Here's Why Myriad Genetics Dropped 19.2% in August
Shares of Myriad Genetics (NASDAQ: MYGN) fell more than 19% last month, according to data from S&P Global Market Intelligence. The stock shot out of the gate with a more than 50% gain after it quietly disclosed through a regulatory filing that UnitedHealthcare had agreed to cover the GeneSight Psychotropic test beginning in October. That marked the first major insurer to cover the test, arguably the most important in the company's portfolio, and caught Wall Street analysts off guard. Perhaps the genetic testing stock could reclaim the label of a promising growth stock after all.
But investors soon learned why the disclosure was made in an SEC filing and not in a press release. When Myriad Genetics reported fiscal fourth-quarter 2019 earnings in mid-August, it told investors that the U.S. Food and Drug Administration (FDA) was skeptical of claims made by the GeneSight Psychotropic test and demanded changes. Shares immediately gave up all of their gains for the month -- and then some.
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Source Fool.com
