Myriad Genetics Announces Reorganization of European Operations and Sale of EndoPredict Business

Rhea-AI Summary

Myriad Genetics, Inc., a genetic testing and precision medicine company, announced the reorganization of its European operations and the sale of its EndoPredict business to Eurobio Scientific. The company will continue to serve key biopharma partners and patients outside the U.S. by licensing the right to sell Prolaris in vitro diagnostic kits to Eurobio. Myriad will also retain the rights to produce and sell EndoPredict in the U.S. as part of its Precise Oncology Solutions. The deal aims to accelerate profitable growth and support biopharma partners efficiently.

Positive

• Myriad Genetics aims to accelerate profitable growth by reorganizing its European operations and selling the EndoPredict business to Eurobio Scientific.

Negative

• The sale of the EndoPredict business may result in a loss of potential revenue from the European market for Myriad Genetics.

Insights

Financial Analyst

The divestiture of the EndoPredict business could indicate Myriad Genetics' strategic pivot towards optimizing capital allocation and focusing on core growth areas. By licensing rights to Eurobio, Myriad retains some degree of market presence internationally, but with reduced operational complexity and potentially lower costs. For Myriad, the transaction should result in a leaner structure with the potential to reallocate resources to higher-margin opportunities within the burgeoning field of precision medicine in the United States. However, investors should monitor the financials closely to gauge the actual cash inflow from the sale and its subsequent impact on the company's balance sheet. The long-term success of this strategy will depend on Myriad's ability to capitalize on the domestic market and forge strategic partnerships that can fill in any revenue gaps left by the sale.

Medical Research Analyst

The sale of the EndoPredict business suggests Myriad is refining its product focus to enhance its precision oncology portfolio. EndoPredict is a notable diagnostic tool for assessing the risk of recurrence in breast cancer patients and its sale may initially seem to dilute Myriad's diagnostic offerings. However, maintaining the licensing to produce and sell EndoPredict in the U.S. means Myriad still sees value in the assay within its comprehensive suite of tools. The critical question is whether the company can compensate for the European market loss with an enhanced focus on domestic operations, where competition in precision medicine is intense. R&D and marketing efficiency in the U.S. market will be of paramount importance in determining whether Myriad can sustain its growth trajectory while ceding ground in Europe.

SALT LAKE CITY, May 07, 2024 (GLOBE NEWSWIRE) -- Myriad Genetics, Inc., (NASDAQ: MYGN), a leader in genetic testing and precision medicine, today announced the reorganization of its European operations to better align company resources to its domestic opportunities while continuing to serve key biopharma partners and patients outside the United States.

As part of the reorganization, Myriad signed a definitive agreement to sell its EndoPredict^® business to Eurobio Scientific, a leading French group in in vitro medical diagnostics and life sciences. Myriad will also license Eurobio the right to sell Prolaris in vitro diagnostic kits outside the U.S.

Myriad will license the rights to continue to produce and sell EndoPredict, as a Laboratory Developed Test (LDT), in the U.S. as part of Precise Oncology Solutions, its comprehensive suite of precision medicine tools for breast, prostate, ovarian, pancreatic, endometrial, and colon cancer.

“The change in our international strategy is part of our continued effort to accelerate profitable growth while supporting our biopharma partners in the most efficient manner,” said Paul J. Diaz, president and CEO of Myriad Genetics. “By divesting the EndoPredict business to Eurobio, we believe EndoPredict and our European teammates will have more opportunities to grow given Eurobio’s strength and presence in the European market. This will also allow Myriad to be in a better position to grow our other global businesses more efficiently through strategic partnerships, including licensing and distribution agreements.”

The deal is subject to customary closing conditions, and Myriad expects the transaction to close in the second or third quarter of 2024.

About EndoPredict Breast Cancer Prognostic Test
EndoPredict is a prognostic test that predicts patient risk of breast cancer recurrence to help identify who can consider safely forgoing chemotherapy.

About Prolaris Prostate Cancer Prognostic Test
Prolaris is a molecular diagnostic test that provides personalized information about the aggressiveness of a patient's prostate cancer.

About Myriad Genetics 
Myriad Genetics is a leading genetic testing and precision medicine company dedicated to advancing health and well-being for all. Myriad develops and offers genetic tests that help assess the risk of developing disease or disease progression and guide treatment decisions across medical specialties where genetic insights can significantly improve patient care and lower healthcare costs. For more information, visit www.myriad.com.   

Safe Harbor Statement   
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including that the company will license Eurobio the right to sell Prolaris in vitro diagnostic kits outside the U.S., the company will license the rights to continue to produce and sell EndoPredict as a LDT in the U.S., and the company expects the transaction to close in the second or third quarter of 2024. These “forward-looking statements” are management’s expectations of future events as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions, and events to differ materially and adversely from those anticipated. Such risks and uncertainties include, but are not limited to, the risk that a condition to closing of the proposed transaction may not be satisfied; that either party may terminate the definitive agreement or that the closing of the proposed transaction may be delayed or not occur at all; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or consummation of the proposed transaction; and such other risks described in the company’s filings with the U.S. Securities and Exchange Commission, including the company’s Annual Report on Form 10-K filed on February 28, 2024, as well as any updates to those risk factors filed from time to time in the company’s Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Myriad is not under any obligation, and it expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law. 

Investor Contact 
Matt Scalo 
(801) 584-3532 
IR@myriad.com 

Media Contact 
Glenn Farrell 
(385) 318-3718 
PR@myriad.com  

FAQ

What did Myriad Genetics announce regarding its European operations and EndoPredict business?

Myriad Genetics announced the reorganization of its European operations and the sale of its EndoPredict business to Eurobio Scientific.

Who is the buyer of Myriad Genetics' EndoPredict business?

Eurobio Scientific has agreed to purchase Myriad Genetics' EndoPredict business.

What will Myriad Genetics continue to sell outside the U.S. to Eurobio?

Myriad Genetics will license the right to sell Prolaris in vitro diagnostic kits to Eurobio outside the U.S.

When is Myriad Genetics expecting the transaction to close?

Myriad Genetics expects the transaction to close in the second or third quarter of 2024.