The Myriad case has been closely watched by the biotechnology industry, with some insiders suggesting that a ruling against gene patenting could have a devastating effect on future innovation.

The Supreme Court ruled last week in a separate case involving medical diagnostics that companies cannot patent observations about a natural phenomenon. On Monday, it asked the lower court to revisit the Myriad case to view how it may or may not relate to that decision.

The move is expected to delay a verdict in the Myriad case by as much as several years. In the case of the individual company, that may give it enough time to benefit from the use of its contested patents. Shares in Myriad rose over 3 percent.

"Our intellectual property consultant could potentially see a scenario where the case doesn't move its way back to the Supreme Court for another 2 to 3 plus years, keeping the BRACAnalysis franchise safe from competition," said Junaid Husain, a research analyst for Dougherty & Co.

Women who test positive using Myriad's gene test, called BRACAnalysis, have an 82 percent higher risk of developing breast cancer and a 44 percent higher risk of ovarian cancer in their lifetimes. Such tests could help determine a future course of therapy.

The appeals court by a 2-1 vote had ruled the genes isolated by the company could be patented because Myriad is testing for distinctive chemical forms of the genes, and not as they appear naturally in the body. The dissenting judge said the genes could not be patented just because they were isolated from the body.

The patents granted to Myriad give the company the exclusive right to perform the genetic tests. The appeals court in its ruling in July also found that Myriad's method for screening potential therapies can be patented.

The appeals court had overturned a ruling by a federal judge in New York that the genes could not be patented.

HOW BIG A HURDLE?

Michael Yee, biotech analyst for RBC Capital Markets, said the Supreme Court not taking up the case on Monday was positive for the biotechnology industry.

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Supreme Court throws out human gene patents

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