Data Portfolio
Text Analysis (NLP): Myriad Genetics
Data patterns and recommendations based on annual reports and Lexis Advance newspaper articles.
Findings and Recommendations
The analysis in this report focuses on two text sources (newspaper articles and Myriad’s annual reports), and financial data contained in Myriad’s annual reports.
Findings:
Revenue is forecasted to continue to grow.
With the Supreme Court Case settled, Myriad receives less press however the sentiment behind the press Myriad receives is often positive.
Myriad’s acquisitions have resulted in diversification of their product line, improved public image, and Myriad will remain a strong industry contender.
Recommendations:
Continue to diversify through acquisitions and product launches
Build and strengthen relations with healthcare and healthcare insurance providers. Due to the cost of individual tests, it is imperative that providers support Myriad.
Revenue, Keywords, and Acquisitions
Key terms focused on in the word analysis of this report are gene, cancer, and patent. Each term has been present in discussions regarding Myriad.
Myriad has been aggressive in acquisitions. In the past three years, Myriad has acquired as many companies, strengthening their position in breast cancer, reproductive, and other genetic testing. The 2011 acquisition of Rules Based Medicine eased entry into the autoimmune market. Without the Supreme Court case less Myriad has been less visible in newspapers; 2015 was an especially quiet year. Articles mentioning patents were prevalent again in 2018, although it appears the press was more positive than negative. 2018 saw an increase of discussion regarding Myriad and the 3 key terms identified for this report suggesting Myriad is gaining attention for discoveries and products.
Products
myRisk is the product that generates the most revenue however Genesight, Prolaris, and EndoPredict (all launches made possible through acquisitions) have all seen rapid growth.
myRisk revenue has declined by $100 million from 2016 to 2018. Genesight has shown most growth and is expected to continue. Genesight will represent a larger share of Myriad’s product line, a near guarantee with UnitedHealthcare’s recent announcement that their insurance will cover the mental illness screening. An increase in mental illness screening acceptance will drastically increase profits from Genesight.
Stock Performance
Direct results from Myriad’s acquisitions have affected the value of Myriad’s stock. UnitedHealthcare’s agreement to cover Genesight mental screenings resulted in an increase of more than 50%.
Recently, Myriad stock gained more than 50% in value in a single day, an increase that carried into the next day. UnitedHealthcare’s agreement to cover Genesight is directly responsible. Significant increases in 2018 can also be attributed to Myriad’s acquisitions. The largest decrease in stock value occurred in November 2018, again directly attributed to products gained through acquisitions.
Word Analysis - Sentiment
Positive vs. Negative sentiment for keywords. Throughout the US Supreme Court case, Myriad was discussed frequently with keywords cancer, gene, and patent. Myriad’s presence in media has declined however sentiment is more often positive in 2018.
Sentiment has grown to be more positive in recent years for the use of keywords (cancer, gene, patent) used in newspaper articles. Sentiment and use have remained consistent throughout Myriad’s annual reports since 2009 with the only key term showing less frequent use as being “gene”. Other significant words have more usage with a positive sentiment than negative. (Sentiment analysis performed using Vader Sentiment Analyzer.)
Recommendations and Further Analysis
It is clear through analysis that acquisitions integral to Myriad’s success. Because molecular diagnostics and genetic testing are growing markets, it is imperative to keep at the forefront of biotech and medical advances. While revenue is forecasted to continue to grow, I believe Myriad’s strongest advantage has been its successful entry into new market areas (ex. mental illness screening). Changing this strategy would be detrimental to Myriad’s success.
UnitedHealthcare’s agreement to cover Genesight testing is excellent news for Myriad. Continuing to grow and foster business relations and support of the expanding product line will ensure success in sustaining growth for Myriad and its subsidiaries.
The structure of the genetic testing market has changed since Myriad’s initial appearance. The market is saturated with new tests. Fortunately, Myriad has a successful history of proven products. Recent and future changes affecting governmental allowances for genetic testing and how it is made available should be investigated. Competitors are engaged in direct-to-customer (DTC) sales. The DTC market is not yet something Myriad has ventured towards, but it is an opportunity that should be researched especially considering the growing acceptance and confidence in genetic testing.