Auriga Securities on Sequenom (SQNM): Coventry (CVH) Giveth, Coventry Taketh Away
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Price: $4.10 -0.24%
Rating Summary:
11 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
11 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade SQNM Now!
Auriga Securities on Sequenom (SQNM): Coventry (CVH) Giveth, Coventry Taketh Away
Yesterday, Sequenom (Nasdaq: SQNM)(Buy) announced Coventry Health Care (NYSE: CVH)(Not Rated) terminated the national contract signed on May 9. According to CVH, SQNM used the self-nomination process to submit a request for a coverage decision. SQNM was approved and signed a typical contract. However, under the terms of the contract CVH has 90 days to review the contract and decide whether or not to include the test in its national coverage plans. Upon further review, CVH decided not to include SQNM's test in the national plan and informed SQNM of its decision. CVH stressed the decision was not driven by any clinical issues with the test. Under normal circumstances this process is usually not made public, however since it was material to SQNM, CVH allowed the company to issue a press release but unfortunately did not take into account the 90-day waiting period. Clearly this announcement is a near term setback and creates uncertainty surrounding reimbursement time lines. However, the solid uptake trajectory, solid clinical data, improving clinical utility and high level of awareness among clinicians should help mitigate these concerns.
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Yesterday, Sequenom (Nasdaq: SQNM)(Buy) announced Coventry Health Care (NYSE: CVH)(Not Rated) terminated the national contract signed on May 9. According to CVH, SQNM used the self-nomination process to submit a request for a coverage decision. SQNM was approved and signed a typical contract. However, under the terms of the contract CVH has 90 days to review the contract and decide whether or not to include the test in its national coverage plans. Upon further review, CVH decided not to include SQNM's test in the national plan and informed SQNM of its decision. CVH stressed the decision was not driven by any clinical issues with the test. Under normal circumstances this process is usually not made public, however since it was material to SQNM, CVH allowed the company to issue a press release but unfortunately did not take into account the 90-day waiting period. Clearly this announcement is a near term setback and creates uncertainty surrounding reimbursement time lines. However, the solid uptake trajectory, solid clinical data, improving clinical utility and high level of awareness among clinicians should help mitigate these concerns.
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