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Myriad Genetics, Inc. MYGN recently announced the publication of a new analysis regarding its GeneSight Psychotropic test in the peer-reviewed journal Psychiatry Research. The analysis demonstrates that the combinatorial approach available in the GeneSight test is better than single-gene testing for predicting patient outcomes and medication blood levels.
Further, the study used data from the Genomics Used to Improve DEpression Decisions (“GUIDED”) randomized-controlled trial to evaluate the ability of the combinatorial approach of the GeneSight test, unlike Clinical Pharmacogenetics Implementation Consortium single-gene recommendations. It should be noted in this regard that the GUIDED study is the largest pharmacogenomic randomized controlled trial in mental health.
For investors’ note, the GeneSight test evaluates how variations in multiple genes may influence an individual’s outcomes with few FDA-approved medications which are usually prescribed for the treatment of depression, anxiety and other psychiatric conditions.
Notably, this is the second study analyzing the combinatorial approach of the GeneSight test to be published in Psychiatry Research.
The recent favorable study outcome is expected to aid Myriad Genetics to significantly expand its customer base, thereby boosting its Molecular Diagnostic testing business globally.
Significance of the Finding
Per a medical expert associated with the study, the analysis illustrates the superior ability of the combinatorial pharmacogenetic testing in predicting variation in medication blood levels. In turn, this may lead to improved patient outcomes. Further, the expert believes that the study provides compelling evidence about the clinical validity of the combinatorial pharmacogenomic test for patients having major depressive disorder, having at least one prior medication failure.
Per management, the analysis illustrates the accuracy of the combinatorial approach of the GeneSight test to predict blood drug levels and identify more patients with significant gene-drug interactions who might be missed by single-gene testing.
Per a report by MarketsandMarkets, the global genotyping assay market is expected to grow from $11.8 billion in 2018 to $31.9 billion by 2023 at a CAGR of 22%. Factors like technological advancements, increasing incidence of genetic diseases and growing importance of genotyping in drug development are likely to drive the market.
Given the market potential, the favorable study outcome is expected to significantly boost the business.
Recent Developments in Molecular Diagnostics
Of late, Myriad Genetics has been witnessing a slew of developments.
The company, this month, launched the new Vectra Cardiovascular Risk assessment that can predict the risk for cardiovascular events in patients with rheumatoid arthritis.
Myriad Genetics, in January this year, announced that it will receive reimbursement for its BRACAnalysis Diagnostic System in Japan. Notably, BRACAnalysis was approved by Japan’s Ministry of Health, Labour and Welfare (“MHLW”) in October 2020 as a companion diagnostic and the reimbursement decision is now in effect.
Further, in January this year, Myriad Genetics announced its entry into a strategic collaboration with Illumina, Inc. ILMN for improved outcomes in oncology. Per the terms of the time-limited exclusive agreement, Illumina will create a kit-based version of Myriad Genetics’ myChoice companion diagnostic (CDx) test for the international market.
Also in January, the company announced the receipt of its first reimbursement decision for the myChoice Diagnostic System, which helps determine whether women with ovarian cancer will benefit from the PARP inhibitor Zejula (niraparib). Notably, myChoice was approved by Japan’s MHLW in September 2020 as a companion diagnostic for this indication, whose reimbursement decision is now in effect.
Myriad Genetics had announced the expansion of its myChoice tumor testing in various European markets and China in November 2020.
Shares of the company have gained 45.6% in the past year compared with the industry’s 15.5% growth and the S&P 500’s 18.6% rise.
Zacks Rank & Key Picks
Currently, Myriad Genetics carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Hologic, Inc. HOLX and IDEXX Laboratories, Inc. IDXX.
Hologic’s long-term earnings growth rate is estimated at 15.4%. The company presently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
IDEXX’s long-term earnings growth rate is estimated at 15.8%. It currently carries a Zacks Rank #2 (Buy).
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