The 2 Major Catalysts Behind Myriad Genetics, Inc.'s 26% Gain in August

The 2 Major Catalysts Behind Myriad Genetics, Inc.'s 26% Gain in August

Shares of Myriad Genetics (NASDAQ: MYGN), a leading developer of molecular diagnostic tests, surged by 26% during the month of August, according to data from S&P Global Market Intelligence. Why the sudden surge? The bulk of the gains look traceable to the company's fourth-quarter and full-year earnings release on Aug. 8, as well as positive insurance coverage decisions made on a key diagnostic product mid-month.

The rally really began for Myriad Genetics following the release of its fourth-quarter report. During Q4, Myriad wound up generating $200.5 million in sales, an 8% year-over-year improvement, largely helped by growth in its GeneSight test. Despite the jump in sales, its adjusted profit fell by 17% to $0.30 per share. Nevertheless, Myriad wound up topping Wall Street's sales and profit projections for the fourth quarter. This beat, coupled with growth from newer diagnostic products, which have helped offset competitive weaknesses in its hereditary cancer testing franchise (e.g., BRCA gene tests), clearly have investors upbeat about Myriad's prospects.

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Source: Fool.com