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
Copyright (c) 2009 Dow Jones & Company, Inc.
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