Shares of Myriad Genetics (MYGN 0.47%), a genetic-testing and precision-medicine biotech company, were down more than 24% this week as of Thursday, according to data from S&P Global Intelligence. The stock closed last week at $20.86, then opened on Monday at $20.43.
The stock hit its 52-week low on Thursday afternoon when it sunk to $15.38. Its 52-week high is $31.91. The stock is down more than 42% so far this year.
The company released its third-quarter earnings on Tuesday, and the numbers weren't impressive. The company reported revenue of $156.4 million, down 6.5% year over year, and a loss in net income of $35.1 million, compared to a gain of $24.6 million in the same period a year ago.
Earnings per share (EPS) came in at a loss of $0.43, compared to EPS of $0.33 in the third quarter of 2021. The company cited currency translations, change of estimates, and a non-recurring milestone payment for the declining numbers.
The company also lowered its annual guidance, dropping revenue estimates of $670 million to $700 million to $668 million to $672 million. It also lowered annual EPS guidance to a loss of $1.35 to $1.30, compared to its previous annual EPS guidance for a loss of between $1.10 and $1.00.
The other bit of news that may have concerned investors was the company's announcement on Monday of its $67.5 million purchase of Gateway Genomics, a personal genomics company and developer of consumer-genetic tests. In addition to the $67.5 million, Gateway can earn $32.5 million for meeting certain financial targets over the next two years. Myriad said the purchase will be neutral to the company's earnings and operating cash flows next year but should be accretive to Myriad by 2024.
The biotech stock may bounce back a bit as bargain-seeking investors jump in once they see it has hit its 52-week low. Plus, some of the news from the third-quarter report wasn't bad.
Testing volumes, which were down during the pandemic, were up in the third quarter, led by the company's pharmacogenomics testing for mental health, which rose 37% year over year to revenue of $33 million. The company's GeneSight test covers 64 medications prescribed for depression, anxiety, attention deficit hyperactivity disorder, and other psychiatric conditions so physicians can understand how, due to genetic alterations, patients respond to antidepressants or other drugs.