UnitedHealth (UNH) on Friday disclosed that it would stop covering multi-panel pharmacogenetic tests, including Myriad’s (MYGN) GeneSight, effective January 1, 2025, in a number of plans, which Raymond James tells investors in a research note is a major blow given the size of UnitedHealth, which covers a mid-teens portion of the commercial market and raises additional questions on the ability of GeneSight to drive growth more broadly. The firm thinks the market is overshooting and would be buyers, thinks the Myriad business ex-GeneSight is a mid- to high-single digit grower and that GeneSight can remain additive over the longer term, even if it faces disruption in 2025. The firm made no change to its Outperform rating.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on MYGN:
- Piper says Myriad appears to be trading down on GeneSight coverage change
- Myriad weakness due to UnitedHealth coverage update, says Stephens
- MYGN Upcoming Earnings Report: What to Expect?
- Myriad Genetics announces strategic partnership with jscreen
- Myriad Genetics, Flatiron partner to make genetic testing more accessible