UPDATE: Piper Jaffray Upgrades Sequenom to Overweight on Reimbursement Momentum
Piper Jaffray upgraded Sequenom (NASDAQ: SQNM) from Neutral to Overweight and raised the price target from $5.00 to $6.50.
Piper Jaffray noted, "Our private payer checks reveal increasing traction on the reimbursement front for MaterniT21, with Aetna, Humana, several BCBSs and others issuing favorable coverage decisions. All in, we found ~90M lives currently covered for Sequenom's MaterniT21. Based on these results, we believe reimbursement momentum has shifted in Sequenom's favor. We are adjusting our F2013 MaterniT21 test accession expectations upward to 151K (was 129K). The SQNM bear case centers on competition/pricing concerns, but we believe the company's first mover advantage and its' large and expanding direct sales force (75 reps) create a sustainable advantage."
Sequenom closed at $4.11 on Thursday.
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