Auriga Securities on Sequenom (SQNM): Coventry (CVH) Giveth, Coventry Taketh Away
Tweet
Share
E-mailGet Alerts SQNM Hot Sheet
Price: $2.39 --0%
Rating Summary:
3 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
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.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Viking Holdings (VIK) PT Raised to $82 at Mizuho
- DA Davidson Starts Everus (ECG) at Buy
- Cummins (CMI) PT Lowered to $675 at Jefferies
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
AurigaSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
