In line with its product expansion strategy, Myriad Genetics, Inc. MYGN has come up with seven new commercial coverage decisions for the company's market-leading genomic test with respect to prostate cancer, Prolaris.
Following multiple reimbursement approvals over the last few months, the molecular diagnostics and personalized medicine major announced that in aggregate, the payers represent six million new covered lives for Prolaris. Plus, per the company, the payers include one top-25 commercial insurer in the United States.
Myriad noted that this acceleration in commercial insurer coverage for Prolaris has come close on the heels of the recently updated National Comprehensive Cancer Network (NCCN) guidelines, which support Prolaris as the standard of care in making treatment decisions for patients suffering low and favorable-intermediate risk prostate cancer.
NCCN Guidelines and Prolaris
The updated NCCN guidelines, released in February 2018, revised the medical rules for prostate cancer treatment and broadly included biomarker testing for the same indication. As stated earlier, the changes include new language backing Prolaris as standard of care in taking therapeutic decisions for patients with low and favorable-intermediate risk prostate cancer.
The reworked NCCN guidelines accordingly instilled confidence in Myriad Genetics to receive expanded reimbursement coverage for certain tests in the near term. Per the company, certain payers have already updated their policies based on these NCCN rules including the likes of 14 Medicaid states and a favorable Prolaris medical policy decision from several regional payers along with the company's first Blue Cross Blue Shield plan.
Prospects of Prolaris
With this development, Prolaris now provides insurance coverage to 50% of prostate cancer patients in the United States. The company's growing prospects in the fast-expanding market for prostate cancer tests are also encouraging.
Per a report by BCC Research, the prostate cancer global market is estimated to reach a value of worth $65.1 billion by 2021, up from $47.2 billion in 2016 at a CAGR of 6.6%. Thus, the company clearly boasts bountiful prospects in this market.
Share Price Performance
Over the past 30 days, shares of Myriad Genetics have outperformed the industry . The stock has rallied 24.9% compared with the industry's 3% increase.
Zacks Rank and Key Picks
Myriad Genetics currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader medical sector are Intuitive Surgical ISRG , Illumina, Inc ILMN and Amedisys, Inc. AMED . While Intuitive Surgical and Illumina sport a Zacks Rank #1 (Strong Buy), Amedisys carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Intuitive Surgical has an expected long-term earnings growth rate of 12.1%.
Illumina has an expected long-term earnings growth rate of 20%.
Amedisys has an expected long-term earnings growth rate of 17.5%.
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