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SALT LAKE CITY - A recent study published in the Journal of Clinical Psychopharmacology indicates that the use of the GeneSight Psychotropic Test by Myriad Genetics, Inc. (NASDAQ: MYGN), a molecular diagnostics company currently trading near its 52-week low but showing promising growth potential according to InvestingPro analysis, is associated with a decrease in psychiatric hospitalizations among patients with major depressive disorder. The research suggests that the genetic insights provided by the test can assist healthcare providers in personalizing medication selection, potentially reducing the trial-and-error approach commonly seen in psychiatric treatment.
The study, titled "Real-World Impact of Pharmacogenomic Testing on Medication Use and Healthcare Resource Utilization in Patients with Major Depressive Disorder," analyzed data from over half a million de-identified patients who received the GeneSight test. Findings showed an almost 40% relative reduction in the proportion of patients who filled prescriptions with significant gene-drug interactions post-testing. This development comes as Myriad Genetics maintains a strong gross profit margin of nearly 70% and achieved revenue growth of 11.2% in the last twelve months.
Furthermore, a 39% relative reduction in psychiatric-related hospitalizations and a 29% reduction in overall hospitalizations were observed in the studied group. Patients switched to medications with no or moderate gene-drug interactions experienced a 44% relative reduction in psychiatric hospitalizations and a 34% relative reduction in hospitalizations for any reason.
Dr. Crystal Nelson, a psychiatrist from Newnan, GA, commented on the practical benefits of the GeneSight test, noting that it often provides patients with a renewed sense of hope by identifying genetic factors that may have contributed to previous medication failures.
The GeneSight Psychotropic Test analyzes how a patient’s genes may affect their metabolism and response to over 60 medications prescribed for depression, anxiety, ADHD, and other psychiatric conditions. It is designed to supplement the information healthcare providers consider during a comprehensive medical assessment.
Myriad Genetics emphasizes the potential of pharmacogenomic testing to improve treatment decisions and reduce healthcare resource utilization. However, the study did not compare GeneSight test recipients with a control group not undergoing the test, leaving causality between the testing and the observed reductions in hospitalizations open for further investigation.
The study’s findings add to the ongoing discussion on the role of genetic testing in personalized medicine, particularly in the field of psychiatry where treatment responses can be highly variable. Myriad Genetics continues to advocate for the benefits of their GeneSight test as part of their mission to advance health and well-being through molecular diagnostics and precision medicine.
This article is based on a press release statement from Myriad Genetics, Inc. Investors looking for deeper insights into MYGN’s financial health and growth prospects can access comprehensive analysis through InvestingPro, which features additional ProTips and detailed metrics. The company is scheduled to report its next earnings on May 1, 2025, with analysts projecting a return to profitability this year.
In other recent news, Myriad Genetics reported fourth-quarter revenues of $211 million, which aligned with its preannouncement range but fell short of the Street’s expectation of $213 million. Despite this, the company exceeded some financial metrics, with adjusted gross margins of 72.0% and adjusted EBITDA of $11 million, surpassing anticipated figures. Myriad Genetics also confirmed its 2025 guidance, projecting revenues between $840-860 million, which is below the Street forecast. The company anticipates gross margins of 69.5-70.5% and adjusted EBITDA of $25-35 million for 2025.
Analyst actions have been mixed, with Piper Sandler upgrading the stock to Overweight, setting a new price target of $12.50, citing potential under new leadership. Conversely, JPMorgan reduced its price target to $12.00, maintaining an Underweight rating due to concerns about volume growth deceleration and EMR workflow disruptions. Morgan Stanley also cut its target to $16.00, maintaining an Equalweight rating, while Scotiabank lowered its target to $20.00 but kept an Outperform rating, noting resilience in the Oncology and Women’s Health divisions. Additionally, Myriad Genetics announced leadership changes, with Sam Raha stepping in as CEO and Brian Donnelly appointed as the new Chief Commercial Officer, effective May 1, 2025.
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