UnitedHealth update ‘not the end’ for Myriad’s GeneSight, says Raymond James
The Fly

UnitedHealth update ‘not the end’ for Myriad’s GeneSight, says Raymond James

UnitedHealth (UNH) on Friday disclosed that it would stop covering multi-panel pharmacogenetic tests, including Myriad’s (MYGN) GeneSight, effective January 1, 2025, in a number of plans, which Raymond James tells investors in a research note is a major blow given the size of UnitedHealth, which covers a mid-teens portion of the commercial market and raises additional questions on the ability of GeneSight to drive growth more broadly. The firm thinks the market is overshooting and would be buyers, thinks the Myriad business ex-GeneSight is a mid- to high-single digit grower and that GeneSight can remain additive over the longer term, even if it faces disruption in 2025. The firm made no change to its Outperform rating.

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