Sequenom Shares Popped: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Sequenom (NAS: SQNM) have popped by as much as 14% today on news that the company has launched its new Down syndrome prenatal test.

So what: The test will be available in 20 different U.S. cities today, two years after a previous attempt to bring it to market experienced a set back due to employees mishandling sensitive research data. A clinical validation study showed that the blood test is able to detect 99.1% of all positive cases of Trisomy 21, the genetic defect that commonly causes Down syndrome.

Now what: Sequenom utilizes a blood test from a pregnant woman, compared to the current method of amniocentesis, inserting a needle into the uterus to sample amniotic fluid. Amniocentesis carries the risk of miscarriage and the new test can reduce procedure-related losses by up to 96% while also boasting high accuracy. Sequenom is targeting 750,000 tests in the U.S. annually.

Interested in more info on Sequenom? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners