Bracanalysis,
Myriad
's (
MYGN
) flagship product, has been recording robust growth over the past
few quarters on the back of increasing penetration in both Oncology
and Women's Health. We are also impressed to note that the company
is on track to generate revenues from Europe as early as January
2012.
Development of the laboratory in Munich, Germany is complete
with work on equipping and staffing currently in progress. Myriad
has set a target of generating $50 million in annual revenues
within the next five years.
Myriad is focused on its research and development initiatives to
deliver new molecular diagnostic products. The company has decided
to pursue internal developments, in-licensing of technologies and
acquisitions to expand its business. Myriad 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 Rules-Based Medicine
("RBM") and in-licensed technologies from Chronix Biomedical and
Melanoma Diagnostics. At present, the company has 13 products under
various stages of development. The RMB deal would expand Myriad's
pipeline including tests for anti-psychotic drug safety, hepatitis
C drug response and detection of kidney damage in diabetes
patients.
In breast cancer, Myriad is undertaking several strategies to
expand the targeted patient population. Apart from 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 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 on December 28
th
. This will enable physicians to better assess the risk of a
particular patient, facilitating the selection of the appropriate
treatment option.
However, European expansion and pipeline development have pushed
up operating expenses. This will put margins under pressure.
Moreover, the current uncertainties in Europe might come in the way
of Myriad's expansion plans. Although we are optimistic about the
company over the long term, given the current uncertainties, we are
reverting to a Neutral recommendation.
GENOMIC HEALTH (
GHDX
): Free Stock Analysis Report
MYRIAD GENETICS (
MYGN
): Free Stock Analysis Report
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