Summary
Myriad Genetics' (NASDAQ:MYGN) lowered guidance for 4Q and full year 2009. According to the company, the shortfall is a result of the recession, rising unemployment and loss of associated insurance coverage. Potential patients for Myriad Genetics tests are delaying and/or canceling physician appointments.
Analysis
Myriad Genetics (NASDAQ:MYGN) expects both 4Q and full year 2009 sales to below original estimates. The company said that it will report 4Q molecular diagnostic sales of $86 million versus a forecast of $91.6 million. For the full year, molecular diagnostic sales are expected to come in at $326 million, down from earlier estimates of $330 million and analyst projections of $336.8 million. Still, these molecular diagnostic testing revenues would be 46% greater compared with those in 2008.
Like so many other companies in both the clinical diagnostics and life science market segments, the recession is being blamed for the shortfall. As the recession has led to month increases in the unemployment rate, those not working often lose health insurance coverage. This results in patients delaying or canceling doctor visits. According to a recent report, for every 1% increase in unemployment, approximately 2.5 million Americans lose their healthcare coverage.
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