According to Fierce Biotech, a rumor out of of the Royal Bank of Canada Capital Markets that Myriad Genetics may be a takeover candidate has resulted in a 7% surge in its stock price. Named possible suitors included - Roche, Sanofi-Aventis, and AstraZeneca to gain access to Myriads cancer marker diagnostics tests to pair with oncology drug development and identification of best responder patient populations for clinical trials.
Recent posts here, here and here have indicated a need for coupling diagnostic development with drug development for the reasons cited above. Biomarker discovery is considered a key area that would aid progress in the oncology field.
Several analysts consider Myriad Genetics to be undervalued due to the recent court ruling against it and the University of Utah that ruled some of its patents on BRCA1 and BRCA2 were invalid. Patents on these two antigens are important to protecting Myriad's breast cancer screen testing service. Many believe this ruling will be overturned on appeal (and of course that will generate another appeal).
Myriad did not comment on the rumors per se other than its CEO commenting that the company prefers to remain independent.
Posted by Bruce Lehr October 15th 2010.
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