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Myriad Genetics Inc. Message Board

  • dorkdude00 dorkdude00 Mar 7, 2013 5:32 PM Flag

    Adverse Supreme Court Ruling possible

    MYGN gets 82 percent of their revenue from the disputed BRCA patents. If they lose the stock should go down 82 percent....that would be to 4 1/2 dollars a share. This stock has a ton of risk in right now. Case will be argued in late April.

    Sentiment: Strong Sell

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    • Silly.

      Myriad gets NO revenue from the disputed patents. They get a lot from BRACAnalysis, which is supported by the disputed patents, other patents, trade secrets and dedicated infrastructure. Competing with Myriad would be difficult.

      The patents are very important to The University of Utah, and Intermune is obliged to defend them.

      • 1 Reply to jacosa
      • You should read a part of the ACLU brief on the issue. Here is a small quote: " By holding patents for BRCA 1 and BRAC 2, Myriad Genetics in essence has a monopoly over those two genes; it has the sole right to prevent anyone from testing or even looking at these genes and can limit access to potentially life saving genetic tests for at risk women."

        You say competing with Myriad would be difficult? The are competing in front of the Supreme Court against the ACLU, who has argued more cases in front of the court than anyone except the US govt, and the Obama administration who has sided with the ACLU. Granted it is a pro business Supreme Court but I wouldn't want to be long this stock now. If they lose the case it will massively tank.

        On just a emotional level I think it is wrong to allow companies to patent genes. They didn't invent them. It's no different than trying to patent any other part of the body. So finally I will admit I have a small short position, but over and above that I hope they lose because I disagree with patenting the human body.

        Sentiment: Strong Sell

    • Bump

      • 1 Reply to dorkdude00
      • Thanks for the replies. I'll admit I'm neither a biologist or a businessman but it still appears this company faces some serious headwinds. As you say their patents are set to expire anyways next year, and some of that may be already factored into the stock price. But as you know when a pharmaceutical company loses patent protection on one of their blockbuster drugs and competition drives down prices usually earnings and stock price suffer. With this company deriving around 80 percent of revenue from products related to these two patents they are already looking at a large earnings hit next year. Throw in the Supreme Court case and there is even more uncertainty.

        Agreed it will be risky to hold my shorts when the Supreme Court case is decided. Haven't decided yet how I'm going to handle that. I don't agree that a sell off if MYGN loses will be short lived. Either way when the case is decided either the shorts or the longs will win.

 
MYGN
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