Myriad’s dominance may be coming to an end

For about two decades, Myriad Genetics has been synonymous with genetic tests for breast cancer risk, minting more than $2 billion on screens for BRCA mutations. A 2013 Supreme Court ruling imperiled Myriad’s market dominance, and we’ve spent the ensuing years waiting for a growing stable of competitors to unseat the powerful company.

Yesterday, we got a strong sign that’s happening. Myriad’s stock price fell about 40% after the company significantly slashed its revenue projections and reported quarterly sales that came well below analyst consensus.

And things look unlikely to improve for Myriad. The company blamed its quarterly dip on small payers declining to reimburse for its genetic tests, but a bigger problem could be afoot when Myriad’s contracts with larger companies come up for renewal. There’s a lot more competition now than there was six years ago, which means Myriad will have to bring down its prices if it hopes to defend its customer base.