By Sean Williams | More Articles March 11, 2014 |

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 Myriad Genetics (NASDAQ: MYGN) , a company focused on developing molecular diagnostic tests, sank as much as 13% after a U.S. court denied a motion to block a rival from selling a competing BRCA gene diagnostic test.

So what: According to the ruling, a Utah court denied Myriad Genetics' attempt to put a temporary stop to rival Ambry Genetics' ability to market its BRCA 1 and BRCA 2 gene tests. These genes are commonly linked to a higher chance of developing breast and/or ovarian cancer in women. Myriad has laid claim to the patents surrounding the BRCA 1 & BRCA 2 genes for years, using those patent claims to protect its BRACAnalysis test from any competitors. However, a Supreme Court ruling in June last year determined that genes which naturally occur in the body aren't patentable, opening up Myriad's test to competitors. In its 8-K filing, Myriad asserts that it believes its patents are valid, and that it anticipates being victorious. Despite that optimism, no trial date has been scheduled as of yet.

Now what: Following Myriad Genetics is like watching a soap opera just when things begin to calm down a new plot twist enters the picture. As if Myriad didn't have enough ongoing competitive issues, the Centers for Medicare and Medicaid Services recently proposed a nearly 50% reduction in reimbursement rates to its BRACAnalysis test. Although Medicare only makes up a smaller portion of Myriad's total revenue, its BRACAnalysis test made up 69% of total revenue as of the last reported quarter. In other words, Myriad has a lot on the line here.

Ultimately, I'm very excited for the potential of Myriad's prostate cancer diagnostic test, Prolaris, which helps with staging, and feel that as the U.S. population ages the need to offer personalized medical treatment will only further improve the diagnostic landscape. Over the near-term, though, an unclear Medicare reimbursement picture and a bevy of potential competitors makes Myriad a risky investment.

Although Myriad has soared this year, chances are it'll have a tough time keeping up with this top stock in 2014 There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

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Why Myriad Genetics, Inc. Shares Were Spliced

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