3SOF

AP
Last Call: Sequenom hits 6-year high
Friday June 13, 4:30 pm ET
By Marley Seaman, AP Business Writer 
Sequenom hits 6-year peak as SEQureDX Down syndrome data draws interest from funds


NEW YORK (AP) -- Shares of Sequenom Inc. climbed to a six-year high Friday, capping a lengthy surge after the company said its prenatal Down syndrome test was effective.
The stock is up 67.6 percent since June 3, the day before Sequenom said the SEQureDX test was effective in all 200 tested samples, with no false positives. The company said it plans to start a larger study later this year and launch the product in early 2009.


The stock rose $2.10, or 16.4 percent, to finish at $14.94, and earlier peaked at $15.25, its highest value since May 28, 2002. Shares have tripled in value since August.

Filings with the Securities and Exchange Commission Friday showed that Boston-based RA Capital Mangement's Biotech Fund bought 622,000 shares of Sequenom. According to Capital IQ, the company owned about 5.4 million shares, or a 12 percent stake in Sequenom, as of June 2.

Overall, trading was almost seven times heavier than average.

In a telephone interview, Oppenheimer analyst Kevin DeGeeter said that since the Down syndrome data was reported, "you have a number of institutions here that have bought significant shares."

In a Thursday client note, DeGeeter said SEQureDX is one of three highly profitable tests the company should launch over the next year. The others are tests that identify the gender of a fetus and identify RhD incompatibility.

Those products will help make Sequenom profitable by late 2009, he said.

AP
Sequenom to sell 5.5 million shares to public
Monday June 23, 9:23 am ET 
Sequenom to sell 5.5 million shares in public offering, use proceeds for test development


SAN DIEGO (AP) -- Sequenom Inc., which makes genetic testing products, said Monday it will launch a public offering of 5.5 million of its common shares, or about 12 percent of the company's outstanding stock.
The company also will grant underwriters a 30-day option to purchase up to an additional 825,000 shares of common stock. All of the shares are being offered by Sequenom.

Sequenom expects to use proceeds to develop diagnostic tests for use on its MassArray system and other platforms, and for general corporate purposes.

The company currently has about 45.4 million common shares outstanding.

Lehman Brothers Inc. and UBS Investment Bank are acting as joint book-running managers in this offering. The co-managers are Leerink Swann & Co., Lazard Capital Markets LLC, Oppenheimer & Co. and Rodman & Renshaw LLC.

Offering...
short the pop in anticipation of a drop when the offering is priced.


52wk Range: 4.25 - 16.89
Volume: 4,253,252
Avg Vol (3m): 1,128,510
Market Cap: 723.77M
P/E (ttm): N/A
EPS (ttm): -0.64
Div & Yield: N/A (N/A)

Technicals
Record Price High
Percentage Gainer

RS Rating: 98 

Fundamentals
Key Data:
Market Cap (M): $647.04 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: 08/11/2008
Last Analyst Rating: Buy

Profile:

Sequenom, Inc. is a genetics and molecular diagnostic company providing genetic analysis products and services and developing diagnostic tests initially targeted at non-invasive prenatal genetic disorders. The Company's genetic analysis business provides applications that translate genomic science into solutions for biomedical research, agricultural and molecular medicine applications and diagnostic applications including non-invasive prenatal diagnostics. Its MassARRAY system is a deoxyribonucleic acid (DNA) analysis platform that measures the amount of genetic target material and variations therein. Based on its discoveries, the Company has developed diagnostic and therapeutic content for potential partner out-licensing and commercial development opportunities

Market Cap: $1.1B
Sector: Healthcare - Biotech and Drugs
Web: www.sequenom.com

Trade Idea : Fundamentals : Technicals

SQNM has had a monster rise this year based on a potentially fundamental shifting development in the detection of Downs Syndrome in pregnancy. The current testing methodology is invasive (to the body) and can cause complications including miscarraige. Also the accuracy of the SQNM test seems to be vastly superior to the current methodology. Article Quote: "NO FALSE POSITIVES" There are tests for Down Syndrome already on the market, but, says Bassett, Sequenom's product removes prevailing concern about their accuracy.

Sequenom's test, called SEQureDX, screens a pregnant woman's blood for certain biomarkers from the unborn child to determine whether specific genes are functioning in a way that is linked to the syndrome. There have been lawsuits against physicians who have failed to detect the presence of Trisomy 21, the genetic variation that causes Down's -- yet another reason for improving the accuracy of such tests, says Bassett.

