This One's Growing Through the Recession

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Growth is all relative. Sales at Myriad Genetics (Nasdaq: MYGN) increased 40% in its recently completed second half of its fiscal year. But that was a slowdown from the 55% increase in the first half. Investors seem content with that; shares are up about 18% today.

Like everyone else, Myriad Genetics is blaming the slowdown on the recession. Its genetic tests for cancer patients haven't experienced much of a slowdown -- the gross domestic product has very little bearing on whether patients get cancer. But about 30% of Myriad Genetics' business comes from ob/gyns, who have experienced a decrease in activity as patients cut out nonessential costs. According to one study, 14% of women have postponed their annual checkup.

Myriad Genetics has hired more sales reps and launched direct-to-consumer advertisements to get patients talking to their doctors about the tests. We should know in a few quarters whether it worked, but management did say it was comfortable with analysts' consensus of $390 million in revenue for the new fiscal year, a 19% increase over the recently completed fiscal year. That's a deceleration from this year, but it's still pretty impressive.

After spinning off its drug business, Myriad Pharmaceuticals (Nasdaq: MYRX), at the end of June, Myriad Genetics is a much more focused company concentrating on diagnostics. The lack of diversity makes Myriad Genetics a little more risky, but it gives investors potential for outsized returns compared with companies that dabble in diagnostics,  like Genzyme (Nasdaq: GENZ), Life Technologies (Nasdaq: LIFE), or QIAGEN (Nasdaq: QGEN).

That growth could be relatively large, considering the potential for genetic testing as more discoveries are found. Just yesterday, in fact, a study was published about a genetic variation that predicts the response to Bristol-Myers Squibb (NYSE: BMY) and sanofi-aventis' (NYSE: SNY) Plavix. Stuff like that is only bound to help a company like Myriad Genetics.

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Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. The Fool has a disclosure policy.

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  • Report this Comment On August 27, 2009, at 2:07 AM, thomdd1959 wrote:

    The only real financial crisis of the U.S.A. is hiding in the audit of “The Fed Scam”!

    Audit “The Fed Scam” bills HR 1207 must pass in The House and S 604 must pass in The Senate immediately! Any Representative or Senator that does not vote in favor of and support these bills or tries to “water-down” or stall these bills is clearly a Traitor and “Sold Out” the United States of America!

    “Few men have virtue to withstand the highest bidder.” --George Washington

    Does our government think that we are now here to serve them? Are they out of their minds?

    Some of our leaders today have acquired a very “twisted” view of their roles. Do we now have those who can no longer handle the power we entrusted them? Why have they abused and taken advantage of us? Do they no longer think they are accountable to us and believe they can do whatever they please? Our “public servants” have developed a “spirit of insubordination” and have gotten way out of control! This has to stop right now! This is ridiculous! If they do not want to listen to and serve us wholeheartedly, we no longer need them! “We need to do a major house cleaning immediately! Enough is Enough!

    It’s time for “We the People” of the U. S. A. to get VERY ANGRY!

    We need to keep a real close eye on all our government “public servant” employees. Our government was set up to serve U.S. and we no longer want any secrets about our money. We no longer want any misguided governmental arrogance directed at us!

    This Is A Very Public Matter!

    We demand real transparency, with open books and plenty of civilian watchdog czars. Government czars are an insult to the intelligence of the American people! Many of are entrusted government employees are a total disgrace to U.S. They only care about their own best interests!

    The most conniving, low life, manipulators in all of history put “The “Fed Scam” together! Since its inception in 1913, “The Fed Scam” has helped to devalue our dollar by 95%. During the recent economic crisis, it has poured TRILLIONS of dollars into the economy with no oversight, has made secret agreements with foreign banks and governments, and has refused to tell Congress or the American Public who is getting our money. They have the power to print it, but it is not their money! This is our money! They are blood-sucking thieves!

    End “The Fed Scam” Now! We must never again allow private banks to create or control our money! Why should we pay interest on our money! We must never again allow our “public servants”, to keep any secrets about our money! Our big mistake was to trust our government. They can not be trusted! History has taught us this, over and over again. We have been warned over and over again. Why do you think we have so many economic problems now?

    “Congress can revoke central bank’s charter ‘at any time’” --Ron Paul

    http://www.tomdavidd.com/blog/

    Anybody who supports “The Fed Scam” is clearly a Traitor to “We the People” of the United States of America!

    “We can all commiserate forever about how bad things have been, are, and will continue to be. But I don’t think that we can afford to wait for elections in order to have our say about putting a stop to this madness. Enough, already! Let’s start talking treason, prison, and death penalties for all malefactors in government who subvert, ignore, skirt and otherwise trash the Constitution of these United States of America. Those who have sworn to uphold the Constitution and have then ignored their oaths of office are guilty of perjury and malfeasance in office.” –Stephen A. Langford (personal communication to this author)

  • Report this Comment On September 18, 2009, at 7:34 PM, warrenrial wrote:

    I don't think we will have to worry about the Constitution of these United States of America. With the way Obama and his destructionists are handling things there will be no America left to worry about.

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