Goldman Sachs Has Sell Rating On Myriad Genetics (MYGN)

Goldman Sachs has a Sell rating and a $19 price target on shares of Myriad Genetics MYGN following Myriad's earnings. In a note to investors, Goldman writes, "F3Q11 results revealed improved fundamentals in MYGN's core BRCA business as patient office visit trends stabilized and recent DTC campaigns had a positive impact. We maintain our Sell rating as we believe uncertainty around pricing, patent litigation and traction in Europe will weigh on MYGN shares. Strategically speaking we view the proposed acquisition of RBM as a progressive use of cash, but we continue to believe that MYGN shares will be driven by the BRCAnalysis franchise. We await evidence of increased traction in Europe, clarity on AMA coding for BRCAnalysis (expected fall 2011) and an update on the ACLU patent litigation before getting more constructive on MYGN shares." Shares of MYGN closed at $21.34 yesterday.