CombiMatrix (NASDAQ:CBMX) is a derivative play on Sequenom (NASDAQ:SQNM) share gains in NIPT. The market reaction to the Quest agreements has been strong for Sequenom, moving the stock almost 20% this week. Clearly this rally in Sequenom indicates improved expectations which includes market share gains in the future. What is surprising is that CBMX has only rallied 4% on the news. Sequenom recommends CombiMatrix microarray analysis (branded NextView) for every positive screen outcome from MaterniT21. This happens in roughly 3% of the tests run.
CBMX looks to be gaining strength today on a mixed to down day. I've added to my position based upon the likelihood for improved guidance.
Disclosure: The author is long CBMX, SQNM.