Myriad Genetics Inc.
) touched a new 52-week high of $34.70 on Tuesday, May 14, 2013
following news out of Hollywood. Academy Award winning Hollywood
star Angelina Jolie had tested positive for a 'faulty' version of
the BRCA1 gene, which is exclusively licensed with the company.
Subsequently, the stock climbed 2.99% higher to close at $34.10
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Drivers That Triggered Momentum
The film star's disclosure that she underwent a preventative
double mastectomy to avoid the risk of hereditary breast cancer
is the latest in a flurry of news that puts Myriad in the
spotlight. Of late, the company has been in the news, following
the legal claims that challenge its patent landscape for its
flagship product - Bracanalysis test.
The Bracanalysis test provides a comprehensive analysis of BRCA1
and BRCA2 genes to assess 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. According to the Jolie's revelation in The New York
Times, she carried the 'faulty' BRCA1 gene. The inherited genetic
mutation put her at an 87% risk of breast cancer and 50% risk of
ovarian cancer compared with the average risk of 65%.
The public disclosure is likely to increase awareness about
Myriad's Bracanalysis test, which contributed 74% of total
revenues in the most recent quarter. Another upside was the
company's stellar earnings performance in the third quarter of
fiscal 2013. Last week, Myriad posted earnings beat of 17.9% over
the Zacks Consensus Estimate. The company also raised its outlook
for the ongoing fiscal reflecting robust growth trend.
Given the string of positive estimate revisions for the ongoing
and next fiscal, the Zacks Rank #2 (Buy) stock warrants a look.
Other players such as
), carrying a Zacks Rank #2, are also worth considering.