SALT LAKE CITY - Myriad Genetics , Inc. (NASDAQ:MYGN) has announced multiple research collaborations focusing on the application of molecular residual disease (MRD) testing in breast cancer management using its Precise MRD test. These studies aim to evaluate the predictive power of circulating tumor DNA (ctDNA) levels in various treatment and monitoring scenarios.
One of the key collaborations is with The University of Texas MD Anderson Cancer Center, where researchers are studying whether ctDNA can predict responses to pembrolizumab and hormonal therapy in patients with HR-positive inflammatory breast cancer who have not achieved a complete pathological response at surgery. Another study at The University of Rochester Medical Center is investigating the correlation between ctDNA levels and nodal involvement to potentially assist in surgical decision-making for patients with newly diagnosed HR-positive breast cancer.
The MONITOR-breast study, a multicenter prospective trial involving 650 patients, is designed to ascertain the prognostic value of ctDNA levels in relation to neoadjuvant and adjuvant therapy across all breast cancer subtypes. It also seeks to determine if ctDNA can enable earlier detection of recurrence compared to standard imaging techniques.
In Japan, the National Cancer Center Hospital East is leading the JBCRG-C11 (CREA) study to evaluate the maintenance of complete response with trastuzumab deruxtecan in HER2-positive advanced or metastatic breast cancer patients, and whether ctDNA levels can guide therapy optimization.
A collaboration with Aptitude Health aims to assess ctDNA levels in high-risk patients at various treatment stages within community oncology settings. Myriad's Chief Scientific Officer, Dale Muzzey, highlighted that breast cancer often presents low ctDNA levels, making MRD testing challenging. However, the company's Precise MRD test is designed to track up to 1,000 tumor-specific variants via whole-genome sequencing, which could enhance the sensitivity of MRD testing in breast cancer.
Myriad Genetics is a leader in genetic testing and precision medicine, offering tests that assess disease risk, guide treatment decisions, and aim to improve patient care while reducing healthcare costs. The company's Precise MRD test is currently available for research purposes in collaboration with academic and pharmaceutical investigators.
This announcement is based on a press release statement and comes amid Myriad's ongoing development of its Precise MRD test to meet the needs of cancer patients and research partners. The company has previously engaged in other MRD studies, including one with Memorial Sloan Kettering Cancer Center and a pan-cancer study in Japan. Myriad Genetics cautions that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from what is anticipated.
In other recent news, Myriad Genetics reported second-quarter revenues of $211.5 million, exceeding consensus expectations. As a result, the company raised its 2024 guidance to an estimated $835-845 million. Analyst firms, including Wolfe Research, Scotiabank (TSX:BNS), Jefferies, and TD (TSX:TD) Cowen, reacted positively to these developments, raising their price targets for Myriad Genetics. In other company news, Myriad Genetics discontinued part of its GeneSight study due to disparities in baseline hospital resource utilization and costs between the tested and control groups. The company has not disclosed any plans for future studies to replace the discontinued analysis.
Wells Fargo (NYSE:WFC) highlighted several companies in its list of high-conviction ideas for the fourth quarter. The firm anticipates that Fair Isaac (NYSE:FICO) Corporation will increase its scores prices across various sectors, and that Las Vegas Sands (NYSE:LVS) Corp. is positioned for an attractive fourth quarter. Wells Fargo also noted that TC Energy (NYSE:TRP) Corporation is set to spin out its Liquids business, and that Willis Towers Watson (NASDAQ:WTW) is the most undervalued among its peers.
The firm also expressed confidence in the risk/reward profile for Annexon, Inc., Arvinas, Inc., and Axsome Therapeutics (NASDAQ:AXSM), Inc., anticipating positive clinical data and market reactions. Myriad Genetics is also favored for sustained growth into 2025. Conversely, Wells Fargo maintains an Underweight rating on Tesla (NASDAQ:TSLA), Inc., citing declining delivery growth. Lastly, Ulta Beauty (NASDAQ:ULTA), Inc. faces potential headwinds, with competitive challenges likely to impact long-term targets. These are the recent developments based on independent sources and clear evidence.
InvestingPro Insights
Myriad Genetics' recent announcement of multiple research collaborations for its Precise MRD test in breast cancer management aligns with the company's growth trajectory and market position. According to InvestingPro data, Myriad has shown strong revenue growth, with a 14.78% increase in the last twelve months as of Q2 2024, reaching $802.2 million. This growth is particularly noteworthy given the company's focus on innovative genetic testing and precision medicine.
InvestingPro Tips highlight that 6 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for Myriad's financial performance. This optimism may be linked to the potential success of the Precise MRD test and other products in the company's portfolio.
Despite not being profitable over the last twelve months, with an operating income margin of -12.88%, analysts predict that Myriad Genetics will be profitable this year. This projection could be influenced by the company's strategic collaborations and the potential commercial success of its MRD testing technology.
The stock has shown a significant price uptick over the last six months, with a 28.52% total return, indicating growing investor confidence in Myriad's prospects. This aligns with the company's efforts to expand its research partnerships and potentially capture a larger share of the precision medicine market.
It's worth noting that Myriad Genetics operates with a moderate level of debt, which may provide financial flexibility for continued research and development initiatives like the Precise MRD test.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights on Myriad Genetics. There are 8 more InvestingPro Tips available, which could provide further context for the company's financial health and market position.
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