Needham & Company Reiterates Strong Buy Rating on Myriad Genetics (MYGN) as Final LCD Issued for myPath Melanoma

Needham & Company analyst Stephen Unger reiterated a Strong Buy rating and $41.00 price target on Myriad Genetics (NASDAQ: MYGN) after the company announced the issuance of a final local coverage determination (LCD) for myPath Melanoma under Medicare's MolDx Program.

"This 23-gene test is designed to assist physicians with the diagnosis of melanoma when the status of a suspicious skin lesion remains uncertain after the use of traditional histopathology methods," Unger commented. "We initially estimate this incremental market opportunity at ~$150M (~100,000 annual patient tests with a target price of ~$1,500) with ~50% of patients enrolled in Medicare. We highlight that revenue generation from myPath Melanoma would be incremental to our FY19 and FY20 forecast. This announcement follows disclosure earlier in the week of a contract amendment with UnitedHealthcare to reinstate MYGN's prenatal testing business as an in-network service provider (e.g., lower patient out-of-pocket payments). Combined, we see these two developments providing positive support for our current expectations and potentially meaningful EPS upside over time."

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 $32.51 yesterday.

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