Investment Thesis

Given the present macroeconomic disturbances, one would be inclined to seek safety in defensive healthcare companies, but I don’t think Myriad Genetics, Inc. (NASDAQ:MYGN) is an ideal choice. Indeed, there are a number of problems that have hampered this company’s ability to drive meaningful growth, which has made it very difficult for investors to see much upside from owning the stock. Based on the information available to me, I believe that the company will ultimately struggle to realize its full potential, but its small size and strong financial profile may make it an attractive acquisition target for a larger player in the future. Before I get too far ahead of myself, let me give you a quick background on the company.

Revenue Trends

MYGN is a leading provider of genetic testing services and products. The company’s genetic testing services help individuals access their personal genetic information to better understand their health risks, which can help them make more informed health decisions. For example, the company offers the MyRisk™ genetic testing panel, which helps individuals assess the hereditary risk of developing a set of cancers, including breast, ovarian, prostate, and colorectal cancers. Its GeneSight™ service assesses the chance of responding to specific medications and dose specifications for various mental disorder treatments. Precise Tumor™ is the company’s test service assessing…