Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of molecular diagnostics company Myriad Genetics (Nasdaq: MYGN) dipped 10% earlier in today's trading session following an unfavorable patent ruling for one of the company's peers.

So what: This morning, a U.S. court ruled against Prometheus Laboratories, a unit of Nestle (yes, the maker of those delicious chocolate bars), stating that it could not patent a diagnostic method to observe changes in a patient’s body to determine the best drug dosage for certain diseases. Since companies like Myriad have similar diagnostic technologies, and these companies rely on patents to protect their technology, this could be a major blow to the sector.

Now what: I’ve long been a Myriad bull, and I’m not ready to throw in the towel on one specific ruling. But, I have to admit that today’s patent rejection doesn’t exactly let shareholders sleep easier at night. At 17 times forward earnings, the stock seems fairly valued. It’s definitely a company I’d add to my watchlist considering the boom in diagnostic medicine expected over the next decade.

Craving more input? Start by adding Myriad Genetics to your free and personalized watchlist so you can keep up on the latest news with the company.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.