Myriad Genetics, Inc. MYGN is making notable strides in its key strategic areas, which is poised to assist it develop within the upcoming quarters. New product introductions and enhancements are gaining traction with prospects. There’s rising optimism in regards to the firm’s big potential within the oncology area. In the meantime, the impacts of macroeconomic strain and fierce rivalry may be worrisome for Myriad Genetics’ efficiency.
Up to now yr, this Zacks Rank #3 (Maintain) firm has outperformed each the business and the S&P 500 composite. Shares have surged 63.8% in contrast with the industry’s 0.7% rise and the S&P 500’s achieve of 25.7%.
The famend genetic testing and precision medication firm has a market capitalization of $2.51 billion. MYGN’s earnings surpassed estimates in every of the trailing 4 quarters, delivering a median shock of 213.4%.
Let’s delve deeper.
Tailwinds for MYGN
Progress With Three Strategic Priorities: Myriad Genetics is advancing in growing top-quality merchandise, constructing new enterprise capabilities and executing key initiatives to drive long-term progress and profitability. MYGN is gaining shares within the hereditary most cancers market. The prenatal enterprise grew 25% yr over yr within the second quarter of 2024, with a 12% enhance in testing volumes because of ongoing initiatives to enhance common promoting costs (ASPs).GeneSight revenues elevated 22% from the comparable 2023 interval on practically 129,000 exams within the second quarter.
Myriad Genetics introduced a number of new strategic partnerships, together with a collaboration with the Nationwide Most cancers Heart Hospital East in Japan to check the prognostic and predictive worth of molecular residual illness (MRD) testing. It focuses its capital on new tech-enabled instruments and capabilities, innovation and industrial capabilities that can enhance the client expertise, such because the Labs of the Future program.
Product Launches and Upgrades: Myriad Genetics continues to achieve buyer acceptance for its slew of merchandise. In June 2024, the corporate launched the Foresight Provider Screening check with a brand new Common Plus Panel. The anticipated guideline growth by the American Faculty of Obstetricians and Gynecologists for provider screening is prone to broaden the market alternative for this check and drive elevated adoption and income per check enhancements.
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Earlier this yr, the corporate obtained a patent from the US Patent and Trademark Workplace, which bolsters its potential to ship a tumor-informed, high-definition MRD assay to the market. It additionally made enhancements to the GeneSight Psychotropic check — a pharmacogenomic check for psychological well being medicines — in 2023.
Big Potential in Oncology Testing: Myriad Genetics has recognized the important thing alternatives to develop its Oncology enterprise by increasing companion diagnostics, capturing markets by way of new scientific pointers and introducing new choices. Within the second quarter of 2024, progress in hereditary most cancers testing revenues mirrored the corporate’s ongoing efforts to enhance common income per check by increasing payer protection and bettering income cycle processes, that are serving to cut back the no-pay fee. The addition of Intermountain Precision Genomics has broadened its oncology testing choices, bringing Exact Tumor and Exact Liquid exams in-house.
As a part of the strategic reorganization of its European operations, the corporate has offered its EndoPredict enterprise to Eurobio Scientific, giving the proper to promote Prolaris in vitro diagnostic kits outdoors of the US. The reorganization and sale are anticipated to spice up MYGN’s adjusted working revenue yearly by greater than $4 million by streamlining the price construction. The event of the Exact MRD assay additionally advances.
Components Weighing on MYGN
Macroeconomic Considerations: With energetic operations internationally, the corporate is liable to a number of regulatory, political, operational, monetary and financial dangers. The curtailment of commerce and different enterprise restrictions and international inflationary strain can lead to increased prices of retaining expert staff, producing check outcomes and procuring lab provides, denting its profitability. Within the second quarter, Penumbra recorded a 4% bounce in promoting, basic and administrative bills because of a $2.6 million enhance in compensation prices.
Rising Competitors: Myriad Genetics is at present going through rising competitors in its key BRACAnalysis market as extra gamers make their entry. The corporate expects the rivalry to accentuate, with different firms probably launching molecular diagnostic exams. In our opinion, aggressive headwinds may push down costs for the high-priced exams supplied by Myriad Genetics. This may deter margin enchancment sooner or later.
MYGN Estimate Development
Up to now 30 days, the Zacks Consensus Estimate for the corporate’s 2024 earnings has elevated 11.1% to 10 cents.
The Zacks Consensus Estimate for 2024 revenues is pegged at $840.3 million, suggesting an 11.6% rise from the year-ago reported quantity.
Prime MedTech Shares
Some better-ranked shares within the broader medical area are TransMedix Group TMDX, AxoGen AXGN and Boston Scientific BSX. Whereas TransMedix Group at present sports activities a Zacks Rank #1 (Sturdy Purchase), AxoGen and Boston Scientific every carry a Zacks Rank #2 (Purchase). You may see the complete list of today’s Zacks #1 Rank stocks here.
TransMedix Group’s earnings are anticipated to surge 259.7% in 2024. Its shares have soared 156.5% in contrast with the business’s 17.5% rise up to now yr.
TMDX’s earnings surpassed the Zacks Consensus Estimate in every of the trailing 4 quarters, the common shock being 287.5%.
AxoGen has an estimated 2024 earnings progress fee of 94.1% in contrast with the business’s 12.8%. Shares of the corporate have soared 165.9% in contrast with the business’s 17.6% rise over the previous yr.
AXGN’s earnings surpassed estimates in every of the trailing 4 quarters, the common shock being 96.5%.
Boston Scientific has an estimated earnings progress fee of 17.1% in contrast with the business’s 14.9%. Shares of the corporate have rallied 57.5% in contrast with the business’s 19.5% rise over the previous yr.
BSX’s earnings surpassed estimates in every of the trailing 4 quarters, the common shock being 7.2%.
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Boston Scientific Corporation (BSX) : Free Stock Analysis Report
Myriad Genetics, Inc. (MYGN) : Free Stock Analysis Report
AxoGen, Inc. (AXGN) : Free Stock Analysis Report
TransMedics Group, Inc. (TMDX) : Free Stock Analysis Report
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