Sequenom, Inc. (NASDAQ:SQNM)

CAPS Rating: 3 out of 5

A genetics company committed to providing genetic analysis products and services that translate genomic science into superior solutions for the biomedical research, molecular medicine, agricultural, and non-invasive prenatal testing markets.


Player Avatar bevo002 (44.18) Submitted: 11/28/2011 7:46:49 PM : Outperform Start Price: $4.20 SQNM Score: -93.59

Full disclosure. I am in the business side of healthcare. Well versed in OB pathways and the revenue cycle.

1. Insurance inclusion is certain. Amniocentesis includes both a professional and technical charge against the insurance provider, as well as a ultrasound charge separate from the Amnio procedure itself. It is higher when the procedure is done in a hospital-based clinic. The SQNM test is a single charge ancillary. This alone will provide savings to carriers.

2. While insurance coverage is certain, there should have been no rational believe that agreements could have been struck prior to the release of the data. Carriers needed to see if the test was clear enough to supplant amnio in the pathway, and (most importantly) how often. You cant run that point estimate without the data.

3. There are a range of referring doctors that would prefer to avoid amino simply for throughput reasons. MFM's have higher value activities that they can engage in...nearly across the board. Front-line OB's need to be in a posture to be admitting/performing on a moments notice with their patient base. In particular, OB's in a RVU model of reimbursement would do better to avoid this long, cautious procedure if an alternative was available

4. The technology has enormous intrinsic value. If SQNM lacks the chassis to deploy it, there are several companies that will find the technology to be highly accretive to their existing business development infrastructure.

5. SQNM has the appearance of a highly maliciously manipulated stock. The manipulation is of no consequence except to the holders that were seeking ST gains or have ST liquidity needs.

6. Undoubtedly, there will be a sharp indefensible correction that will trap the short speculators. Bulls, Bears, & Pigs...... Prior to the release of the data, one could make a good case for posturing as either a Bull or Bear.... Today, the only option is Bulls & Pigs.

Report this Post 4 Replies
Member Avatar unkownuser (98.10) Submitted: 11/29/2011 2:50:37 PM
Recs: 0

This is the type of irrefutable industry insight that astute investors will be paying close attention to. Bottom line here: As long as the SQNM test has been clinically validated (which it has), the insurance companies then only have to look at the total cost of other options used for the same purpose. In this regard, SQNM's MaterniT21 blood test is is a SLAM-DUNK-HANDS-DOWN WINNER beyond the need for any further discussion. Insurance companies will not accept the higher cost, higher risk, and higher liability of amniocentesis when a blood test will yield the same diagnostic information. MaterniT21 WILL REPLACE the amniocentesis procedure.

Member Avatar Straightener (< 20) Submitted: 12/3/2011 1:14:33 PM
Recs: 1

I am a Sequenom investor, and I agree with everything bevo has to say, however unkownuser is not correct with regards to MaterniT21 replacing amniocentesis. I used to believe that was the case, but upon further investigation I discovered that amnio will still be used in many (not most, probably) instances. This is because amniotic fluid can be tested for a wide range of abnormalities. Genetic testing on amnio includes T13, T21, cystic fibrosis, spina bifida, neural tube defects, and many others. It can also be used to determine if the unborn baby's lungs are developing properly. MaterniT21 tests only for Down T21, and nothing else. If the patient needs testing only in regards to T21, then absolutely Sequenom will profit. But if the patient needs screening for cystic fibrosis, or a combination of genetic screenings, then amnio will be required (and will negate the need for MaterniT21 testing).

Having said that, I still feel that this test will be a huge profit boost for Sequenom, and I am adding to my position here in the low $4 range. Those of us who are long this stock should use the downward manipulation as an opportunity to make money. This is a well-run company and should become profitable in 2012 IMO.

Member Avatar unkownuser (98.10) Submitted: 12/4/2011 7:01:02 PM
Recs: 1

For the predominant purpose that amniocentesis is used for, MaterniT21 will replace it... Now if you have invested in SQNM, and are going to pontificate on the merits (or lack of) of MaterniT21, then I'm surprised you are unaware that MaterniT21 also tests for T13 & T18 (though not clinically validated by peer reviewed study). The information provided on these other aneuploidies has apparently been deemed to be on par with that provided for T21, again there just has not yet been a clinical validation.

So will amniocentesis disappear entirely?, probably not... Just as the automobile replaced the horse & buggy, you can still find the horse & buggy around... But for the purposes of testing for Down Syndrome, T13, T18 (and more to come) amniocentesis will become (like leeches and blood letting) a virtually obsolete technology.

Member Avatar zzlangerhans (99.73) Submitted: 12/10/2013 9:04:01 AM
Recs: 1

"Expert opinion", accusations of stock manipulation, confirmation bias, CAPS lock, bad grammar, numerous spelling errors - all the signs of danger are present in this pitch and the replies. I need to do a better job of finding these contrarian indicators.

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