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Myriad Genetics: Top Performer in the Biotechnology Subgroup

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Biotechnology subgroup outsmarts pharmaceutical subgroup

The biotechnology and pharmaceutical subgroups are the iShares Nasdaq Biotechnology ETF’s (IBB) two major subgroups. Together, they account for ~97.5% of IBB’s portfolio. IBB has 75 stocks in its biotechnology portfolio. In contrast, the pharmaceutical subgroup consists of 61 stocks.

On November 4, 2015, the biotechnology subgroup outperformed the pharmaceutical subgroup. The biotechnology subgroup gave a return of 0.65%. The pharmaceutical subgroup fell by 0.35%. The biotechnology subgroup includes stocks like Amgen (AMGN) and Intercept Pharmaceuticals (ICPT). The pharmaceutical subgroup includes stocks like Acadia Pharmaceuticals (ACAD), Dyax (DYAX), and others.

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The above graph shows the performance of the biotechnology subgroup and the pharmaceutical subgroup compared to the SPDR S&P 500 ETF (SPY). From October 26 to date, the pharmaceutical subgroup marginally outperformed the biotechnology subgroup and SPY with a return of 10.3%. The biotechnology subgroup returned 10.1%. SPY returned 1.4%.

Myriad Genetics reports fiscal 1Q16 results

Myriad Genetics (MYGN) rose 9% on November 4, 2015. It reported its fiscal 1Q16 results. Myriad Genetics reported revenue of $183.5 million compared to $168.8 million for the same period last year. It reported a diluted EPS (earnings per share) of $0.37. It reported a net income of $26.6 million compared to net income of $16 million for the same period last year. During the quarter, Myriad Genetics repurchased ~1.1 million common shares worth ~$38 million.

Myriad Genetics provided the guidance for full-year fiscal 2016 revenue to be $750–$770 million. It provided the guidance for the GAAP (generally accepted accounting principles) diluted EPS in the range of $1.45–$1.50.

Myriad Genetics closed at $46.16. It was trading well above the 20-day, 50-day, and 100-day moving averages. With its current price, the stock is trading at a PBV (price-to-book value) ratio of 4.94x. Myriad Genetics has a weight of ~0.45% in IBB’s portfolio.

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