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According to the complaint, Myriad is a molecular diagnostic company that develops and markets predictive, personalized, and prognostic medicine tests worldwide. Myriad offers, among other products, GeneSight, a DNA genotyping test to aid psychotropic drug selection for depressed patients; and Foresight, a prenatal test in the expanded carrier screening market for future parents to assess the risk of passing a recessive genetic condition to their offspring.
The Class Period commences on September 2, 2016. On September 1, 2016, during after-market hours, Myriad issued a press release announcing its completed acquisition of Assurex Health, Inc. (“Assurex”) on August 31, 2016. The press release quoted Mark Capone (“Capone”), Myriad’s President and Chief Executive Officer, who touted that the acquisition of Assurex had established the foundation for Myriad’s neuroscience business and leveraged its existing preventative care business unit with the addition of GeneSight, which purportedly had significant growth potential. On July 31, 2018, Myriad announced that it had closed its acquisition of Counsyl, Inc. (“Counsyl”). The acquisition of Counsyl provided Myriad with two new products, ForeSight and Prelude, in the expanded carrier screening and non-invasive prenatal testing markets, respectively.
According to the complaint, on August 13, 2019, during after-market hours, Myriad issued an earnings release wherein Myriad reported its fiscal fourth quarter and full year 2019 financial results. Therein, Capone disclosed that “[u]nfortunately, revenue in the fourth quarter was two percent below expectations largely due to lower reimbursement for our expanded carrier screening test” - i.e., Foresight. Later that day, Myriad filed an Annual Report on a Form 10-K with the SEC, reporting Myriad’s financial and operating results for the fiscal year ended June 30, 2019. In the Form 10-K, the defendants disclosed that the U.S. Food and Drug Administration (“FDA”) had questioned whether the validity of GeneSight’s purported benefits had been established. The Form 10-K also revealed that, since at least late 2018, the FDA had increasingly questioned the claims of marketed genetics tests, such as GeneSight. Following this news, Myriad’s stock price fell $19.05 per share, or 42.76%, to close at $25.50 per share on August 14, 2019.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) GeneSight lacked evidence or information sufficient to support the tests in their current form, including their purported benefits; (ii) the FDA had requested changes to GeneSight and questioned the validity of the test’s purported benefits; (iii) Myriad had been in ongoing discussions with the FDA regarding the FDA’s requested changes to GeneSight; (iv) Myriad’s acquisition of Counsyl—and thereby, Foresight—caused Myriad to incur the risk of suffering from lower reimbursement for its expanded carrier screening tests, which had the potential to, and actually did, materialize into a material negative impact on Myriad’s revenue; and (v) as a result, Myriad’s public statements were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than November 26, 2019 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Returning the attached form or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
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