Barclays Reiterates an 'Overweight' on Sequenom (SQNM); Management Meeting Takeaways
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Price: $2.39 --0%
Rating Summary:
3 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 23
Rating Summary:
3 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 23
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Barclays reiterates an 'Overweight' on Sequenom (NASDAQ: SQNM) price target of $9.00.
Barclays analyst says, "We were recently on the road with SQNM management, including Ron Lindsay (EVP, R&D), Paul Maier (CFO) and Marcy Graham (IR). The company is on track to launch its T21 test, and while we may see a modest initial ramp, due to spotty reimbursement, we believe the eventual market opportunity is attractive. Quality of data from the validation study is a key near term catalyst, we reiterate our rating."
"Commercial ramp-up: A 20-strong sales force is in place for launch. The test will be offered out of SQNM's San Diego CLIA lab, with initial capacity of 100K tests/year. The company had $114M in cash as of Q2, plus a $30M credit line available for capex and working capital needs. Cash burn is expected to accelerate in 2H (~$22M in 1H). We expect SQNM to raise additional capital next year, post T21 launch, in order to ramp capacity and maintain operational flexibility."
For more ratings news on Sequenom click here and for the rating history of Sequenom click here.
Shares of Sequenom closed at $5.39 yesterday.
Barclays analyst says, "We were recently on the road with SQNM management, including Ron Lindsay (EVP, R&D), Paul Maier (CFO) and Marcy Graham (IR). The company is on track to launch its T21 test, and while we may see a modest initial ramp, due to spotty reimbursement, we believe the eventual market opportunity is attractive. Quality of data from the validation study is a key near term catalyst, we reiterate our rating."
"Commercial ramp-up: A 20-strong sales force is in place for launch. The test will be offered out of SQNM's San Diego CLIA lab, with initial capacity of 100K tests/year. The company had $114M in cash as of Q2, plus a $30M credit line available for capex and working capital needs. Cash burn is expected to accelerate in 2H (~$22M in 1H). We expect SQNM to raise additional capital next year, post T21 launch, in order to ramp capacity and maintain operational flexibility."
For more ratings news on Sequenom click here and for the rating history of Sequenom click here.
Shares of Sequenom closed at $5.39 yesterday.
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