Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Myriad Genetics (NASDAQ:MYGN), a molecular diagnostics company, popped as much as 13% after the company issued a statement with regard to ongoing Medicare reimbursement rates for its BRACAnalysis gene test, and following an analyst upgrade.
So what: According to CNBC, this all began when an erroneous report was released late in the day yesterday from the Centers for Medicare and Medicaid Services. In that report, the CMS noted that reimbursements for Myriad's BRACAnalysis test -- which tests for the gene mutations BRCA1 and BRCA2 that carry with them a higher chance of a patient developing breast or ovarian cancer -- would fall by 48% for the remainder of the year, which sent shares tanking. But we found out today from Myriad that this report was issued in error and that its BRACAnalysis reimbursement rates will remain unchanged throughout the remainder of the year. With that in mind, research firm Ladenburg Thalmann upgraded its rating on Myriad to "buy" from "neutral."
Now what: Call it uncanny timing, but I happen to have added Myriad Genetics to my "3 Stocks Near 52-Week Lows Worth Buying" series just today. Myriad has a lot to offer investors who believe that the personalization of health care vis-a-vis cancer treatments is going to drive the next wave of growth in this sector. Myriad has a wide range of products beyond just its BRACAnalysis genetic test, which is now facing some tougher competition, has $372 million in cash with no debt, and looks to be in a great position to benefit from higher patient usage under the implementation of the Patient Protection and Affordable Care Act. You could certainly say that I'd suggest you give it a deeper dive.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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