients with germline BRCA mutations. The study is
scheduled to commence in the second half of 2013.
As per the agreement, TESARO will utilize Myriad's flagship
Bracanalysis test as a companion diagnostic to distinguish
patients in the former's pivotal clinical trials for niraparib.
Management at Myriad asserts that the use of its Bracanalysis
test in the studies will uphold its 'gold standard' in the
companion diagnostic market.
Management at Myriad is sanguine that the collaboration with
TESARO will seamlessly strengthen the company's foothold in the
companion diagnostics market. The company is consistently
asserting itself as a strong player in the companion diagnostic
market as evident from its strategic deals with several
In the third quarter of fiscal 2013, Myriad's alliance with
) yielded positive results as revenue from companion diagnostic
tests were up 25% year over year. In the last quarter, the
companion diagnostics franchise contributed 5% to the total
revenue. We are positive that such strategic agreements will
further bolster revenues going forward.
Last week, Myriad's wholly owned subsidiary Myriad RBM, entered
into a strategic liaison with DaVita Labs, the dialysis division
DaVita HealthCare Partners Inc.
). In our opinion, coherent focus on the RBM franchise could
position Myriad as a leader in this arena based on its
proprietary protein technology and range of immunoassays.
We believe that these developments should augur well for the
long-term development of the company. The earnings magnitude has
also been moving upward with estimates for the ongoing and next
fiscal moving higher for Myriad. Moreover, with three consecutive
positive earnings surprises, this Zacks Rank #2 (Buy) stock is