Myriad Genetics’ GeneSight: A Major Growth Driver in 2018?
GeneSight’s market opportunity
In the first quarter of fiscal 2018, Myriad Genetics’ (MYGN) GeneSight reported revenues of $28.8 million, a year-over-year (or YoY) growth of 54% and a sequential growth of 12%. The product also witnessed a robust rise in sales volumes due to ~12,000 physicians ordering GeneSight despite the impact of seasonal trends.
GeneSight is a DNA genotyping test that’s targeting a market opportunity of ~$10 billion. The test is used to determine optimal psychotropic therapy for neuroscience patients. Clinical studies have shown that personalized treatment based on GeneSight results is twice as effective in eliciting a response from treated patients compared to the standard care.
Myriad Genetics has been witnessing both new sales orders as well as repeat orders for GeneSight. The company is currently focusing on psychiatrists and less on primary care. With its expansion in reimbursement and coverage, the company plans to penetrate the preventive care segment. This is expected to almost double the addressable market opportunity for GeneSight.
Myriad Genetics makes up 0.29% of the iShares S&P Small-Cap 600 Value ETF (IJS).
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The above diagram shows that a major portion of the total sales volumes in fiscal 2017 was attributed to GeneSight.
Supporting clinical data
On November 2, 2017, Myriad Genetics reported positive results from the largest ever pharmacogenomics depression trial, comprised of 1,200 patients suffering with major depressive disorder. Data from the trial highlighted the efficacy of the GeneSight psychotropic test in determining the most optimal treatment paradigm for these patients.
The results were based on the Hamilton Depression Rating Scale 17 (or HAMD-17) and compared patients receiving GeneSight guided therapy to those receiving treatment in the conventional manner. Myriad Genetics assessed the impact of GeneSight using remission, response, and symptom reduction. GeneSight reported statistically significant improvement in remission and response endpoints, which are considered to be the gold standard of clinical outcomes. The company expects improved payer coverage and increasing adoption of the product in fiscal 2018.
In the next part, we’ll look at GeneSight’s growth prospects.