Imagine a company that takes humanity’s most dreaded diseases, predicts your probability of contracting them and recommends the best course of prevention and treatment at a personalized level.

At best, it sounds like an exercise in wishful thinking.

#-ad_banner-#But there is a company that is using historic biotechnological breakthroughs to target a who’s who of the biggest public health enemies in the world — breast, ovarian,  colon,  prostate and lung cancers; melanoma; rheumatoid arthritis; and autoimmune maladies.

Early diagnosis and treatment is often cited as essential to defeating potentially fatal diseases.  That is often easier said than done, however.

Myriad Genetics, Inc. (Nasdaq: MYGN) uses the human body’s genetic mapping to create landmark results in the field of molecular diagnostics, which has been successful in the United States and has largely untapped global potential.

The company currently dominates the U.S. hereditary cancer market with its flagship product that measures the risk of breast cancer in women with an estimated 82% accuracy rate. I wrote about another health stock with an experimental treatment for Ebola, Tekmira Pharmaceuticals, in August and since then it is up about 70%.

In addition to its expertise in predictive medicine, Myriad offers breakthroughs in personalized medicine by identifying a patient’s probability of responding to certain treatments and their proper dosage — a remarkable one-two punch.

What’s startling is Myriad’s valuation. The company carries a price-to-earnings ratio on a trailing twelve-month basis of only 16.56 — a fundamental more suited for a moderate growth company than a biotech. The industry average P/E is 106.

Myriad also has a price-to-book multiple of 3.97 versus the biotech industry’s 12.59; return on equity of 24.4% versus the industry’s 16.26%; zero debt — a definite rarity among biotech companies; and a whopping operating margin of 37%.

Many analysts have a neutral rating on the stock. So why is Myriad Genetics so unloved?

Perhaps the biggest reason is the 2013 Supreme Court ruling that isolated human genes are not patentable. This threw some of Myriad’s exclusive deals and patents into doubt. The ruling also encourages competition, which places pricing pressure on its breast cancer tests.

In response, the company has mounted a three-pronged defense that should ensure continued growth in genetic diagnostics.

First, Myriad is branching out into many other disease diagnostics besides breast cancer. Its new myRisk Hereditary Cancer test targets 25 different cancers and may soon be extended to lung and prostate cancer, autoimmune and other diseases.

The additional treatments are already having success. For instance, Myriad’s new melanoma test is estimated to be 90% accurate at distinguishing malignant melanoma from benign lesions.

Second, Myriad is pursuing an accelerated acquisition strategy. In February, Myriad announced the acquisition of privately held Crescendo Bioscience. The purchase opened an important revenue stream for Myriad in the global market for rheumatoid arthritis treatment. 

Notably, Myriad CEO Peter Meldrum recently said the company is on the lookout for an acquisition in Europe that could enable the company to lower its corporate tax rate by moving its tax domicile abroad. While the IRS has promised to reduce the attractiveness of so-called tax inversion strategies, a European buy could still be a springboard for Myriad’s global growth ambitions.

Third, the company is rapidly expanding internationally. In the most recent quarter, international revenues grew 89%, adding clients in Spain, Italy, Switzerland, Germany and South Korea. Myriad’s goal is to reach $50 million in international revenue by fiscal 2016. Analysts view the current global market for molecular diagnostics at $5.6 billion and growing to $18.5 billion by 2018.

Against this backdrop, it’s worth noting that a key emphasis in the Affordable Care Act is on preventive medicine — something Myriad addresses brilliantly with its hereditary cancer tests and breakthroughs in predictive techniques.

Medicare already pays some of the costs for Myriad testing, and healthcare giants like United Health also view the company’s products as complementary to their cost-containment wellness strategies.

Risks To Consider: The addition of new rivals following the Supreme Court ruling on genetic patents could be a drag on pricing for Myriad’s legacy products. There is also a risk the company will need more time to win conversions for its new, greatly expanded myRisk Hereditary Cancer test.

Action To Take –> Myriad Genetics’ price still has not recovered to its 2009 highs and remains undervalued compared to other biotechs. The company’s next quarterly earnings results in early November will help clarify the success of its recent product expansion, global growth and acquisition efforts. Watch to make sure the share price does not begin to accelerate before then.

This company has the possibility of changing medicine, possibly the world as we know it. If that kind of investment interests you, our premium newsletter, Game-Changing Stocks, is for you. In fact, we just released a new report detailing “The Hottest Investing Opportunities For 2015.” To learn more about companies with the power to move the markets, click here.