On Monday, small cap molecular diagnostic stock Myriad Genetics, Inc (NASDAQ: MYGN) suddenly sank 9.34% to $23.50 just before the market closed – meaning its probably a good idea to take a closer look at what happened yesterday plus compare the stock’s performance verses small cap peer Sequenom, Inc (NASDAQ: SQNM) and mid cap peer Hologic, Inc (NASDAQ: HOLX).
What is Myriad Genetics?
Small cap Myriad Genetics is a molecular diagnostic company focused on the discovery and commercialization of transformative tests to assess a person’s risk of developing disease, guide treatment decisions and assess risk of disease progression and recurrence. At the moment, Myriad Genetics has nine innovative products, a 390-strong sales force and thirteen pipeline tests in development.
Meanwhile, small cap Sequenom, Inc designs, develops, manufactures and markets innovative technology, instrumentation and tests that target and serve discovery and clinical research, and clinical molecular diagnostics markets while mid cap peer Hologic, Inc is a leading developer, manufacturer and supplier of premium diagnostic products, medical imaging systems and surgical products, with an emphasis on serving the healthcare needs of women.
What You Need to Know About Myriad Genetics
$MYGN Noridian announced it is pricing BRCA testing much lower, with $2795 going to $1500. WORSE than we had been expecting rayjay
Someone then replied: “Source?”
With that said and interestingly enough, Forbes noted on Friday that new options for Myriad Genetics at the $25.00 strike price became available last week for the May 2014 expiration.
It should also be mentioned that last August, Myriad Genetics beat earnings expectations and raised its guidance as fiscal fourth-quarter revenues rose 31% to $174.1 million and net income rose 51% to $44.1 million thanks to higher sales of diagnostic tests. Myriad Genetics now expects to earn between $1.87 and $1.94 per share for the fiscal year on revenue of $690 million to $710 million while Wall Street was expecting $1.87 per share on revenue of $664.8 million for the year.
Otherwise, it should be noted that Myriad Genetics has sued two privately held competitors to stop them from selling a genetic test that competes with its BRACAnalysis and these tests were launched in June after a Supreme Court ruling that companies cannot patent genes that are naturally found in the body (Note: Synthetically created genetic material, called complementary or cDNA, can be patented). This ruling sent Myriad Genetics’ shares down plus opens the door for competing tests and additional scientific research.
Share Performance: Myriad Genetics Vs. Sequenom, Inc and Hologic, Inc
On Monday, small cap Myriad Genetics fell 9.34% to $23.50 (MYGN has a 52 week trading range of $22.61 to $38.27 a share) for a market cap of $1.89 billion plus the stock is down 13.2% since the start of the year, down 12.8% over the past year and down 31.2% over the past five years. Here is a look at the share performance of Myriad Genetics verses Sequenom, Inc and Hologic, Inc:
As you can see, Myriad Genetics’s performance over the long term has been mixed as it has underperformed and Hologic, Inc but has out performed Sequenom, Inc:
Finally, here is a look at the latest technical charts for all three molecular diagnostic stocks:
The Bottom Line. Despite small cap Myriad Genetics’ fall yesterday, investors might want to sit tight and wait for some more concrete news rather than chatter on Tweeter or from other sources that is being picked up in the newswires.