Myriad Genetics Completes Strategic Alternatives for Autoimmune Business
January 05, 2021 at 04:31 pm EST
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Myriad Genetics, Inc. (NasdaqGS:MYGN) announced the completion of its strategic business unit and products review. Myriad's Autoimmune business includes the Vectra assay, an advanced multi-protein biomarker blood test to help patients and healthcare providers gain an objective measure of rheumatoid arthritis, or RA, disease activity. The Vectra score is designed to reveal the effectiveness of a given RA treatment plan, predicting radiographic progression, and guiding personalized medical management decisions to improve outcomes. Prior to the coronavirus pandemic, revenue for Vectra consistently exceeded $40 million per year. In November 2020 on its earnings call, Myriad Genetics announced that it is also pursuing strategic alternatives for two other businesses: Myriad RBM, which provides contract research services for the pharmaceutical industry, and Myriad Dermatology, which includes the myPath Melanoma diagnostic test. The restructuring of Myriad International operations will focus direct selling efforts on market opportunities in Germany, France, and Japan, where the company said there is increasing demand for companion diagnostic, hereditary cancer, and kit-based products. Remaining international markets will be served through alternative business models, including authorized distributor partnerships. This realignment is designed to reduce operating costs and support growth, leading to approximately $5 million in incremental cost savings upon full implementation. Myriad recently announced that the German Federal Joint Committee successfully completed the method evaluation assessment for the EndoPredict breast cancer prognostic test and reached a "positive" reimbursement decision. The company also announced that it is in the process of licensing its myChoice CDx companion diagnostic test to leading pathology institutes in Germany and France. In addition, Myriad will focus on large Asian markets such as Japan, which now represent the largest segments of its international business. Myriad has seen significant increases in BRACAnalysis CDx test volume in Japan with total revenue increasing 200% year-over-year to $7.5 million in the September 2020 quarter. Myriad also recently received Japanese regulatory approval for BRACAnalysis CDx as a companion diagnostic for the PARP inhibitor olaparib for use in pancreatic and prostate cancer. These approvals increase the total addressable market for Myriad's companion diagnostic tests in Japan to approximately 60,000 patients per year.
Myriad Genetics, Inc. is a genetic testing and precision medicine company. The Company develops and offers genetic tests that help assess the risk of developing disease or disease progression and guide treatment decisions across medical specialties where genetic insights can significantly improve patient care and lower healthcare costs. The Company is focused on three key areas where it has specialized products, capabilities, and expertise: Oncology, Women's Health and Mental Health. In oncology, it offers testing for patients who have cancer and companion diagnostic tests that work with corresponding drugs and treatments. It also offers the SneakPeek Early Gender DNA Test which can reveal a baby's gender as early as six weeks into pregnancy. The Companyâs testing products include MyRisk, BRACAnalysis, BRACAnalysis CDx, MyChoice CDx, Prolaris, EndoPredict, Foresight, Prequel, Precis Tumor Test, Precise Liquid Test, SneakPeek and GeneSight.