"Predictive medicine is now a possibility because a person’s genetic predisposition for certain diseases can be uncovered through molecular diagnostics," explains growth stock expert Dave Dyer.

In the Dave Dyer Newsletter, he looks at one leading player in the field, Myriad Genetics (NASDAQ: MYGN), adding, "Genetically-based, personalized medicine may be one of the most important developments in decades."

"Not all diseases have a genetic component, but some serious cancers certainly do. MYGN has tests for a predisposition for breast cancer, ovarian cancer, melanoma, and colorectal cancer.

"Using the specific genetic characteristics of an individual to predict diseases, diagnose conditions, and determine the most effective treatment will vastly improve medical care while saving money.

"There is no need of a 'one size fits all' approach when we have access to each person’s unique genetic makeup. 

"Early diagnosis is extremely valuable, but prediction may be even more valuable as we develop new treatments to prevent the onset of diseases like cancer and Alzheimer’s disease. Insurance companies were quick to recognize the cost savings and they are mostly willing to fund the tests.

"MYGN is in a strong position in a rapidly growing market. They are growing revenue by 30% to 50% per quarter and have no debt.

"At a $3.3 billion market cap, they are already a substantial company. The second quarter of 2008 was their first profitable quarter, but I think I would attribute that to good luck, as the company had sold the rights to a a drug that later failed in Phase III trials.

"That left the company who bought the drug with a worthless product and MYGN with a profitable quarter. They were also profitable in the third quarter, and it looks like we can expect more profitable quarters to come. 

"There are some more good results from the failure of Flurizan. MYGN has been run as a company with two divisions. The drug development division is a high-risk, expensive, long lead-time business, while the predictive genetics testing business is low-risk and would be profitable on its own.

"Given this 'odd couple' combination, MYGN has decided to split itself into two companies. The drug development business will be called Myriad Pharmaceuticals and it will be spun off to shareholders as a stock dividend some time in 2009.

"This business employs about 200 people and has four drug candidates currently in clinical trials. That leaves the genetic testing business as a profitable entity with about 800 employees.

"Spin-offs are frequently positive for shareholders because they create opportunities for the creative juices to flow and also produce a lot of pressure to show immediate results. 

"The other potential benefit of this spin-off is that both companies now become more attractive acquisition targets. Athough the stock has appreciated over 500% over the last 6 years, I think the best is yet to come."