Flurizan’s failure adds value

Myriad Genetics Inc. and partner H. Lundbeck A/S were surely disappointed when Flurizan tarenflurbil failed a Phase III trial to treat mild Alzheimer’s disease. But investors made it very clear that they would rather the company focused its resources on its molecular diagnostics business.

Indeed, while Phase III failures usually result in stock price declines of 40-60% or more, Myriad shares rose $4.95 (10%) to $52.88 on the week...