Is Myriad Genetics (MYGN) Poised for a Strategic Rebound Amid Market Volatility and Global Expansion?

The genetic testing industry is at a pivotal juncture, driven by the accelerating demand for precision medicine and the rising prevalence of chronic diseases. Myriad Genetics (MYGN), a key player in oncology and women's health diagnostics, faces a complex landscape of near-term headwinds and long-term opportunities. As the company navigates challenges such as reimbursement cuts and international divestitures, its strategic pivot toward the Cancer Care Continuum (CCC) and global expansion could determine its ability to rebound and secure a durable position in a rapidly evolving market.

Financial Performance and Strategic Resilience

Myriad's third-quarter 2025 results revealed a 4% year-over-year revenue decline to $205.7 million, a figure that masked underlying resilience when adjusted for external factors. Excluding the discontinuation of UnitedHealthcare coverage for GeneSight and the divestiture of its European EndoPredict business, revenue remained flat. Hereditary cancer testing revenue and volume grew by 3% and 11%, respectively, underscoring the segment's enduring demand. The company's gross margin of 69.9% for the quarter further highlighted its operational efficiency according to financial analysis.

Despite these positives, Myriad's stock price remains below its 52-week high of $19.60, trading at a level that suggests undervaluation relative to its strategic initiatives. A 1.74% post-earnings rally in aftermarket trading indicated investor optimism about its revenue beat and product pipeline. The company has reaffirmed its full-year 2025 revenue guidance of $818–$828 million and plans to launch multiple new products in 2026, including an AI-enabled prostate cancer test. These steps signal a disciplined approach to innovation and commercial expansion.

Market Position and Competitive Dynamics

The global genetic testing market is projected to grow from $14.59 billion in 2025 to $91.30 billion by 2034, with a compound annual growth rate (CAGR) of 22.6%. Myriad's focus on oncology and women's health positions it to capitalize on this expansion. In the U.S., the genetic testing market is expected to surge from $4.38 billion in 2024 to $13.9 billion by 2030, driven by non-invasive prenatal testing (NIPT) and pharmacogenomics. Myriad's Foresight Expanded Carrier Screen has benefited from expanded payer coverage, though its GeneSight pharmacogenomics offering faces headwinds due to UnitedHealthcare's policy changes.

In oncology, Myriad's hereditary cancer testing volume grew 11% year-over-year in Q3 2025, supported by electronic medical record integrations and risk assessment programs. However, the tumor profiling segment declined 7% due to the divestiture of its European EndoPredict business. The company's collaboration with SOPHiA GENETICS to develop a global liquid biopsy companion diagnostic (CDx) solution for pharmaceutical companies represents a strategic move to diversify its oncology portfolio.

International Expansion and Strategic Partnerships

Myriad's global ambitions are evident in its partnerships and product launches. The company also plans to expand its MyRisk hereditary cancer test and launch Precise MRD, a molecular residual disease (MRD) test, in 2026 according to strategic planning. These initiatives align with its CCC strategy, which aims to integrate diagnostics across the cancer care lifecycle-from hereditary risk assessment to therapy selection and MRD monitoring.

However, international expansion carries risks. Myriad's revenue growth in Q2 2025 lagged behind its peers, with a modest 0.61% year-on-year increase compared to an industry average of 14.31%. Regulatory hurdles and reimbursement variability in emerging markets could further complicate its global footprint. For instance, the discontinuation of UnitedHealthcare coverage for GeneSight led to a 20% year-on-year revenue decline in its pharmacogenomics segment, illustrating the vulnerability of its business model to payer policy shifts.

Long-Term Viability and Analyst Sentiment

Myriad has raised its full-year 2025 revenue guidance to $818–$828 million, reflecting confidence in its product pipeline and commercial capabilities. A $200 million credit facility and positive free cash flow of $14.9 million in Q3 2025 provide financial flexibility. Analysts remain cautiously optimistic, with an average price target of $8.52 and a potential 16.71% upside from current levels.

Yet, profitability remains a hurdle. A GAAP net loss of $330.5 million in Q2 2025, driven by non-cash impairment charges, underscores the need for disciplined cost management. The company's focus on R&D and strategic alliances-such as its partnership with Mayo Clinic to expand hereditary cancer testing-could differentiate it in a competitive landscape.

Risks and Mitigation Strategies

Myriad's reliance on reimbursement and payer coverage remains a critical risk. To mitigate this, the company is diversifying into MRD testing and therapy selection, areas less susceptible to reimbursement volatility according to market analysis. Additionally, its collaboration with SOPHiA GENETICS to develop AI-driven diagnostics could enhance its competitive edge.

Regulatory challenges in international markets also pose risks. For example, the approval process for liquid biopsy tests and AI-enabled diagnostics may delay market entry. Myriad's partnerships with local players, such as jscreen™, aim to streamline regulatory pathways and expand accessibility.

Conclusion

Myriad Genetics stands at a crossroads. While near-term revenue declines and reimbursement challenges cloud its immediate outlook, its strategic pivot to the Cancer Care Continuum and global expansion efforts position it to capitalize on the genetic testing industry's long-term growth. The success of its 2026 product launches, particularly Precise MRD and AI-enabled tests, will be pivotal. Investors must weigh the company's operational resilience against the risks of regulatory and reimbursement volatility. For those with a long-term horizon, Myriad's disciplined innovation and market positioning suggest a potential rebound-if it can navigate its current challenges effectively.