Improved Outlook for Myriad Genetics

We're raising our fair value estimate on the narrow-moat firm after the unveiling of a new cancer product.

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Myriad Genetics Inc
(MYGN)

We are raising our fair value estimate for narrow-moat

We view riskScore as the fourth generation of Myriad’s hereditary cancer products and believe it is a tactful use of Myriad’s proprietary database of cancer variations. Hereditary cancer testing can often lead to vague answers for a wide swath of patients, as fewer than 10% of women at risk of breast cancer carry a clinically actionable mutation. The new product evaluates a woman's risk of developing breast cancer by combining genetic markers throughout the genome with the patient’s family and clinical history. The score is a simple percentage risk of developing breast cancer for a given patient, which is compared with the risk of the overall population. We believe it will take time to gain momentum and could attract patients who are not necessarily utilizing myRisk now but want to understand if they need MRIs each year.

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About the Author

Karen Andersen, CFA

Strategist
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Karen Andersen, CFA, is a sector director, AM Healthcare, for Morningstar*. In addition to leading the sector team, she covers biopharma firms in the US and Europe, focusing mostly on large-cap firms with foundations in biologic or gene-based medicines.

Before joining Morningstar in 2005, Andersen received a master’s degree in business administration from the Jones Graduate School of Business at Rice University, where she served as senior healthcare analyst for the M.A. Wright Fund and earned the distinction of Jones Scholar. She also holds the Chartered Financial Analyst® designation.

She ranked first in the biotechnology industry, and had the highest score overall, in The Wall Street Journal’s annual “Best on the Street” analysts survey in 2013, the last year the survey was conducted.

Andersen holds a bachelor’s degree in biochemistry from Rice University, where she graduated magna cum laude. She is also a member of Phi Beta Kappa. She has scientific research experience in academia at both Rice University and the University of Queensland in Australia. She also worked in the healthcare industry, both at genetic testing firm Integrated Genetics (now part of LabCorp) and as a research assistant at Lexicon Genetics (now Lexicon Pharmaceuticals).

* Morningstar Research Services LLC (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc

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