In The Oberweis Report, growth expert Jim Oberweis. Jr. sees upside for risk-oriented investors in two diagnostics firms: Myriad Genetics (NASDAQ: MYGN) and Thoratec (NASDAQ: THOR).

"Myriad develops molecular diagnostic products focused in the area of predictive caner diagnostics. It currently sells five genetic tests (and just recently announced the launch of a 6th test in December) focused on cancer and women’s health.

"The bulk of their revenues currently come from their BRACAnalysis test for breast cancer. This test is the only one of its kind available to detect a faulty version of BRAC genes in women, which has been linked to significantly increased chances of developing breast and ovarian cancers.

"In the company’s latest reported first quarter, sales increased approximately 53% to $73.6 million from $48.3 million in the first quarter of last year.

"Myriad Genetics reported earnings per share of $0.30 in the latest reported first quarter versus a loss in the same quarter of last year.

"Note that revenues in the latest reported June quarter included a one-time licensing payment of $100 million which makes the year over year growth comparison appear slower than it otherwise would. Clients of Oberweis Asset Management own approximately 1,500 shares.

"Thoratec is a leader in therapies to address advanced heart failure (HF) and point-of-care diagnostics. For advanced HF, Thoratec develops, manufactures and markets proprietary medical devices used for mechanical circulatory support.

"The company’s primary product lines are its ventricular assist devices (VAD), including the new HeartMate II product, which received FDA approval in April 2008. The product is also CE Mark approved in Europe. VAD’s are clinically proven to improve patient survival and quality of life.

"In the company’s latest reported third quarter, sales increased approximately 44% to $80.8 million from $56.1 million in the third quarter of last year.

"Thoratec reported earnings per share of $0.17 in the latest reported third quarter versus $0.04 in the same quarter of last year. Clients of Oberweis Asset Management own approximately 184,000 shares."