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Sequenom: Workers Sold Stock Before News Disclosure

By Thomas Gryta, Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Sequenom Inc. (SQNM) acknowledged that three employees, including a former officer, sold company stock before the price plunged when Sequenom disclosed it had "mishandled data" from its noninvasive prenatal Down syndrome test.

In September, the San Diego diagnostics company fired its chief executive and head of research, among other steps, in an attempt to move forward from the issue.

The company previously said that none of the officers who left the company in September financially benefitted by selling shares, but on a conference call Monday said that an officer who resigned at the time sold stock to "make a down payment on a house."

In September, that officer was revealed to be Steven Owings, who oversaw commercial development in prenatal diagnostics.

As reported, Owings exercised options and sold shares in Sequenom that netted him almost $300,000 in late March, about a month before the data disclosures. The sales were the largest by a Sequenom executive since 2002.

On the day after the news, the stock plunged 76% to $3.62, from $14.91.

Sequenom said Monday that the sale was properly and timely reported to the U.S. Securities and Exchange Commission, and that two other lower-level employees, who were fired in September, also sold stock.

Company officials weren't immediately available to comment further on the disclosures.

In the wake of its own investigation, Sequenom has been contacted by the Federal Bureau of Investigation, U.S. Attorney's office, Nasdaq and the enforcement staff of the SEC.

Sequenom's stock recently traded down 7% to $3.05 in after-hours trading, and is down 83% for year as of Monday's close.

-By Thomas Gryta, Dow Jones Newswires; 212-416-2169; thomas.gryta@dowjones.com

  (END) Dow Jones Newswires
  11-09-091805ET
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