Shares of Myriad Genetics (MYGN) plummeted 28.95% in pre-market trading on Wednesday, following a series of negative developments that have shaken investor confidence in the genetic testing company. The steep decline comes on the heels of disappointing first-quarter financial results, a weak full-year outlook, and multiple analyst downgrades.

Myriad Genetics reported a substantial operating loss of $29 million for Q1, with revenue falling 3.1% to $195.90 million, missing analyst expectations of $200.56 million. Despite maintaining a gross margin of 69%, the company's high operating expenses, totaling $163.2 million ($140.6 million on an adjusted basis), significantly impacted its bottom line. The adjusted operating loss stood at $5.5 million for the quarter.

Adding to investor concerns, Myriad Genetics provided a cautious outlook for fiscal year 2025, forecasting revenue in the range of $807 million to $823 million and adjusted earnings per share between a loss of $0.02 and a profit of $0.02. This guidance suggests ongoing financial challenges for the company. In response to these developments, several analysts have downgraded their ratings and cut their price targets for Myriad Genetics. Wells Fargo downgraded the stock to Equalweight from Overweight and adjusted its price target to $6 from $22. JP Morgan and Raymond James also lowered their price targets to $6 and $10, respectively, further contributing to the negative sentiment surrounding the stock.