UPDATE: JMP Securities Downgrades Myriad Genetics as Survey Hints at More Rapid Share Losses Than Anticipated
In a report published Tuesday, JMP Securities analyst J.T. Haresco III downgraded the rating on Myriad Genetics (NASDAQ: MYGN) from Market Outperform to Market Perform.
In the report, JMP Securities noted, “We are downgrading Myriad Genetics from Market Outperform to Market Perform. We surveyed 28 oncologists and ob/gyns in recent weeks regarding their sensitivity to pricing and test accuracy, as well as their views on what percentage of BRCA1/BRCA2 testing would migrate to other tests. Our respondents indicate that 40% of test volumes could migrate to other manufacturers within 24 months. This is almost a 2x order of magnitude more than we had previously modeled. On a separate matter, our industry contacts voiced a great deal of concern that the new reimbursement levels are, at best, a clerical error that will not be resolved before the implementation of the new codes, and at worst, the correct reimbursement levels and a reflection of CMS's ongoing efforts to revise the calculus behind how molecular tests are reimbursed. We are not making any drastic changes to our models until we gain further clarity on this issue.”
Myriad Genetics closed on Monday at $26.98.
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