Diagnostic Kits/Competitive advantages in Kits

Answer the questions:

1. Define the competitive advantages in the field and the barriers of entry

penumbra effect

• tests with genes in common lead to one lab having a functional monopoly over the group of diseases that require the common gene or mutation Cook-Deegan et. al., 2009.

The Myriad Story

• Patent-Mediated Standards in Genetic Testing
  • "2006, Dr. Mary-Claire King and her colleagues published a study in the Journal of the American Medical Association" (page 16)
    • patented materials where licensed by the lab at a high licensing fee
    • the labs use of multiplex ligation probe amplification (MLPA) was a dramatic improvement over the current Myriad test
  • "Despite the fact that the work of King and her colleagues did not duplicate any clinical service offered by Myriad, the company’s response indicated that its patents would likely be infringed by any clinical testing based on the results from the King study" (page 17)
  • Myriad has strong commercial control over genetic testing options due to its patent holdings

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