Myriad Genetics, Inc. MYGN recently entered into a research partnership with National Cancer Center Hospital East ("NCCHE") in Japan to evaluate the prognostic and predictive value of molecular residual disease (MRD) testing. Myriad Genetics' Precise MRD test will be used to investigate the widespread application of MRD testing across numerous cancer types.
With its unique ability to monitor hundreds to thousands of tumor-specific variants, MYGN's Precise MRD test uses whole genome sequencing (WGS) to detect tumor-informed variants. This allows for remarkable sensitivity and quantification of circulating tumor DNA (ctDNA) in cancer patients' blood.
More on Collaboration
The SCRUM-MONSTAR-SCREEN-3 research will use Myriad Genetics' ultra-sensitive MRD test, Precise MRD, to track ctDNA over time in patients with a variety of solid tumor and hematological cancers.
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This project will explore how multi-omic profiling can be used to establish more tailored therapy and therapeutic methods across three study cohorts. Two of the three cohorts, which include about 1,200 patients from more than 20 cancer types, will have MRD monitored using Precise MRD. The purpose of SCRUM-MONSTAR-SCREEN-3 is to create high-quality, prospective clinical evidence demonstrating that MRD testing may be widely utilized across cancer types and to patients with varying disease severity or stage.
Strategic Implications
The collaboration unleashes new opportunities to both companies as Myriad Genetics' MRD test is uniquely capable of detecting ctDNA at the lowest levels of detection, which is essential for a pan-cancer investigation. This study has potential to significantly expand the scope of WGS-based MRD initiatives and promote the development of MRD-guided therapy methods for a wide range of malignancies.
Per management, the company is excited to be working with the excellent NCCHE team on the SCRUM-MONSTAR-SCREEN-3 project. NCCHE researchers have been at the forefront of MRD research, directing some of the most important and impactful trials as part of SCRUM-MONSTAR-SCREEN, such as CIRCULATE-Japan, which includes GALAXY, VEGA, and ALTAIR in colorectal cancer patients. MYGN considers Precise MRD to be very sensitive for use across all cancer types and look forward to this study confirming its relevance in cancer care.
Industry Prospects
Per a research report, the global MRD testing market was valued at $1.89 million in 2022 and is expected to witness a CAGR of 11.45% up to 2030.
Factors such as the rising prevalence of cancer, increasing consumer awareness for therapy and higher funding for research with a growing disposable income in emerging economies augment growth of the market.
Recent Developments
In December 2023, Myriad Genetics launched Myriad Collaborative Research Registry (MCRR), a comprehensive pan-cancer research platform to advance patient care. Previously known as Precise Treatment Registry, MCRR includes new data across germline and tumor testing results from the company’s cancer products on more than one million patients.
Earlier in September 2023, Myriad Genetics entered into a research collaboration with Memorial Sloan Kettering Cancer Center (MSK). The partnership will study the use of testing in breast cancer by using MYGN’s MRD testing platform — a tumor-informed high-definition assay that uses whole-genome sequencing to achieve high sensitivity and specificity for ctDNA.
Price Performance
In the past six months, Myriad Genetics’ shares have increased 16.1% compared with the industry’s decline of 1.6%.
Zacks Rank and Key Picks
Myriad Genetics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Stryker Corporation SYK, Cencora, Inc. COR and Cardinal Health CAH.
Stryker, carrying a Zacks Rank #2 (Buy), reported fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 5.1%.
Cencora, carrying a Zacks Rank #2, reported first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average beat being 6.7%.
Cardinal Health, carrying a Zacks Rank #1 (Strong Buy), reported second-quarter fiscal 2024 adjusted EPS of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion improved 11.6% on a year-over-year basis and also topped the Zacks Consensus Estimate by 1.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.
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