Summary
Sequenom's (NASDAQ: SQNM) plans to delay the launch of its molecular diagnostic test for Down's syndrome due to a mishandling of data by an employee. The 70% plunge in its shares highlights the need to understand both the risks and opportunities associated with emerging diagnostic companies.
Analysis
The $50 billion dollar global diagnostic industry offers significant opportunity for growth investors. According to leading reports, approximately 75% of all clinical decisions are based on a diagnostic test result.
Sequenom (NASDAQ: SQNM) announced today that it will delay the launch of its Down's syndrome molecular diagnostic test, originally schedule for a June 2009 launch. The delay is due to a mishandling of data by a Sequenom employee, according to the company. The 70% plunge in its shares highlights the need to understand both the risks and opportunities associated with emerging diagnostic companies.
There are significant growth opportunities in clinical diagnostics, especially in the high growth molecular diagnostics and point of care market segments. Consolidation also continues, as evidenced by Beckman Coulter's (NYSE: BEC) recent acquisition of Olympus Diagnostics.
For more information on the $50 billion global in vitro diagnostics market, high growth segments and emerging diagnostic companies, please contact your GLG representative and schedule and individual consult today.
