Sequenom, Inc. (NASDAQ:SQNM)

Best public play on a revolution in genetic disease testing. Also ilmn

My pregnant physician friends made it a point to get this test for themselves.

estimates rev.will expand 68.7% & eps will remain red for rev.of $18.3 M gaap reported sales were 37% higher than the prior Yr. Q's $13.3 M esp last Q preceding Q esp came in at -$ -0.26 gaap esp were -$0.26 for Q2 verses -$0.21per share for prior yr Q preceding Q gross margin was 32.2% 3,460 base points worse than the prior yr. Q.net margin -162.3% 560 base points worse than prior yr

Non-invasive prenatal screening is the future. On top of that:

1) Just closed $130m of financing (no more shareholder dilution required to get to profitability)
2) Rapid growth with international expansion
3) First to market with non-invasive test
4) 2013 FDA approval of low-risk testing
5) As time goes on, more and more insurers will provide coverage
6) Other tests are growing as well (AMD, CF, etc.)
7) Buyout potential

Any guidance provided by Sequenom management has to be taken with about a bucket of salt, after one of the most egregious data falsification scandals of the last ten years crushed the share price in 2009. Management states that they now have a proven test for Trisomy 21, but they've chosen the less rigorous, non-FDA regulated homebrew pathway to market the assay. This requires Sequenom to perform each test themselves in their own facility, which seems like a weaker approach than actually farming the test out to individual laboratories. Towards that end, Sequenom has initiated new trials aimed to achieve FDA device approval of the MaterniT test, but they can certainly expect to encounter a skeptical mindset at that agency given their prior shenanigans.

Sequenom wasn't very interesting to me as a green thumb when the stock crested over 5 ahead of the last quarterly earnings PR. But after the company was vague once again about MaterniT revenues and a reimbursement agreement with Coventry Healthcare was abruptly canceled, the stock got interesting. The share price dropped as low as 3.5 despite the fact that Sequenom has another reimbursement agreement with Multiplan Incorporated, a much larger provider than Coventry. More agreements with large providers may be announced in the near future.

You can't blame Sequenom investors from getting spooked easily. But if this company really does have the asset they claim to have, they will ultimately get sales and reimbursements that will drive the share price back into the teens.

Sequenom just announced coverage agreement with Coventry Health Care for Sequenom Center For Molecular Medicine's MaterniT21 PLUS Lab-Developed Test

as run rates grow at an exponential rate, cash generated will put too much pressure on those shorting the stock until they capitulate..

The Genetics field will only continue to expand. What cost Steve Jobs $100,000 to have done, gene sequencing, only costs $20,000 today. Greater support by the health care insurance industry will be a lock as the prices go down.

SQNM is the future of medicine. people should invest in this share instead of technology for entretaiment.

There are currently 68400 SQNM shares in my "fund" with break-even of around 4.45 USD.
http://caps.fool.com/Blogs/fund-trades/678775.

Huge market for a harmless blood test which can give you results almost as accurate as amnio.

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.

haven't I had enough aggravation since August? I bought the dip on 10/18 @ 5.10. I have taken the wild ride known as SQNM before so I realize the dangers!

I couldn't help myself in Real Life @ 5.10

Good spot for the long haul I feel...

Great upside potential from their blood screening testing model

Over all is a good buy

Sequenom will eventually figure out a way to perform non-invasive testing for Down syndrome.

time for this baby to launch

This stock will double or triple in the next 2 years