Myriad Genetics Inc.
) launched its major pipeline product myRisk Hereditary Cancer.
The company's latest offering is a multi-gene diagnostic test to
analyze 25 genes related with eight major cancers - breast,
ovarian, prostate, colorectal, endometrial, gastric, pancreatic
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We note that the launch of myRisk Hereditary Cancer at the onset
of fiscal 2014 is in line with Myriad's timeline. This pan-cancer
panel test marks a pioneering venture in the field of molecular
Myriad is launching myRisk Hereditary Cancer in a phased
approach, starting from an early-access, clinical-experience
program to a finite number of medical and scientific superiors.
The company will then begin an expanded access program later in
In order to boost acceptance of the novel test, Myriad plans to
demonstrate positive clinical validity data on myRisk Hereditary
Cancer diagnostic test at The Collaborative Group of the
Americas' annual meeting on Inherited Colorectal Cancer (CGA) in
October and the San Antonio Breast Cancer Symposium later in
Earlier in May this year, Myriad revealed its plan to launch
myRisk Hereditary Cancer test, the foremost comprehensive
pan-cancer panel test. At first, the company will target cancers
of the breast, colon, ovaries, endometrium, pancreas and
melanoma. Later, the company plans to extend the test application
to lung, prostate and other types of cancer.
As reported earlier, Myriad expects to keep the list price of
myRisk Hereditary Cancer test in the range of $4,000−$4,500. The
test has an estimated gross margin of about 87%.
The test will enable the company to serve a huge market
opportunity of $5 billion in 2018 following Myriad's expansion
phase. As per the company, the time period 2013-2015 will be the
conversion phase towards the pan-cancer panel. Evidently, the
company plans to transform the entire hereditary cancer market
through fiscal 2015 as it will discontinue its major legacy
products (Bracanalysis, Colaris, Colaris AP, Melaris and Panexia)
following the conversion of the market towards myRisk.
Per management, Myriad's pan-cancer panel is credited to be a
substantial positive catalyst to foster long-term growth.
Further, we believe that the concept of a novel pan-cancer panel
should dilute Myriad's dependence on its current flagship
Bracanalysis test. We are hopeful that expansion of indications
on myRisk will accelerate growth over the long haul.
Currently, the stock carries a Zacks Rank #2 (Buy). Other stocks
that warrant a look are
Biogen Idec Inc.
). These stocks carry Zacks Rank #1 (Strong Buy).