Myriad Genetics Inc. (NASDAQ:MYGN) is in the midst of a volatile trading session Monday, with one apparent cause seemingly associated with clerical errors made a couple of months ago by two Medicare contractors in the pricing of the company's BRACAnalysis, a genetic test for hereditary breast and ovarian cancer.
Based in Salt Lake City, Myriad addressed the clerical mistakes in a U.S. Securities and Exchange Commission Form 8-K filed Sept. 30, saying in a notification under Regulation Fair Disclosure:
"On September 30, 2013 the Centers for Medicare & Medicaid Services (NYSE:CMS) released finalized pricing for the new molecular pathology codes for 2014 and beyond. As expected, CPT code 81211 (BRCA1 & BRCA2 full sequence) and CPT code 81213 (BART large rearrangements) were priced at $2,795.09 and $587.12 respectively, which was identical to the initial median pricing submitted by the Medicare Administrative Contractors. This will be the finalized Medicare pricing reflected in the 2014 Clinical Laboratory Fee Schedule.
"CMS also posted the molecular pathology codes for the remaining three months of 2013. Unfortunately, Noridian Healthcare Solutions LLC (the Medicare contractor for Utah) and Palmetto GBA made a clerical error in their pricing for CPT code 81211 (BRCA1 & BRCA2 full sequence). This error was confirmed by Myriad in a telephone call to both Noridian and Palmetto this afternoon. During the call, Noridian informed Myriad that it will contact CMS and immediately correct the pricing for CPT code 81211 to $2,795.09. We believe that it may take a week or two for this correction to be reflected by CMS."
Another contributor to Myriad's volatile trading session Monday may be the announcement of a countersuit filed against the company in a U.S. District Court in California by the privately held Invitae Corp., headquartered in San Francisco. Myriad previously filed a patent-infringement lawsuit against Invitae in a U.S. District Court in Utah. Both suits were filed last week, as Patent Docs reported. Myriad has been pursuing multiple intellectual-property claims against competitors since July, as mentioned in "Myriad Genetics' Share Price May Soon Challenge 52-Week High."
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in MYGN over the next 72 hours.