Myriad Genetics Gets Extended Coverage for Prolaris Test
Molecular diagnostics and personalized medicine major Myriad Genetics, Inc. MYGN recently received extended Medicare coverage for its Prolasis test.
According to the company, Palmetto GBA (a Medicare Administrative Contractor that assesses molecular diagnostic technologies) issued a positive final Local Coverage Determination (LCD) to extend Medicare coverage of the Prolaris test to Medicare beneficiaries with favorable intermediate risk prostate cancer. This decision builds on the prior decision that provided coverage for men with low- and very low-risk prostate cancer. With this extended coverage, Prolaris is the first and only genetic test to receive Medicare coverage for favorable intermediate and low- or very low-risk prostate cancer in the U.S.
Notably, Prolaris is a novel 46-gene RNA-expression test that directly measures tumor cell growth characteristics to quantify the aggressiveness of prostate cancer and help better patient care. This test accurately measures the aggressiveness of prostate cancer and helps both physicians and patients take apt medical management decisions. The goal is to provide physicians with genetic information and help them tailor treatments based on patients’ individual risk profiles.
Considering the alarming rate at which prostate cancer is spreading, we are quite hopeful about the extended coverage of Prolaris test. As per recent data, among the newly diagnosed prostate cancer patients, 20% will be favorable intermediate risk prostate cancer. This is defined by National Comprehensive Cancer Network (NCCN) as a Gleason score of 3+4 or less. Taking the previous Medicare coverage decision into consideration, currently above 70% of Medicare patients with prostate cancer will have access to the test.
We are confident about the growing adaptability of this test post the Medicare coverage approval. Prolaris volumes increased 9% sequentially in the third quarter of fiscal 2017. The latest reimbursement facility will make the test more accessible to patients with intermediate risk prostate cancer, thereby bolstering Myriad Genetics’ revenue growth in this niche area.
According to a report by BCC Research, the prostate cancer global market is estimated to reach a worth of $65.1 billion by 2021, up from $47.2 billion in 2016 at a CAGR of 6.6%.Thus, the company clearly has bountiful prospects in this market.
Recent Developments
Myriad Genetics recently announced new data that reveals that the Prolaris test can accurately predict 10-year risk of metastases in men treated for prostate cancer.
The company also noted that it has made considerable progress with its kit-based versions of Prolaris in the international market and expects to file for CE Mark for the same by 2018.
In this regard we note that, for the past one month, Myriad Genetics has been trading above the Zacks categorized Medical - Biomedical and Genetics industry. The stock has gained 8.8%, comparing favorably with the industry’s decline of 4.4%.
Zacks Rank & Key Picks
Myriad Genetics currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader medical sector are Luminex Corporation LMNX, Inogen, Inc. INGN and Edwards Lifesciences, Inc. EW. Notably, Luminex and Inogen sport a Zacks Rank #1 (Strong Buy), while Edwards Lifesciences carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Luminex has an expected long-term adjusted earnings growth of almost 16.3%. The stock added roughly 8.9% over the last three months.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has a solid one-year return of around 84.6%.
Edwards Lifesciences has an expected long-term adjusted earnings growth of almost 15.2%. The stock added roughly 21.6% over the last three months.
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