To validate its technology, Sequenom has announced results from 200 clinical studies that showed its test identified all Down Syndrome samples with "no false positives," says Bassett. Based on those findings, the company expects to launch a 10,000-patient study of SEQureDX in the second half of 2008 in preparation for the product's commercial launch in the second quarter of 2009.

Bassett predicts that if the big study validates earlier results, Sequenom's diagnostics could become the front-line test in this large diagnostics market.

$6-$8 billion potential? Sequenom CEO Harry Stylli says the SEQureDX test provides 99% accuracy in "sensitivity and specificity." In the U.S. alone, he says, where there are six million pregnancies each year, the potential market for Sequenom's test runs to about $1.5 billion to $3 billion. Worldwide, the potential could be up to $6 billion to $8 billion, he adds.

Peter Kolchinsky of RA Capital Management, which owns a 10% stake in Sequenom, says the test's value is enormous because the magnitude of the difference in accuracy when compared with existing tests "is so large." He considers it the Holy Grail to obstetricians who have been seeking a precise and noninvasive screening for Down Syndrome. Based on the millions of pregnant women each year in the U.S. who would surely opt for this more accurate test, he estimates that Sequenom will see sales of up to $2 billion by 2012. On that basis, he says the stock's potential is still underappreciated and ventures that the shares could again triple or quadruple from their current level in four years"

Full Story quoted above: http://www.redorbit.com/news/health/1524813/marcial_sequenoms_down_syndrome_test/

So we have a huge 'possibility' developing in the shape of the new test, and if it turns out to be as suggested then the stock price has plenty of upside potential to play. Even when we take into consideration the rise this year from the $5 lows. Biotechs have been one of the standout sectors recently and if we get any bullish market sentiment (longer than a few days) then SQNM is in the right place right time.  I have a longer term view on this trade, but that can change depending on what happens from a technical perspective. Right now we have consolidation between $18 and $23, thus we can construct 2 possible buys - entry on the upside break or entry on the pullback to support. The $18 zone has both the 50ema and horizontal support coinciding so would make a great potential entry point. An upside volume backed break of the desending resistance a little riskier but also an excellant set-up. The standby trade plan therefor a bit complicated as detailed below.

Standby Trade Plan:
Buy SQNM the day following a close above descending support
or
Buy SQNM if it trades at $18.50 or below

Update:

The current market is not nice, but SQNM is. Showing high relative strength yesterday as most of the market (led by the financials) was having a bad time.

The standby trade plan was watching for either a pullback or breakout play, looks like we have the breakout play shaping up on decent enough volume. The stock closed at a 52 week high, touching $23 intraday and pulling back from there to close $22.33. Now we could wait for a break of $23 to really confirm the 5 weeks or so of consolidation are over and a new bullish phase is starting, but I prefer to act decisively and enter on the break of short term descending resistance per my chart.

I note that SQNM has gained a large short sold position against it. Around 20% of the float is sold short (9M shares), this is normal for stocks that have had such a huge run up, people take short positions based on their feeling that it MUST come down because it has gone UP SO much. I view such a short position as a positive to fuel further upside, that is very often how stocks keep upward momentum despite what people might think.

Trade Plan:

BUY SQNM at or around the open

Update:

A lot of volatility in the trading day for SQNM, decent volume, but ultimately the upside action couldn't hold and the chart is left with a somewhat ugly and bearish candle representing a breakout attempt liable to fail. The overall market sentiment obviously weighing on the momentum.

Anyway, 1 candle whilst worth noting, is not a reason to change my view on SQNM. We have a lot of support in the $20 and above area and we need to give this continuation pattern a chance to play out. As I said before the market is ugly but SQNM is a standout bull.

Trade Plan:

HOLD SQNM

Update:

The last 2 sessions for SQNM from a candlestick analysis point of view didn't look too great as it tried to breakout on decent volume but failed. That said even though the breakout didn't stick the price action didn't contravene any notable support areas so I had no concerns as to the underlying bullish pattern in play. With the general market cooperating and the biotech sector in line I see the $23 resistance zone being put behind SQNM very shortly.

I note Lazard Capital have SQNM as a BUY with a target I think around $34, I will get a copy of their research and post it here when available.

