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SEQUENOM (SQNM): Does Anyone Really Believe That Missing Analysts Expectations By Five Cents Should Cause a Sell-Off In A Fundamentally Sound Development-Stage Biotechnology Firm’s Shares?

To those who keep downgrading Sequenom we say, we would love to be your disciples on condition that you do not try to convince us that development-stage firms deserve to be downgraded and their stocks crushed because their quarterly reports show a loss of five cents more than analysts’ expectations. We will become your faithful followers if you tell us in straight sentences that the firm’s scientific fundamentals are dismal – its technologies are not working, its programs are not advancing and its future is bleak, which you certainly did not do yet.

We will do exactly what you recommend if you tell us something more convincing than the story of the five cents. Here is some help:

A few months ago, Sequenom launched SensiGene™ Cystic Fibrosis (CF) Carrier Screening test.

- Do you believe the test has been launched?
- Do you believe the test is not working? If so, then explain why
- Will the test not sell? If so, why?

In Sequenom’s non-invasive nuclear prenatal program, the firm has launched SensiGene Fetal RHD Genotyping test, which was its first clinical laboratory test to be accomplished through its SEQureDx™ technology.

- Do you believe the test has been launched?
- If so, then do you believe the test is superfluous? If so, then could you please explain why do you think so?

In the same prenatal program, Sequenom has launched another test, the non-invasive SensiGene™ Fetal (XY) (Fetal Sex Determination) test, which is also powered by SEQureDx™ technology.

Again we ask: Do you believe the firm has launched this test? Do you believe it is safe, accurate and highly specific and has the same accuracy reading the fetus sex early in pregnancy? If not, please explain.

Do you believe that the test enabled the distinction between maternal and fetal DNA for both male and female fetuses? If so, then do you believe that the test validates the firm’s technologies behind the non-invasive prenatal test program?

Yes, we are ready to follow your negative recommendation about this biotech firm, but first, please tell us what you know and think about Sequenom’s MassARRAY® genotyping system? Do you like it? Do you believe that this system and other few similar systems are making a historical move into the clinical laboratory?

Did you know that by using Sequenom MassARRAY® genotyping, Children’s Hospital Oakland Research Institute and the University of Minnesota Cancer Center were able to find out that donors who have natural killer cell immunoglobulin-like receptor (KIR) haplotypes, would significantly improve treatment in patients with acute myelogenous leukemia (AML) who received hematopoietic cell transplantation (HCT) therapy. As a matter of fact, the AML patients who received T-replete hematopoietic cell transplantation therapy1 based on Sequenom MassARRAY® genotyping had significant survival benefit.

1. The complete results from the study are published in Blood (Volume 113, Number 3), the journal of the American Society of Hematology.

If you still believe that the five cent story that ate over 25% of SQNM’s price in two days based on your preaching is more important than the above story, then here is another story: Using an assay exclusively licensed from Sequenom, researchers published a study by the University of Michigan, which demonstrates that around 15% of women determined to be negative human papillomavirus (HPV) in the cervix with the standard HPV DNA test may actually be infected with the virus. Sequenom assay was able to detect the presence of high-risk HPV in 46.7% of women who tested negative by the commonly used Hybrid Capture 2 (HC2) test.

WOW.

You know what? Those who continue to believe that the missed five cents in the quarterly results of a firm that is still building its programs cannot be but irrational. You know how we know? Because the missed five cents are spent on the firm’s programs. Development-stage firms have to spend on building their programs before they cash in on them. By the way, the aforementioned test is another example of how the genomic knowledge is entering the clinic through new advanced DNA sequencers. In the meantime, it further validates Sequenom’s technology.

Sequenom is in the process of researching and evaluating a potential molecular diagnostic for the assessment of risk in developing age-related macular degeneration (AMD).

With regard to the T21 (Down syndrome) test, Sequenom said it is committed to the development of the noninvasive T21 test.

Prohost Word: Until the bearish on Sequenom convince us that they are not playing a game, and their concerns about Sequenom’s science, technology and products are real, we continue to believe that the future of medicine and agriculture is now in the hands of the genomic group. Sequenom is, indeed, a member of this group with advanced standing. The genomic firms’ technologies, tools and discoveries are the engines of the revolution in medicine and in the discovery and development of breakthrough drugs. (Read the article entitled Genomics in Prohost Newsletter for subscribers only.)

Disclosure: Long SQNM

Source: Sequenom: Missing Analysts' Expectations by Five Cents Caused a Sell-Off?