Summary
Sequenom (NASDAQ:SQNM) is being investigated by the US Securities and Exchange Commission regarding its April 2009 announcement that R&D personnel mishandled data related to its molecular diagnostic test for Down's syndrome. Following the April announcement, several class action lawsuits were filed against the company. Recently, it was rumored that Sequenom along with other molecular diagnostic companies may be acquisition targets following LabCorp's (NYSE:LH) announced acquisition of Monogram Biosciences (NASDQ:MGRM).
Analysis
The fast paced molecular diagnostics market segment offers significant opportunities, which are often balanced by non obvious risks. Sequenom (NASDAQ:SQNM) is a case example. Over the past year, the stock has been as low as 2.86 and as high as 29.14, according to data provided by Yahoo Finance. Investors were optimistic regarding the planned June 2009 launch of Sequenom's Down syndrome test. That was until April of this year when Sequenom announced that data relating to the test was mishandled by four R&D employees. This disclosure resulted in a significant drop in Sequenom's stock price and subsequent class action lawsuits.
More recently, Sequenom along with other molecular diagnostic companies had been the focus of rumored acquisition speculation following LabCorp's (NYSE:LH) announced acquisition of Monogram Biosciences (NASDAQ:MGRM).
Now, Sequenom's disclosure of an investigation by the US Securities and Exchange Commission further clouds the company's future prospects and could add to continued investor uncertainty.
For more information on the companies mentioned above, the high growth molecular diagnostics segment and opportunities in the $50 billion global in vitro diagnostics market, please contact your GLG representative today and schedule an individual consult.
