Myriad Genetics Inc.
) surged 11.4% at yesterday's market close following the
company's recent release of positive data on its Prolaris test -
a 46-gene molecular diagnostic test - in the Journal of Urology.
The Prolaris test correctly predicted those prostrate cancer
patients who had the risk of biochemical recurrence ("BCR") or
metastatic disease following a radical prostrate surgery. The
predictions were made based on biopsies conducted earlier on
these patients. Notably, the Prolaris test has been evaluated in
more than 5,000 patients across 11 clinical studies.
According to the company, this test, that helps to detect
patients who are likely to fail surgery, is a great milestone in
the field of prostate cancer treatment. While patients with a low
score may need active surveillance, the ones with a high score
signify aggressive cancer and may require more intensive
Myriad is currently targeting expansion of its pipeline with
products for diverse indications including oncology, women's
health, urology, dermatology, autoimmune and inflammatory disease
and neuroscience. To achieve this objective, the company has
decided to pursue internal developments, in-licensing of
technologies and acquisitions to expand its business. We are
sanguine about these developments as some of the pipeline
candidates look promising enough to cater to a billion-dollar
Earlier this month, the company announced the acquisition of
Crescendo Bioscience - an autoimmune diagnostics company. The
product line of Crescendo is expected to complement Myriad's
portfolio by adding autoimmune and inflammatory disease products.
Crescendo's novel offering, Vectra DA that Myriad will gain from
the takeover will allow the company to tap a promising market
opportunity of $2.5 billion worldwide.
The commercialization of the unique myRisk test is another
material upside as management expectations from the pan-cancer
test are sky high. Moving forward, we consider Myriad's HRD
(Homologous Recombination Deficiency) test as a valuable asset
for top-line growth given its potential to tap a widely
unexplored market. The company's increasing focus on the
companion diagnostic market should work reasonably well to fuel
growth. We look forward to the expansion of indications and
derive comfort from the company's plan to foray into the
dermatology, autoimmune and neuroscience market in the future on
the back of portfolio development.
Currently, the stock carries a Zacks Rank #3 (Hold).
Better-placed stocks that are worth a look include
Biogen Idec Inc.
). While Affymetrix and Biogen Idec sport a Zacks Rank #1 (Strong
Buy), Actelion bears a Zacks Rank #2 (Buy).
AFFYMETRIX INC (AFFX): Free Stock Analysis
ACTELION LTD (ALIOF): Get Free Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis
MYRIAD GENETICS (MYGN): Free Stock Analysis
To read this article on Zacks.com click here.