Cory Renauer
Value, research analyst, biotech, small-cap

Patent And Reimbursement Risks Already Priced In At Myriad Genetics

In case you haven't noticed, the market has a tendency to overreact to bad news, especially when the extent of trouble isn't immediately clear. Myriad Genetics' (NASDAQ:MYGN) stock price has been hit with a double whammy of uncertainty. The unofficial, and allegedy error induced, cut to its flagship diagnostic's reimbursement rate is frustrating enough to drive anyone mad. The effects of the Supreme Court decision resulting in the upholding of some but not all of its BRCAnalysis patents is also still unclear.

Expecting a complete derailment

Using a DCF model, Myriad's recent price of about $24-$25 suggests the company's top line growth will not only slow, but become negative. The market also seems convinced that the company's operating...

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