Shares of Myriad Genetics plunged Wednesday before markets opened and a day after the genetic test maker chopped its fiscal year forecast due to reimbursement delays and announced the retirement of longstanding CEO Peter Meldrum.
The Salt Lake City company said It was dropping its forecast for the fiscal year that ends in June, partly because of a lag in private reimbursement coverage for its Vectra DA rheumatoid arthritis blood test and a Medicare reimbursement delay for Prolaris, a prostate cancer test.
The company now expects adjusted earnings of $1.50 to $1.55 per share after forecasting $1.90 to $2 per share in November. It dropped its revenue expectation to between $730 million and $740 million from between $800 million and $820 million.
Analysts expect, on average, earnings of $1.67 per share on $759.5 million in revenue, according to the data firm FactSet.
Myriad Genetics Inc., which also is known for its BRACAnalysis test for genetic predisposition to certain types of cancer, said Meldrum will be replaced by Myriad Genetic Laboratories President Mark C. Capone after he retires at the end of the fiscal year. Meldrum, a company co-founder, has served as CEO since 1991.
The company also said Tuesday that it earned in its fiscal second quarter $24 million, or 32 cents per share, on $184.4 million in revenue. Adjusted earnings totaled 40 cents per share, which beat average analyst expectations by 5 cents.
Shares of Myriad dropped more than 18 percent, or $7.09, to $31.03 in pre-market trading Wednesday. The stock had climbed 12 percent so far this year, before Tuesday's announcements.