Wedbush: Sequenom Has No Room for Missteps

In a research report published today by Wedbush, there are uncertainties surrounding Sequenom Inc.

related to the adoption curve, cost structure, complex competitive landscape and regulatory environment that leave no room for missteps. Wedbush commented in the report, “We believe shares currently price in 10%-30% US market share at roughly $1,500 per test which makes for unattractive risk reward in our view. Our $3 price target assumes $19 MM in 2012 T21 revenue and a 10x MaterniT21 diagnostics revenue multiple plus 1x (fair given the slow growth) our 2012 life science sales projection plus $25 MM for the diagnostics IP (consistent with prenatal IP deals) assuming $6 2MM cash & 120 MM shares.” Wedbush maintains its Underperform rating and $3 PT on Sequenom, which is currently trading at $3.96.