Myriad down on BRCA reimbursement cut
Myriad Genetics Inc. (NASDAQ:MYGN) fell $3.35 (14%) to $20.79 on Monday after CMS reiterated a 2014 Medicare reimbursement rate for genetic tests for breast cancer 1 early onset (BRCA1) and BRCA2 that is almost 50% lower than the rate for 2013. In November, CMS said the 2014 rate for tests for BRCA1 and BRCA2 was $1,438.14. The agency's 2013 rate was $2,795.09. Myriad markets BRACAnalysis at a list price of $3,340 to assess a woman's risk of developing breast or ovarian cancer based on detecting genetic mutations in the BRCA1 and BRCA2 genes.
When the 2014 rate was first announced, analysts attributed the cut to a clerical error. However, CMS has since clarified that the lower 2014 reimbursement rate is due to the availability of cheaper BRCA tests after a June U.S. Supreme Court ruling invalidated Myriad's patents covering BRCA1 and BRCA2 tests. The decision cleared the way for competing BRCA tests from companies such as Ambry Genetics Corp. (Aliso Viejo, Calif.) and Gene by Gene Ltd. (Houston, Texas). CMS said companies are offering BRCA1 and BRCA2 testing at rates of $900-$2,900 (see BioCentury, June 17). ...