Trade Plan:
HOLD SQNM

Update:

Just a quick update, nothing fundamentally changed and technically it is hanging around the breakout point as it was previously. I am very comfortable with the way SQNM is acting in this consolidation / near breakout action.

I mentioned before there was a buy recommedation from Lazard Capital and a $34 price target. That report is attached at the end of this update. Basically they summize that SQNMs Downs test will be approved by ACOG and sooner than perhaps expected. It is a very short and to the point report.

No change to the trade plan required at this stage.

Trade Plan:
HOLD SQNM

Update:

SQNM is the stock I am most comfortable with on the long side currently. It is grinding its way higher in the face of an ugly overall market. Yesterday it broke out early on, but succumbed to selling later in the day (although only a small decline on a relative basis)

I won't put a hard stop in just yet with SQNM, the chart clearly shows the support area. The stock holding the $22 zone in this environment for me is very bullish longer term.

Trade Plan:

HOLD SQNM

Update:

SQNM continues to show great relative strength, I see it holding onto`these new highs (and indeed breaking to new 52 week highs shortly).

There are no changes in terms of fundamental news. We know that on 23rd and 24th Sept they will be presenting an analyst and investor briefing day (see link below) which might act as another cataylst to push the momentum upwards.

Presentation dates: http://www.marketwatch.com/news/story/sequenom-present-september-investment-conferences/story.aspx?guid=%7B99427337-E6B3-494A-BA3F-39FD6A652167%7D&dist=hppr

Trade Plan:
HOLD SQNM

Update:

SQNM shows good support at the 50ema which was tested yesterday just under $20.

The overall market is in a terrible state, SQNM is still holding up well (relatively). It is time to put a stop in place to protect us from the influence of the negative market. Stop will be placed below the 50ema and outside 'usual' volatility range, not as low as tghe early Aug pivot low as I want that not to be tested.

Trade Plan:

HOLD SQNM with STOP at $19.25

Press Release Source: Sequenom, Inc.


Sequenom Acquires Exclusive License to Digital PCR and Other Noninvasive Prenatal Diagnostic Intellectual Property
Tuesday September 16, 4:00 am ET


SAN DIEGO--(BUSINESS WIRE)--Sequenom, Inc. (Nasdaq: SQNM - News), a leading provider of genetic-analysis solutions, today announced that it has acquired exclusive worldwide rights (excluding Hong Kong) to digital PCR and other noninvasive prenatal diagnostic intellectual property from The Chinese University of Hong Kong. These newly acquired rights expand Sequenom's existing, broad intellectual property portfolio of noninvasive prenatal diagnostic methods using fetal nucleic acids obtained from a maternal sample. Financial terms were not disclosed.
ADVERTISEMENT


"Over the past several years, we have acquired numerous intellectual property assets to protect our plans to enter the noninvasive prenatal genetic diagnostic market and this license is another important addition to our broad and deep IP position in this area," said Harry Stylli, Ph.D., Sequenom's President and Chief Executive Officer. "Our intellectual property includes exclusive rights to the widely recognized and pioneering work of Professor Dennis Lo of the Chinese University of Hong Kong and others. This intellectual property is platform-independent and provides Sequenom exclusivity for development and commercialization of noninvasive prenatal tests on any platform. This agreement expands our leadership position as we continue to advance our clinical development program and commercialization plans for our proprietary, noninvasive Trisomy 21 Down syndrome maternal blood test and other innovative prenatal diagnostic tests."

The exclusive, technology-independent, digital PCR rights announced today, which were developed and validated on Sequenom's MassARRAY® platform and Fluidigm's platform, can be adapted for any of the digital PCR platforms that are available, and include the use of fetal nucleic acids obtained from a maternal sample, along with methods of analysis for noninvasive Down (trisomy 21), Edward (trisomy 18), Patau (trisomy 13) and other chromosomal aneuploidy syndrome diagnoses or other autosomal recessive disorders (e.g. cystic fibrosis, thalassemia, Ashkenazi Jewish diseases) utilizing digital PCR.

