Myriad's Prolaris got positive results

Myriad Genetics (MYGN - Analyst Report) presented data on its 46-gene cell cycle progression (CCP) molecular diagnostic test – Prolaris, at the American Society of Clinical Oncology (ASCO) annual meeting in Chicago.

It was observed that the test is significant in determining the aggressiveness of prostate cancer during biopsy. Consequently, it provides guidance to physicians and patients regarding the appropriate course of treatment.

The Prolaris CCP scores for 352 patients were analyzed whose prostate cancer was diagnosed by needle biopsy. The study revealed that the Prolaris CCP score could better predict the probability of cancer death compared to the accepted clinical variables including Gleason score or baseline PSA.

Prolaris assesses the form of prostate cancer to determine its nature – slow growing or a more aggressive form. The test can also estimate the risk of prostate cancer recurrence in patients who have undergone prostatectomy surgery. As per the estimates of Centers for Disease Control and Prevention, in the US, 223,000 men were diagnosed with prostate cancer in 2007. The huge patient population will benefit from the information provided by the test.

Currently, Myriad derives almost 89% of its total revenue from Bracanalysis. However, the company has been undertaking several steps to diversify its revenue stream. Last month, Myriad licensed proprietary technology for the early detection of cancer from California based Chronix Biomedical.

Under the agreement, Myriad will gain rights to commercialize the test for the early detection of breast, colon and prostate cancer in North America, South America, and Europe. Against these, the company is liable to pay upfront fees, milestone payments, and royalty payments based on the achievement of certain benchmarks.

Although the company has several other products in its portfolio, they are yet to make any significant contribution to the top line. We believe the recent revelation about the significance of Prolaris should boost its revenues going ahead.