Myriad Aims to Protect its Remaining Patents
- Posted by Danny
- on October 15th, 2013
The bearish case for owning MYGN is that other players in the industry can mimic the tests and compete directly with MYGN, potentially driving prices down. The bullish case is that SCOTUS upheld many of Myriad’s BRCA related patents, and if competitors are infringing on those valid patents, lawsuits may be in order.
The stock has taken a beating over the last few months as most investors have jumped on the bear bandwagon (and have been right to-date). But if you’re like us and want to take the other side of this trade, consider this point from the article:
Not everyone agrees that a race to the bottom is in the works. Myriad has several advantages over other players: it has other patents that were not touched by the Supreme Court decision; it controls a proprietary database of which variants in the BRCA1 and BRCA2 genes increase the risk of breast and ovarian cancer, and by how much; and it has developed a good reputation among cancer doctors and gynecologists, who have no reason to switch to a new test just because it is cheaper so long as insurers pay for the old one. Myriad has reason to fight, because it gets much of its $613 million in annual sales from sales of the BRCA tests.
We’re currently long MYGN. They report Q1 on 11/4.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Daniel Miller and Jason Robinson are self taught investors based in Daphne, Alabama, and are the co-founders of the WallStreetBean. Neither one of them are professional investors - just two regular guys who want to share their investing ideas and thoughts with others. More