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Sequenom shares up on Down Syndrome test chatter

http://biomedreports.com/articles/most-popular/7415-sqnm-shares-flying-on-down-syndrome-test-chatter.html

31.08.2009 19:09
http://www.finanznachrichten.de/nachrichten-2009-08/14827018-sequenom-shares-up-on-down-syndrome-test-chatter-020.htm

By Shailesh Kuber and Doris Frankel

BANGALORE/CHICAGO, Aug 31 (Reuters) - Shares of Sequenom Inc rose as much as 17 percent amid speculation that the company's prenatal Down Syndrome test may yield favorable results.

'There is chatter about possible news regarding favorable results from a medical study that might benefit the company,' said Frederic Ruffy, options strategist at Web information site WhatsTrading.com.

'Traders appear to be looking for more upside in shares and are buying September $6 and $7.50 calls,' he added.

In April, the company delayed the launch of the SEQureDx test, citing mishandling of research and development test data and results by employees, and had initiated an independent investigation into the matter.

In morning trade, about 25,000 call options traded in the name, more than two times its normal daily volume and nearly 11 times the number of its put options, according to option analytics firm Trade Alert.

Investors often turn to equity call options -- granting the right to buy the company's shares at a fixed price within a specified time period -- to speculate on potential share price appreciation.

An equity put option conveys the right to sell the stock at a given price and time.

Auriga USA analyst Raj Mehra said there were rumors in the market about positive data from the study on the company's Down Syndrome test.

Shares of the company were up 79 cents at $6.06 in afternoon trade. They rose as much as $6.19 earlier in the session.

(Editing by Maju Samuel) Keywords: SEQUENOM/SHARES

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