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Fly News Breaks for February 9, 2017
MYGN
Feb 9, 2017 | 10:11 EDT
Myriad Genetics' Medicare contractor, Noridian, held an open meeting yesterday to discuss the recently published draft local coverage determinations calling for rescinding Vectra DA coverage as well as expanding Prolaris coverage for favorable intermediate risk patient, Piper Jaffray analyst William Quirk told investors earlier in a research note. Following the meeting, the analyst believes Vectra DA is incrementally more likely to lose Medicare coverage after the comment period. The loss of Vectra DA Medicare coverage would impact Myriad's annual revenue by $35M-$40M, Quirk estimated. Should the positive draft LCD expanding Prolaris coverage to favorable intermediate risk patients become final, the analyst estimates an additional $65M to the Prolaris opportunity. He kept a Neutral rating on Myriad. The stock is down 3% to $16.06 in morning trading.
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