Myriad Genetics, Inc. MYGN has a market cap of $2.11 billion. The company has an expected earnings growth rate of 10.3% for the next three to five years.
Over the past three months, this Salt Lake City, UT-based company's share price has underperformed its industry . The stock has lost 35.4% in comparison with the industry's 4.7% decrease and the S&P 500's 5.3% decline.
However, on the solid performance of new products, the Counsyl buyout synergy and success of the Elevate 2020 program, along with augmenting reimbursements for the tests, the company seems to be well-positioned to deliver strong financial results in fiscal 2019.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment.
What's Working in Favor of the Stock?
Elevate 2020 Program Buoys Optimism
Myriad Genetics introduced the 'Elevate 2020' program (part of the company's recently-introduced, five imperatives) that targets to achieve $50 million in incremental operating income by fiscal 2020. During the first quarter of fiscal 2019, the company surpassed its $50-million annual profit target, with a decline of more than $16 million in the organic quarterly expenses since the initiation of the program. Per Myriad Genetics, the program resulted in an impressive 550-basis point improvement in organic adjusted operating margin.
Impressive Reimbursement Update
Myriad Genetics is expecting acceptance of the landmark GUIDED publication for the GeneSight test by the end of the second quarter of fiscal 2019. If accepted, the company plans to send a reconsideration request to Medicare for expanding access to primary care physicians on support from GUIDED and IMPACT studies.
During the las t report ed quarter, the company received a draft local coverage determination for the myPath Melanoma test from Noridian. On finalization, Myriad Genetics expects myPath Melanoma to begin contributing to the top line in the fourth quarter of fiscal 2019. The company also received coverage from seven commercial payers.
Encouraging Pipeline Expansion
Myriad Genetics is targeting expansion of its pipeline with products for diverse indications - including oncology, women's health, urology, dermatology, autoimmune and inflammatory disease, and neuroscience. The company is upbeat about its consistent product diversification strategy, which shows significant momentum in Vectra DA volumes. Myriad Genetics remains optimistic about the strong clinical evidence for Vectra DA.
In this regard, the company announced the results of two studies, confirming Vectra test's ability to significantly predict response to tofacitinib and track response to rituximab in patients with rheumatoid arthritis in October.
Other Key Picks
Veeva Systems' long-term earnings growth rate is estimated at 19.5%. The stock currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Amedisys' long-term earnings growth rate is projected at 18.8%. The stock presently carries a Zacks Rank #2.
Illumina's long-term earnings growth rate is expected at 23.4%. The stock currently carries a Zacks Rank of 2.
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