The much hyped Supreme Court ruling regarding legal claims
that challenge its patent landscape is out for
Myriad Genetics Inc.
) and it seems like a halfway triumph for this molecular
ALEXION PHARMA (ALXN): Free Stock Analysis
ANIKA THERAPEUT (ANIK): Free Stock Analysis
BIOGEN IDEC INC (BIIB): Free Stock Analysis
MYRIAD GENETICS (MYGN): Free Stock Analysis
To read this article on Zacks.com click here.
In Nov 2012, Myriad revealed that the U.S. Supreme Court would
review the decision of U.S. Court of Appeals for the Federal
Circuit. It applies to the company's composition of matter claims
that isolated DNA of the BRCA1 and BRCA2 genes are patentable.
Earlier, in Apr 2012, U.S. Court of Appeals for the Federal
Circuit declared that Myriad's composition of matter claims
covering isolated DNA of the BRCA 1 and BRCA 2 genes were
Following the Supreme Court review, earlier ruling by the Federal
Circuit Court of Appeals to declare the patentability of Myriad's
composition of matter claims covering isolated DNA of the BRCA 1
and BRCA 2 genes were subject to legal scrutiny once again. The
legal claims pertain to the company's flagship Bracanalysis test.
The decision was anticipated in Jun 2013.
While the apex court upheld Myriad's patent claims on
complementary DNA or cDNA, the other five claims from the company
to cover isolated DNA were declared not eligible for patents by
the U.S. Supreme Court. According to the Court, most of Myriad's
unchallenged claims pertain to 'method claims' applying knowledge
about BRCA 1 and BRCA 2 gene. This implies patent eligibility for
the company's 'method claims'.
Subsequent to the ruling, Myriad currently has over 500 valid and
enforceable claims in 24 various patents for its Bracanalysis
test. This still reflects a solid patent landscape for the
company's primary revenue driver.
The landmark Supreme Court ruling declared that isolated human
genes are not patentable. This represents a downside for Myriad.
As a result, the stock tanked 13.81% (or $4.42) on Jun 14
following the much awaited decision.
This is likely to spur competition for the company as its
leadership in the market stands challenged. The decision also
provides headway for other companies in the market which Myriad
served with its exclusive Bracanalysis test. With the entry of
new players, imminent price competition is another cause of
Nonetheless, cDNA or synthesized DNA was declared patentable. The
Supreme Court also upheld the patent eligibility of the company's
method claims. As most of Myriad's patent claims were upheld, the
company still has a strong patent protection for its Bracanalysis
We wait to see the impact of the Supreme Court ruling on Myriad's
growth profile going forward. Until then, the stock carries a
Zacks Rank #1 (Strong Buy) on the back of positive estimate
revisions for the ongoing and next fiscal and stellar earnings
performance over the past few quarters.
Other Zacks Rank #1 stocks that warrant a look are
Anika Therapeutics Inc.
Biogen Idec Inc.
Alexion Pharmaceuticals, Inc.
), carrying a Zacks Rank #2 (Buy) is also likely to do well.