Myriad Genetics, Inc. (MYGN) Message Board

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Biotech / Medical : Myriad Genetics, Inc. (MYGN)

MYGN 6.540

-0.4%

12:59 PM EST

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From: mopgcw	11/2/2012 11:13:58 AM
	of 2355

CS: CMS places BRACAnalysis on CLFS. In-line with our thesis, the Center for Medicare & Medicaid Services (CMS) declared that Tier 1 and Tier 2 molecular pathology codes, including Myriad's BRACAnalysis and Colaris, will be placed on the morefavorable Clinical Lab Fee Schedule (CLFS). Recall the risk was these tests could have ended up on the Physician Fee Schedule (PFS), which typically has lower prices, more frequent pricing reviews and a 20% patient co-pay. While final pricing decisions have not been announced, avoiding placement of the tests on the PFS does remove a major overhang on MYGN's shares. ?? More clarity expected in 2013. Myriad will now need to work with Noridian, their regional Medicare Reimbursement Contractor, to help determine the new reimbursement rates for both BRACAnalysis and Colaris. The new rates will go into effect on Jan 1, 2013 on a preliminary basis but will not be publicly announced until April and will not be finalized until September. These lingering headwinds outweigh our expectation for continued strong organic growth for BRACAnalysis and help keep us Neutral rated on Myriad's stock. ?? Update on gene patent case also expected soon. The other significant headline risk for Myriad relates to their ongoing gene patient case against the American Civil Liberties Union and several other plaintiffs. The plaintiffs have appealed a recent unfavorable ruling up to the Supreme Court of the United States. We understand the court will conference around Nov 30 to decide whether or not they will hear this case. An announcement will be made during the first week of Dec and, if the court agrees to hear the case, the hearing will take place in the Spring and we will have a final decision expected by June 2013.

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