Myriad to End Development of Flurizan

Myriad's molecular diagnostics tests assess a patients' risk of developing cancer. The most successful of its tests measures a woman's risk of developing breast or ovarian cancer based on the detection of mutations in two key cancer-related genes.

Analyst Geoffrey Meacham of JPM Research said in a research report he wasn't surprised by Myriad's announcement.

"[We] would expect to see significant support for the stock due to investor interest in the predictive medicines diagnostic business," which is growing revenue at 51% in the current fiscal year, the analyst said. "Furthermore, we no longer see a short thesis at this point, and the 30% short interest on the basis of Flurizan is likely to dissolve."

Meacham reiterated his overweight rating on Myriad's shares.