Myriad Genetics (MYGN) Sells myPath to Focus on Core Units
Zacks Investment Research | Jun 01, 2021 10:19PM ET
Myriad Genetics (NASDAQ:MYGN), Inc. MYGN has been in the headlines lately, thanks to the company’s efforts to focus on its core Women Health, Oncology and Mental Health businesses. In this line, the company recently divested its wholly-owned subsidiary -- Myriad myPath Melanoma, LLC to Castle Biosciences (NASDAQ:CSTL), Inc -- for a total value of $32.5 million in cash.
For investors’ note, Myriad myPath Melanoma is a laboratory that offers the myPath Melanoma test. It is being used by almost 40,000 patients to guide treatment decisions and has been ordered by nearly 20% of dermatopathologists in the country.
Given the developments, the company is expected to successfully capitalize on its core business and get closer to achieving its long-term growth and profitability targets.
Few Words on Castle Biosciences/h3
Castle Biosciences is a skin cancer diagnostics company that offers personalized genomic information to improve cancer treatment decisions. It develops and commercializes diagnostic and prognostic tests for dermatologic cancer.
Notably, the company’s tests offer clinically actionable, tumor-specific genomic information to enable more accurate treatment plan decisions.
Significance of the Divestment/h3
Per Myriad Genetics’ management, the divestment of Myriad myPath Melanoma to Castle Biosciences will enable the former to meet its objective of ensuring that patients continue to have access to this important test and provide value to shareholders. Moreover, the divestiture will offer growth capital for the company’s future investment.
In May 2021, Myriad Genetics entered into a definitive agreement to sell Myriad RBM, Inc. to Q2 Solutions. The divestiture will enable the company to accelerate the execution of the transformation plan and focus on advancing its core businesses in Women’s Health, Oncology and Mental Health.
In the same month, Myriad Genetics entered into a definitive agreement to vend select operating assets and intellectual property (IP), including the Vectra test, from Myriad Autoimmune’s business unit to Laboratory Corporation of America (NYSE:LH) Holdings or Labcorp Zacks Investment Research
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