Vectra DA performance in first quarter of fiscal 2018
In the first quarter of fiscal 2018, Myriad Genetics’ (MYGN) Vectra DA test reported revenues close to $16 million, which included carryover of Medicare revenues close to $4.0 million from the previous quarter, attributable to changes introduced in the accrual-based accounting system in line with ASC 606 guidelines. If this one-time revenue impact is not considered, Vectra DA reported a 5% year-over-year (or YoY) rise in revenues in the first quarter of fiscal 2018.
Vectra DA is a protein quantification test used to measure disease activity in rheumatoid arthritis (or RA) patients. This product has demonstrated more than three times the capacity to predict disease activity in RA patients as compared to other standard of care measures. Vectra DA is currently targeting a global addressable market worth $3.0 billion on a yearly basis. Notably, Myriad Genetics makes up about 0.39% of the iShares Exponential Technologies ETF’s (XT) total portfolio holdings.
On November 6, 2017, Myriad Genetics entered an agreement for coverage with evidence development (or CED) study with CareFirst BlueCross BlueShield for the VectraDA test in RA patients. CareFirst will also provide coverage for Vectra DA to patients enrolled in this demonstration study. The success of this study is expected to further boost the probability of Vectra DA in securing reimbursement from other commercial payers in the US. Currently, Myriad Genetics is involved in demonstration studies related to Vectra DA for five of the leading 20 payers in the US.
In the next article, we’ll discuss clinical data supporting Vectra DA in greater detail.