Myriad Genetics Provides no 2021 Outlook After Poor Performance, FVE Remains the Same

Due to seasonally lower summer sales as well as the rise of the delta variant, Myriad Genetics saw third-quarter revenue fall roughly 12% from the prior-year period, which was consistent with our expectations. We are leaving our $21.50 fair value estimate intact. Shares remain overvalued, from our perspective. Women’s health saw a 12% decrease sequentially while oncology saw a decrease of 2% sequentially. Amidst the impacts of COVID-19 and seasonality, GeneSight, under Myriad’s mental health unit, still reported strong numbers with 7% revenue growth sequentially driven by volume and stable pricing. Although Myriad has launched new innovations such as RiskScore and paired offerings with MyRisk in oncology, we still deem Myriad a no-moat company based on continued pricing pressure in hereditary cancer and overall uncertainty around long-term profitability, given Myriad’s product offering and the genetic testing environment.