When you're right, your shares are right, too.
The company said it tested another 219 samples with its noninvasive prenatal Down syndrome test and got the same results as it did with the first 201 samples: 100% accuracy, no false positives (saying Down syndrome is present when it isn't), and no false negatives (saying there isn't Down syndrome when there is). You just can't get any better than that.
And the results look especially good when you consider that the currently available tests can identify only 70% to 90% of samples and carry a false-positive rate of up to 5%.
Sequenom still hasn't tested enough samples to release the product, though. It expects to test 3,000 to 5,000 samples in all before the expected launch in the middle of next year. But the new data should give investors confidence that the early results weren't a fluke. I know I'm impressed.
Sequenom also announced yesterday that it had acquired the Center for Molecular Medicine, a Clinical Laboratory Improvement Act (CLIA)-certified clinical diagnostics laboratory. It paid just $4 million for the lab, of which 90% will be paid for in the company's (now more valuable) stock. It's also setting up collaborations with the two nonprofits that used to own the lab. The CLIA-certified lab and another one that Sequenom is building in its hometown of San Diego are necessary for the company to begin testing clinical samples.
Other companies, such as Affymetrix
It still has some time before it'll be profitable, but Sequenom might be well on its way to becoming the next ultimate growth stock.
Affymetrix is a current Motley Fool Rule Breakers pick, and Myraid Genetics is a former one. The newsletter service is always on the hunt for cutting-edge picks. See all of our latest discoveries with a free 30-day trial subscription.