Myriad Genetics falls as CMS rate reduction confirmed

|About: Myriad Genetics, Inc. (MYGN)|By:, SA News Editor

Shares of Myriad Genetics (MYGN) are off sharply in premarket trading.

The company has confirmed (via an 8-K) that the CMS NLA for CPT code 81211 is $1,438.14 — previously there was speculation that this was a clerical error.

Here's CMS, commenting: "The NLA for code 81211 was based on the median of MAC submitted prices and will be effective for tests performed on or after January 1, 2014."

There will be an extended public comment period (through January 27).

The sell-side is beginning to weigh in: JMP cuts MYGN to Market Underperform, price target is $15. Market chatter suggests Oppenheimer thinks the shares are headed to the mid-teens. Cowen reportedly says the shares are overvalued.

JPMorgan: "We expect payors will begin to influence physicians to use competitive tests, while leaving open the option for patients to use MYGN's test if they want to pay an additional cost out of pocket."

MYGN -13%