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Fly News Breaks for December 27, 2016
MYGN
Dec 27, 2016 | 06:02 EDT
Barclays analyst Jack Meehan views the decisions last Thursday from the Centers for Medicare & Medicaid Services as a "mixed bag" for Myriad Genetics. The most surprising was a non-coverage decision for Vectra DA that was based on a single study published in August, Meehan tells investors in a research note. He expects Myriad, which refuted the study, to enter discussions with the agency in an attempt to reverse the decision. CMS' decision for Vectra DA is "very surprising" since Medicare has covered the test since 2014 and the test has 20 peer-reviewed studies supporting its clinical validity and utility, the analyst contends. He believes Medicare coverage for Vectra DA will remain an overhang on the shares. On a positive note, CMS did recommend expanding coverage for Prolaris to favorable intermediate risk prostate cancer patients, a move that adds approximately $100M of addressable reimbursed opportunity, Meehan writes. He keeps an Equal Weight rating on Myriad Genetics.
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