Sequenom, Inc.: SQNM Stock Soars on LabCorp Bid

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Penny stock investors rejoice! One of your own broke through to the other side today, and that stock was Sequenom, Inc. (NASDAQ:SQNM), which is up a monstrous 180% after Laboratory Corp. of America Holdings (NYSE:LH) made a bid to acquire the life sciences company.

Sequenom, Inc.: SQNM Stock Soars on LabCorp (LH) BidThe details: LabCorp is acquiring Sequenom for $2.40 per share for a market value just north of $300 million, using an acquisition subsidiary, Savoy Acquisition Corp., to do so. Advisors in the deal include JP Morgan Chase, representing Sequenom, and Barclays, representing LabCorp.

For those unfamiliar with Sequenom, the company prides itself as a “pioneer” in non-invasive prenatal testing, and it wasn’t always trading in and out of penny stock levels. Zoom way out on the SQNM stock chart and you’ll see a stock that once traded hands for $420 per share.

Throughout its life, it has had its fair share of ups and downs (mostly downs); with SQNM stock making huge moves to the upside before diving back off the cliff.

Today’s move is the best-case scenario for SQNM stock holders.

President and CEO of Sequenom Dirk van den Boom released this statement:

“Over the last nine months, Sequenom has vastly enhanced its technology, operations, and business prospects. The opportunities this transaction presents are significant and important both for our reproductive health business as well as our liquid biopsy strategy. Becoming part of LabCorp helps Sequenom reach a much broader market for our innovative testing.”

What LabCorp Wants From SQNM

While the SQNM stock price shot through the roof, LH stock saw an initial pop before fizzling out and trading basically flat. That pop came on the strength of LabCorp’s second-quarter earnings beat on both the top and bottom lines. Where analysts expected sales of $2.3 billion and per-share earnings of $2.30, LH delivered revenues of $2.4 billion and earnings-per-share of $2.31.

According to LabCorp CEO David King:

“Our results reflect our customers’ growing enthusiasm for our differentiated offering as we improve health and improve lives around the globe by delivering world class diagnostics, bringing innovative medicines to patients faster and changing the way care is provided.”

While Sequenom’s 2015 revenue of $130 million hardly registers a blip in the $8.6 billion LabCorp brought in last year, LabCorp now has bought itself the market leader in NIPT and genetic testing. That, coupled with LabCorp’s own “extensive” offerings, could make LH a one-stop women’s health shop both domestically and abroad.

As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/07/sqnm-stock-price-sequenom-inc-labcorp-lh-bid/.

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