Piper says Myriad appears to be trading down on GeneSight coverage change

Piper Sandler thinks Myriad Genetics (MYGN), which has seen its shares fall nearly 22% on Friday morning, is trading down on a coverage decision on GeneSight by UnitedHealth (UNH), which will take effect as of the start of the new year. GeneSight represents 18% of revenue and reimbursement has been “a concern of some investors,” notes the firm, which is waiting on management’s commentary and expects to have further commentary following a press release or conversation with the company. However, considering UnitedHealth would represent a fraction of the market, the firm thinks the Street is reacting on potential further non-coverage, adds the analyst, who has a Neutral rating on Myriad shares.