Jeff Smith noon, Nov. 24
Sequenom Stock Back on Roller Coaster
Stock of biotech Sequenom resumes riding a roller coaster. Yesterday (Oct. 17) the company said its prenatal test for Down syndrome will be marketed in 20 American cities. The stock rose to $5.56 from its Friday closing of $5.03. But today the stock is being hammered back down to $5.10. Two years ago, the test was delayed because employees manipulated research data. The stock plunged more than 75% on the news. Subsequently, Elizabeth Dragon, former senior vice president of research and development, pleaded guilty to conspiracy to commit securities fraud by lying to investors, claiming the test was 100% accurate. Now, according to Bloomberg News, Sequenom is saying the test is 99.1% accurate as early as 10 weeks into pregnancy in detecting a chromosomal abnormality associated with Down syndrome.