Stock Analysis & Valuation Myriad Genetics, Inc. (MYD.DE)

• Previous Close: €26.72
• Sector Valuation Confidence Level: High

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	0.40	-99
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Myriad Genetics, Inc. (MYD.DE) is a pioneering genetic testing and precision medicine company headquartered in Salt Lake City, Utah. Specializing in molecular diagnostic tests, Myriad Genetics serves the oncology, women's health, and mental health sectors with innovative solutions. The company's flagship products include the MyRisk Hereditary Cancer Test, BRACAnalysis CDx, and MyChoice CDx, which help assess hereditary cancer risks and guide personalized treatment plans. Additionally, Myriad offers Prolaris for prostate cancer prognosis, EndoPredict for breast cancer, and GeneSight for psychotropic medication selection, positioning itself as a leader in genetic diagnostics. With strategic collaborations with Illumina and Intermountain Precision Genomics, Myriad enhances its capabilities in germline and somatic tumor testing. Despite operating in a competitive healthcare landscape, Myriad Genetics remains at the forefront of precision medicine, leveraging cutting-edge genetic research to improve patient outcomes.

Investment Summary

Myriad Genetics presents a high-risk, high-reward investment opportunity in the rapidly growing genetic testing market. The company's revenue of €678.4 million in FY 2022 is offset by a net loss of €112 million, reflecting ongoing R&D and commercialization costs. With a market cap of €2.15 billion and a beta of 1.958, Myriad is highly volatile, making it suitable for investors with a strong risk appetite. The lack of dividends and negative operating cash flow (-€106.3 million) raise concerns, but its strong product pipeline and strategic partnerships could drive future growth. Investors should weigh the potential of precision medicine against the company's current financial instability.

Competitive Analysis

Myriad Genetics competes in the genetic diagnostics market with a focus on oncology and women's health. Its competitive advantage lies in its proprietary tests like MyRisk and BRACAnalysis CDx, which have established clinical utility. However, the company faces stiff competition from larger players like Illumina and Quest Diagnostics, which have broader portfolios and stronger financials. Myriad's collaboration with Illumina provides access to next-generation sequencing technology, enhancing its precision oncology offerings. Yet, its reliance on a few key products exposes it to revenue concentration risks. The company’s negative earnings and cash flow position it as a speculative play compared to more diversified competitors. Its ability to innovate and expand into new genetic testing applications will be critical in maintaining its market position.

Major Competitors

• Illumina, Inc. (ILMN): Illumina dominates the genomic sequencing market with its high-throughput platforms. While Myriad collaborates with Illumina, it lacks the same scale in sequencing technology. Illumina’s broader product range and stronger financials make it a more stable investment, but Myriad’s specialized diagnostic tests offer niche advantages.
• Quest Diagnostics (DGX): Quest Diagnostics is a leader in diagnostic testing with a vast network of labs. Unlike Myriad, Quest offers a wide array of routine and esoteric tests, reducing dependency on any single product. However, Myriad’s focus on genetic testing gives it deeper expertise in precision medicine applications.
• Exact Sciences Corporation (EXAS): Exact Sciences specializes in cancer detection, notably with its Cologuard test for colorectal cancer. While Myriad has a broader hereditary cancer portfolio, Exact Sciences’ strong commercial execution and growing market share in oncology diagnostics pose a competitive threat.
• Novartis AG (NVS): Novartis has a strong presence in precision medicine through its pharmaceuticals and diagnostics divisions. While not a direct competitor in genetic testing, Novartis’s resources and R&D capabilities in targeted therapies could challenge Myriad’s market position in the long term.