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.
Adam Feuerstein writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

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