Sequenom announced today that it has entered into a definitive agreement with the UnitedHealthcare insurance group. As a result, SQNM is climbing in the market today. Today, we’ll talk about the details of the agreement, how the stock reacted to the news, and what we can expect to see moving forward. So, let’s get right to it…
Details Of The Agreement
Earlier this morning, Sequenom announced that it has signed an agreement with UnitedHealthcare effective nationally starting October 1, 2015 which will cover 43 million people thoughout the United States. The new agreement is for UnitedHealthcare to provide the MaterniT21 PlUS, HerediT CF Carrier Screen, and HerediT UNIVERSAL Carrier Screen laboratory-developed tests to patients. This is big news for Sequenom Laboratories’ diagnostic services as it brings the number of covered patients under agreement to more than 200 million.
How The Stock Reacted To The Agreement
As mentioned above, Sequenom is having an incredible day in the market following the news. After all, this is just about guaranteed revenue for the company. Currently (11:52), SQNM is trading at $2.34 per share after a gain of 13.04% so far today.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see overwhelmingly positive news from Sequenom. The reality is that the company has entered into an agreement that’s likely to drive quite a bit of revenue through their laboratory services. With covered lives reaching more than 200 million as the result of the agreement, it’s hard to imagine that we would see any long term declines out of the company any time soon.
What Do You Think?
Where do you think SQNM is headed and why? Let us know in the comments below.
[Image Courtesy of Sequenom]