Dallas, Texas 11/11/2013 (Financialstrend) – Biotech firm Sequenom Inc. (NASDAQ:SQNM) stock was featured in the top 10 gainers list on NASDAQ during trading on November 8. It took the fourth position on the list with its share price registering a whopping 24.12% increase in its market value in just one day of trading. The huge jump in its market value coupled with a 4 times increase in its daily transaction volume was accomplished on the back of strong 3Q results that the drug firm announced on November 7.
The big vote of confidence in the stock by investors was propelled by a significant bridging of the gap between its accumulated loss and the substantive increase in its revenue from operations in the third quarter in comparison to 2Q.
The upturn in its third quarter operations was being ascribed to increased revenue from its testing business followed by bring in operational efficiencies in the form of reduction in non revenue yielding testing procedures. The firm has been a pioneer in significantly improving testing procedure which will allow the firm to red flag expecting moms whose foetus has high chance of suffering from Down’s syndrome. The differentiator for the firm is that it tests of more than 38000 in third quarter have been able to detect the ailing foetus in pregnant women who are just entering their 10 week of pregnancy.
Thanks to the improving cash flow situation primarily due to increase in its revenue, the company was able to bring down its net losses to $28.1 million for the quarter which was close to $2 million less than the $30.2 million loss it had posted in 3Q12. The shrinkage in loss was directly related to the doubling of quarterly revenue to $44 million in 3Q in comparison to $23 million in 3Q12. On the results announcement, the stock took off 24% to end trading day on November 8 at $2.11 per share.