UPDATE: SunTrust Initiates Coverage on Myriad Genetics on Pricing Risk
10:25a ET October 11, 2013 (Benzinga)
In a report published Friday, SunTrust Robinson Humphrey analyst Amit Hazan initiated coverage on Myriad Genetics (NASDAQ: MYGN) with a Reduce rating and $17.00 price target.
In the report, SunTrust Robinson Humphrey noted, â€œOur due diligence leads us to believe that the most imminent threat from new competitors for BRACAnalysis is not market share loss, but pricing pressures. We believe private insurer re-evaluation is currently ongoing on a broad scale and could realistically drive the price down by as much as 50% over the next two years. The Street's sales growth expectations for both FY14 and FY15 imply little to no pricing pressure, and we view that as a significant risk. The recent CMS reduction of COLARIS reimbursement by 46% is a good proxy here.â€