Recently molecular diagnostic company
Myriad Genetics Inc.
) entered into a companion diagnostics research collaboration
with pharmaceutical major
). After the announcement on Mar 24, Myriad Genetics' shares went
up 2.3% to close the trading session at $34.41. However, this
bullish sentiment did not last, thanks to the biotech selloff at
the end of last week. This was followed by additional speculation
about a possible biotech bubble. Accordingly, the share price of
Myriad Genetics, similar to many other players in this niche,
dropped more than 4.8% yesterday.
This alliance marks Myriad Genetics' fifth such collaboration
with a major pharmaceutical company based on its homologous
recombination deficiency (HRD) test. Per the agreement, Tesaro
will use this HRD test to evaluate and identify tumor types that
may react to a PARP (poly-ADP ribose polymerase) inhibitor like
niraparib, currenty in phase III for the treatment of ovarian and
breast cancer. The financial terms of the deal were not
With an estimated market opportunity of $3 billion for the HRD
test, management at Myriad Genetics is confident that the
collaboration with Tesaro will seamlessly strengthen its foothold
in the companion diagnostics market. While only a subset of
patients respond to PARP inhibitors, the HRD test has established
itself successfully as the most comprehensive test to identify
these patients who are likely to respond to treatment.
According to Myriad Genetics, high HRD scores are predominant
in all breast cancer subtypes and in most of the major cancer
types. An earlier published data had revealed that the HRD test
predicted drug response to platinum therapy in triple-negative
breast cancer type.
Myriad Genetics is emerging as a strong player in the
companion diagnostic market as evident from its strategic deals
with several pharmaceutical majors.The company has PARP
collaborations with majors like
) among others. We believe that these developments should augur
well for the long-term development of the company. The stock
currently carries a Zacks Rank #2 (Buy).
ABBVIE INC (ABBV): Free Stock Analysis Report
ASTRAZENECA PLC (AZN): Free Stock Analysis
MYRIAD GENETICS (MYGN): Free Stock Analysis
TESARO INC (TSRO): Free Stock Analysis Report
To read this article on Zacks.com click here.