Oppenheimer Trims Price Target on Myriad Genetics (MYGN) After Larger price Cut from Noridian

March 4, 2013 8:50 AM EST
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Price: $15.79 -0.13%

Rating Summary:
    6 Buy, 16 Hold, 7 Sell

Rating Trend: = Flat

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    Up: 5 | Down: 5 | New: 0
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Oppenheimer trimmed its price target on Perform-rated Myriad Genetics (NASDAQ: MYGN) from $31 to $29 after Noridian, the Medicare contractor for Utah, provided preliminary pricing for CY2013 molecular pathology codes.

Noridian reduced Integrated BRACAnalysis pricing ~16.3%, which is worse than anticipated, the firm noted.

"MYGN remains committed to FY13 guidance as Medicare represents only 10% of revenue," analyst David Ferreiro, Ph.D. ntoes. "Our concern lies beyond 2013, as commercial payors may follow with price reductions. We note the discount private payors previously received was due in part to differences in the addressable market relative to the Medicare charter. As the BRACAnalysis Medicare price is now ~8.1% below the average commercial price, we see the potential for a step down in private payor reimbursement as MYGN renegotiates contracts."

For an analyst ratings summary and ratings history on Myriad Genetics click here. For more ratings news on Myriad Genetics click here.

Shares of Myriad Genetics closed at $25.46 yesterday.

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