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Benzinga
175 days

Myriad Genetics Faces Cost Restructuring As UnitedHealthcare Ends GeneSight Coverage, Appoints New CEO

1. UnitedHealthcare ends coverage for MYGN GeneSight test effective H1 2025. Coverage loss may reduce revenue. 2. 2024 GeneSight testing generated $45M, with commercial plans providing $40M and Medicaid $5M. This revenue loss poses a notable risk. 3. Q4 adjusted EPS dropped to 3 cents and fourth-quarter sales slightly missed consensus. Earnings miss raises concerns. 4. MYGN reaffirms 2025 EPS guidance and appoints a new CEO. Leadership change adds uncertainty to long‐term strategy.

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FAQ

Why Bearish?

The termination of a $45M revenue stream from UnitedHealthcare could pressure MYGN's earnings. Similar coverage losses in other biotech cases led to significant stock price declines.

How important is it?

The loss of UnitedHealthcare coverage for a key test, combined with earnings miss and leadership changes, is significant for MYGN's future prospects.

Why Long Term?

The coverage change will affect future revenue starting in 2025, and recovery efforts may take time to materialize, impacting long-term valuation.

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