Myriad Genetics Inc. (MYGN) entered into a cancer research collaboration with Janssen Research & Development, LLC. Per the agreement, the latter will use Myriad's BRACAnalysis test in its Phase 3 clinical trial of Yondelis (trabectedin) in the treatment of advanced-relapsed epithelial ovarian, primary peritoneal or fallopian tube cancers (NCT01846611). However, financial terms of the deal were not disclosed.
This collaboration validates Myriad’s strategy to establish its gold standard diagnostic test BRACAnalysis as the leading companion diagnostic. The company is currently working on creating alliances with big pharmaceutical companies.
Last month, Myriad entered into research collaboration with biotechnology company, BioMarin Pharmaceutical Inc. (BMRN). This marks the second such arrangement forged between the two partners. The recent agreement allows BioMarin to use Myriad's novel Homologous Recombination Deficiency test, popularly known as HRD. In Oct 2013, Myriad had forged its first agreement with BioMarin to use its BRACAnalysis test in connection with the latter’s Phase III study of BMN-673 for breast cancer.
Earlier in September, Myriad had inked an expanded, nonexclusive worldwide collaboration agreement with AstraZeneca (AZN) to offer companion diagnostics for the latter’s pivotal Phase 3 clinical development program for the oncology candidate olaparib. This deal is also an extension of an existing tie-up between Myriad and AstraZeneca through which Myriad provided BRACAnalysis tests to assist the latter in its Phase 2 development program for olaparib in breast and ovarian cancer.
Myriad has joined hands with several pharmaceutical majors to assert itself as a strong player in the companion diagnostic market. Per management, these alliances with major pharmaceutical players collectively reflect a market potential of over $1 billion for Myriad in the field of diagnostics and companion diagnostics. We are upbeat about the company’s growth prospects in the companion diagnostics space and believe that these developments should augur well for the long-term development of Myriad.
Currently, Myriad carries a Zacks Rank #2 (Buy).Investors interested in the industry may also consider stocks like Actelion Ltd. (ALIOF) that sports a Zacks Rank #1 (Strong Buy).
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