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Here's his MYGN note from the morning of 6/30/08:
"The exclamation points are probably not necessary given the near universal dismissal of the compound. What's left is a fast growing, profitable, bankers dream of a diagnostics company.
I am sure there are pitch books on the desks of company management discussing the merits of splitting the Pharmaceutical and Molecular Diagnostics companies. I agree with the move. Management is killing the Flurizan development program after $68M in costs and they should probably kill drug development altogether and get on with the business of genetic testing.
Molecular Diagnostics revenue growth is running above 50% with EBITDA margins at 51%, and EBITDA of $29M for the March quarter. MYGN shares look like they will open around 42, or 12X EV/EBITDA on just the Molecular Diagnostics business. With the short interest at 30% of the float, I'd bet the shares are higher from here.
(Chart courtesy of stockcharts.com)