Sequenom's Proprietary Noninvasive Prenatal Diagnostics

Sequenom's commercial opportunities in prenatal diagnostics are built upon its SEQureDxTM technology and are enabled by the pioneering inventions and associated intellectual property rights that it has exclusively licensed from Isis Innovation Ltd., the technology transfer company of the University of Oxford, as well as The Chinese University of Hong Kong. Sequenom's portfolio of noninvasive prenatal diagnostic patent rights and patent applications is platform-independent, includes genetic-analysis methods using circulating cell-free fetal nucleic acids from maternal samples, and also includes a portfolio of methylation and nucleic-acid markers. Sequenom is actively expanding its intellectual property position with new technology and new territories. Because Sequenom's license rights are platform-independent, the rights provide exclusivity (with the narrow exception in Europe for real time-PCR-based Rhesus D tests) for development and commercialization of noninvasive prenatal tests on any platform and are not limited to the Company's MassARRAY platform.

About The Chinese University of Hong Kong

Founded in 1963, The Chinese University of Hong Kong (CUHK) is a forward looking comprehensive research university with a global vision and a mission to combine tradition with modernity, and to bring together China and the West. CUHK teachers and students hail from all corners of the world. In 2007, CUHK had more than 6,100 staff members, approximately 10,000 undergraduate and 3,300 research postgraduate students. Of these students, some 2,500 are from 45 countries and regions outside Hong Kong. The University received research funding of close to HK$400 million in the 2006-07 academic year from various local and overseas sources. Four research areas led by CUHK staff have been selected as four of only ten Areas of Excellence funded by the University Grants Committee. CUHK research centres have close collaboration with mainland China and overseas institutions. Many research products have been put into practical use through technology transfer and spin-off companies. Technology transfer at CUHK is handled by the Technology Licensing Office headed by Ms. Alice Ngan.

About Sequenom

Sequenom is committed to providing the best genetic analysis products that translate the results of genomic science into solutions for noninvasive prenatal diagnostics, biomedical research, translational research and molecular medicine applications, and for research conducted in the agro (agricultural and livestock) industry. The Company's proprietary MassARRAY system is a high-performance (in speed, accuracy and cost efficiency) DNA analysis platform that quantitatively and precisely measures genetic target material and variations. The Company has exclusively licensed intellectual property rights for the development and commercialization of noninvasive prenatal genetic tests for use with the MassARRAY system and other platforms.

Sequenom®, SEQureDxTM and MassARRAY® are trademarks of Sequenom, Inc.


Except for the historical information contained herein, the matters set forth in this press release, including statements regarding the Company's plans to enter the noninvasive prenatal genetic diagnostic market, commercialization plans for the Company's proprietary noninvasive Trisomy 21 Down syndrome maternal blood test and other innovative prenatal diagnostic tests, and the Company's development and commercial opportunities in prenatal diagnostics, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the risks and uncertainties associated with demand for and market acceptance of Sequenom's products, services, and technologies, new technology and product development and commercialization particularly with respect to new technologies such as noninvasive prenatal molecular diagnostics, reliance upon the collaborative efforts of other parties, competition, government regulation, obtaining or maintaining regulatory approvals, and other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. These forward-looking statements are based on current information that is likely to change and speak only as of the date hereof. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Sequenom undertakes no obligation to revise or update any forward-looking statement to reflect events or circumstances after the issuance of this press release.



Contact:
Sequenom, Inc.
Paul W. Hawran
Chief Financial Officer
858-202-9000
or
Investor Relations Contact
Lippert/Heilshorn & Associates
Jody Cain, [email protected]
Kevin Mc Cabe, [email protected]
310-691-7100

--------------------------------------------------------------------------------
Source: Sequenom, Inc.

Update:

Although we stopped out of SQNM a few days back amid all the volatility and uncertainty that is happening, I am still keeping it on close watch for potential re-entry on any strength that may materialise.

They have an investors and analysts meeting On Sept 23rd which could well catalyse upside movement.

No trade plan, just watching for now.

Update:

Indeed SQNM released more positive results from their clinical trials of the downs syndrome test after hours yesterday. This news has spiked the price in pre market just under $25 (it closed less than $21 so a move of 20%+).

News link : http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20080923006573&newsLang=en

What a difficult situation, the way I see it is it has gapped into resistance (52 week high zone) and will perhaps struggle from here to breakout. Basically I see it pulling back into the gap it will create before breaking to new all time highs again (most gaps do fill).
Based on this thought process I am not comfortable entering at the prices that are appearing in pre market.  I prefer to wait and look for pullback / consolidation following todays reaction to the news.
This may be a bad decision as the market may run up and away past $25 today, we shall see.

Trade Plan:

On Watch