Myriad Genetics
(
MYGN
), in order to further expand its product portfolio, obtained
rights to the RAD51C gene. Studies have shown that mutations in the
RAD51C gene are associated with an increased risk of hereditary
breast and ovarian cancer.
RAD51C was originally identified as a vulnerable gene for
hereditary breast and ovarian cancer by the German Consortium for
Hereditary Breast and Ovarian cancers in collaboration with other
scientists. The current agreement grants Myriad an exclusive,
worldwide license, with co-exclusivity in Germany, to provide
commercial testing for RAD51C.
Over the past few quarters, the company has been undertaking
several steps to reduce dependence on Bracanalysis, its flagship
product. With a focus on delivering new molecular diagnostic
products, Myriad has decided to pursue internal developments,
in-licensing of technologies and acquisitions to expand its
business. In September 2011, the company entered into a deal with
Crescendo Biosciences which in due course can complement its
portfolio by adding autoimmune and inflammatory disease products.
Over the recent past, the company has acquired RBM and in-licensed
technologies from Chronix Biomedical and Melanoma Diagnostics. At
present, the company has 13 products under development at various
stages.
In breast cancer, Myriad is undertaking several strategies to
expand the targeted patient population. Besides increasing
penetration with triple negative breast cancer patients, the
company is focusing on carcinoma in situ ("CIS"), a non-invasive
form of breast cancer that occurs in roughly 62,000 patients each
year.
Viewing the huge untapped potential in the CIS market,
Genomic Health
(
GHDX
), another player in the diagnostics space, launched Oncotype DX
DCIS Score last month. This will enable physicians to better assess
the risk of a particular patient, facilitating the selection of the
appropriate treatment option.
Myriad has made a commedable progress with respect to its
expansion in Europe. The company plans to generate revenues from
Europe in January 2012 with the target of achieving $50 million in
revenues each year within the next five years. However, the current
uncertainties in Europe might come in the way of Myriad's expansion
plans. European expansion and pipeline development have also pushed
up operating expenses, which are keeping margins under
pressure.
Myriad currently retains a Zacks #3 Rank (short-term Hold
rating). We also maintain our long-term Neutral recommendation on
the stock.
GENOMIC HEALTH (
GHDX
): Free Stock Analysis Report
MYRIAD GENETICS (
MYGN
): Free Stock Analysis Report
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