Myriad Genetics to Refocus on Molecular Diagnostics and Personalized Medicine

Myriad Genetics (NASDAQ:MYGN) is ending its venture into drug development. Its Alzheimer’s drug, Flurizan, did not show benefits in phase III, barely a surprise following unconvincing Phase II trials. Fortunately for Myriad Genetics, it has already recouped the $ 68 million invested in phase III thanks to an agreement selaed last May where Lundbeck paid $ 100 million for Flurizan European rights.
Myriad’s lead compound is now Azixa (MPC-6827). The apoptosis-inducing compound is in Phase II testing to treat glioblastoma multiforme (GBM), melanoma with brain metastases and non-small cell lung cancer (NSCLC) with brain metastases. Myriad received exclusive rights to Azixa from EpiCept (NASDAQ:EPCT),
Discontinuation of Flurizan will allow Myriad Genetics to show a profit of $ 0.35 per share on 2009 sales of $ 315 million according to analyst consensus. On June 30, MYGN was down 5% at $45.52 a share and market cap was $ 2.03 billion.
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However, as “personalized medicine” becomes increasingly prevalent, companies like Myriad Genetics are likely to be winners, enjoying rapid growth and high profitability.