Figure 4:
Source: Google Finance
Competition
Myriad has no direct competitors; however, Illumina, Inc. (NASDAQ:ILMN) and Qiagen NV (NASDAQ:QGEN) are two companies that operate in related fields.
Illumina, Inc. (NASDAQ:ILMN) provides products and services in genetic analysis, genotyping and sequencing. The company derives 90% of its revenues from the sale of consumables and instruments and 10% of revenue from instrument service, especially in genotyping and sequencing. During the first quarter of 2013, revenue was $331 million, up by 21% compared to $273 million in the last quarter of 2012. Also, non-GAAP (adjusted) EPS was $0.46 per diluted share compared to $0.36 per diluted share during the same quarter of 2012.
Qiagen NV (NASDAQ:QGEN), on the other hand, is an already established supplier of laboratory consumables in the global market. The company supplies products to research, clinical, and forensic houses that use various genetic techniques. Currently, 50% of sales are coming from molecular diagnostic and 8% are from applied testing. In the first quarter of 2013, Qiagen NV (NASDAQ:QGEN) reported sales of $303.6 million, up by 3% at constant exchange rate (CER) compared to last year due to product expansion across all regions. The growth was driven by both molecular diagnostic and applied testing segments. Also, the adjusted diluted EPS during the period was $0.23 per share.
Prospects
I must ask my readers to recall that Myriad Genetics, Inc. (NASDAQ:MYGN) did get a favorable ruling from an Appeals Court last August. Although that court denied the company’s method patents patentibility regarding genetic comparison, it did substantially agree with Myriad’s position when it said that under Federal patent law there are elements of inventiveness in Myriad’s composition of matter claims.
The ball, so to say, is in the Supreme Court now, and if Myriad wins the legal proceedings the company could be the leader in predictive medicine while focusing on existing products and prospective potential pipeline.
If we look into Myriad’s strong product portfolio, it has nine commercial products including six predictive medicine tests, two personalized medicine tests and one prognostic medicine tests. Commercially, Myriad’s BRAC Analysis is one of the most successful products in the oncology and women’s health segment. It is also evident that more than one million patients are already being benefited from Myriad’s myriad products – excuse the pun – which means Myriad Genetics, Inc. (NASDAQ:MYGN)’s products are well accepted by the medical fraternity.
A lot depends on the Supreme Court ruling. If we look into their prospective products, the company currently does have nine innovative tests, and 14 pipeline candidates in molecular diagnostic test. However, an adverse ruling will directly impact how the company will continue to develop and launch new products to sustain growth potential in the coming years.
The article Judgment Day for Myriad Genetics originally appeared on Fool.com and is written by Kanak Kanti.
Kanak Kanti De has no position in any stocks mentioned. The Motley Fool recommends Illumina and Qiagen. Kanak is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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