MYGN's GeneSight Test Proven Superior to TAU: Stock to Gain?

Myriad Genetics, Inc. MYGN recently published results from a meta-analysis in the Journal of Clinical Psychopharmacology, stating the superiority of the company’s GeneSight Psychotropic test over treatment-as-usual (TAU). The large-scale data analysis, along with merging data from many independent studies, provides evidence of the clinical utility of the GeneSight Psychotropic test for patients with major depressive disorder (MDD) who have experienced at least one treatment failure.

The recent development is expected to bolster the company’s Pharmacogenomics business.

MYGN Stock’s Likely Trend Following the News

Myriad Genetics’ shares have moved south slightly by 0.5% to $6.79 on Wednesday.

The company has been gaining synergies from its GeneSight Psychotropic test, backed by its proven clinical efficacy. Peer-reviewed research in Psychiatry Research confirmed that the combinatorial approach used by GeneSight exceeded the effectiveness of single-gene testing at predicting sertraline metabolism in patients with MDD. Accordingly, we expect the latest publication of favorable data for GeneSight to boost the market sentiment toward MYGN stock in the upcoming days.

Myriad Genetics has a market capitalization of $631.8 million. It has a long-term EPS growth rate of 33.1% compared with the industry’s 21.1%. MYGN delivered a trailing four-quarter average earnings surprise of 210%.

About MYGN’s GeneSight Test

The GeneSight Psychotropic test is the pharmacogenomic test for 64 medications commonly prescribed for depression, anxiety, ADHD and other psychiatric conditions. The GeneSight test can help inform clinicians about how a patient’s genes may impact how they metabolize and/or respond to certain psychiatric medications.

About MYGN’s Meta-Analysis

The study analyzed six prospective, controlled trials to assess the impact of the GeneSight Psychotropic test on clinical outcomes in a total of 3,532 unique adults with MDD who had at least one prior treatment failure. The trials included in the meta-analysis incorporated the widely used depression questionnaires, the Hamilton Depression Rating Scale and the Patient Health Questionnaire, to assess the severity of depression symptoms.

More on Favorable Meta-Analysis Data

Compared to TAU, patients in the GeneSight arm were 41% more likely to achieve remission and 30% more likely to achieve a response. Myriad Genetics plans to submit this data to payers as part of ongoing efforts to increase patient access to the GeneSight test and help patients achieve remission from depression.

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Industry Prospects Favoring MYGN

Per Verified Market Reports, the Mental Health Tester market size is expected to reach $5.10 billion by 2033 at a compound annual growth rate of 8.6% from 2026 to 2033. The market has gained significant traction in recent years, primarily driven by the rising awareness of mental health issues and the increasing demand for effective assessment methods.

Another Development by Myriad Genetics

In June, Myriad Genetics shared new clinical data on molecular residual disease (MRD) from the MONSTAR-SCREEN 3 study — a collaboration with the National Cancer Center Hospital East in Japan — demonstrating that Myriad’s ultra-sensitive Precise MRD Test can detect and monitor ctDNA in cancer patients.

MYGN Stock Price Performance

In the last three months, MYGN’s shares have gained 38% compared with the industry’s growth of 7.4%.

MYGN’s Zacks Rank & Key Picks

Myriad Genetics currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Envista NVST, Medpace MEDP and Phibro Animal Health PAHC, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Envista have rallied 16.7% in the past year compared with the industry’s 5.2% growth. Its earnings yield of 5.4% has also outpaced the industry’s -0.9% yield. NVST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.5%.

Medpace’s shares have rallied 31.3% in the past year. MEDP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 13.9%. It has a historical EPS growth rate of 30.9% compared with the industry’s 0.6%.

Shares of Phibro have jumped 29.1% in the past year against the industry’s 14% decline. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.9%. It has an earnings yield of 6.3% compared with the industry’s -0.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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