Myriad Genetics, Inc. (NASDAQ:MYGN) announced the presentation of positive study data, supporting the performance of Foresight and Prequel prenatal tests by Myriad Women’s Health business unit. The data will be presented at the 2019 American College of Medical Genetics and Genomics (ACMG) Annual Clinical Genetics Meeting.
The results highlight Foresight Carrier Screen tests’ ability to discover 45% more couples at risk to deliver a child with cystic fibrosis than present guideline-based testing. Notably, Myriad Genetics’ Foresight test has a rigorous disease selection, concentrating on more than 175 conditions.
Furthermore, the outcome of the study confirms Prequel Prenatal Screen’s ability to provide dependable results to 99.9% of patients, spanning the complete range of fetal-fraction levels.
Market Potential
Per Energias Market Research, the global genetic testing market is likely to reach a worth of $19.11 billion in 2024 at a CAGR of 12.2% from 2018-2024. Growing investment in research and development activities for combatting genetic disorders, and rising awareness along with increasing government initiatives are expected to drive demand.
Moreover, Myriad genetics estimates the expanded carrier screening non-invasive prenatal testing markets to grow to around 3 million tests performed in the United States over the next five years. Hence, we believe that the recent development will help Myriad Genetics to boost top-line contributions from the prenatal tests.
Prenatal Tests Doing Well
Myriad Genetics expanded the prenatal testing portfolio with the addition of ForeSight and Prelude tests after acquiring Counsyl.
The company recorded strong testing volumes from new products, growing to 75% of the total test volumes in second-quarter fiscal 2019 from 1% in fiscal 2013. In second-quarter fiscal 2019, Myriad Genetics witnessed 22% year-over-year rise in GeneSight testing volumes. It also witnessed double-digit year-over-year rise in prenatal testing volumes, setting a new volume record.
The company expects to see double-digit growth in new product volume in fiscal 2019 along with a significant expansion in reimbursement coverage.
For the second half of fiscal 2019, management expects GeneSight volumes to rise in double digits along with modest volume growth in prenatal, Vectra, Prolaris and EndoPredict tests.
Price Performance
Over the past year, Myriad Genetics’ share price has outperformed the industry. The stock gained 7.8% against the industry’s 5.4% decline.
Zacks Rank & Stocks to Consider
Myriad Genetics currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are Penumbra, Inc. (NYSE:PEN) , Amedisys, Inc. (NASDAQ:AMED) and Illumina, Inc. (NASDAQ:ILMN) .
Penumbra’s long-term earnings growth rate is expected at 20.9%. The stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amedisys’ long-term earnings growth rate is projected at 19.8%. The stock currently carries a Zacks Rank #2.
Illumina’s long-term earnings growth rate is estimated at 21.5%. The stock also carries a Zacks Rank of 2 at present.
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