Myriad Genetics
' (
MYGN
) study found Bracanalysis to be cost effective. The data was
recently presented at a Breast Cancer conference.
The study demonstrated the cost effectiveness of Bracanalysis in
asymptomatic women in US who have a higher probability of having a
BRCA1 or BRCA2 mutation based on family history. The test is cost
effective if a woman has a 3.1% probability of a mutation. This
would bring 7% women (11 million) in the US under the ambit thereby
doubling the current market size of approximately 6 million, who
fall under the current guidelines for unaffected testing.
Bracanalysis is Myriad's flagship product, contributing 86.4% of
total revenue. This test provides a comprehensive analysis of BRCA1
and BRCA2 genes for assessing a woman's risk of hereditary breast
and ovarian cancers. A woman testing positive for a deleterious
mutation with the Bracanalysis test has an 82% risk of developing
breast cancer and a 44% risk of developing ovarian cancer during
her lifetime.
Myriad has been undertaking several strategies in the past few
quarters to expand the targeted patient population. Apart from
increasing penetration with triple negative breast cancer patients
(TNBC), the company is focusing on carcinoma in situ (
CIS
), a non-invasive form of breast cancer that occurs in almost
62,000 patients each year.
Viewing the huge untapped potential in the CIS market,
Genomic Health
(
GHDX
), another player in the diagnostics space, plans to launch Onco
type
DX DCIS Score to physicians later this month. This will enable
physicians to better assess the risk of a particular patient,
facilitating the selection of the appropriate treatment option.
Myriad's most recent quarter recorded 20% growth in total
revenues to amass $110.5 million with a 13% rise in Molecular
diagnostics revenue to $104 million. Revenues derived from Oncology
and Woman's Health increased 12% (to $74.2 million) and 15% (to
$29.8 million), respectively. Robust growth in the Oncology segment
emanated from the development of TNBC, CIS and ovarian cancer
indications. Revenues from these indications grew 21% year over
year and increased the addressable Oncology market by $200 million
to $650 million annually.
We consider Myriad's Bracanalysis as a valuable asset for
top-line growth as it has the potential to tap a widely unexplored
market. Besides, we believe the various strategies adopted by the
company to improve its top line should reap benefits in the long
run. Moreover, a strong cash balance enables the company to buy
back shares, expand into new markets and introduce more
products.
GENOMIC HEALTH (
GHDX
): Free Stock Analysis Report
MYRIAD GENETICS (
MYGN
): Free Stock Analysis Report
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