Sequenom Settles SensiGen Claims

San Diego-based Sequenom (NASDAQ: SQNM) disclosed in a regulatory filing it has issued 367,547 additional shares of its common stock, valued at $1.5 million, to settle claims stemming from its acquisition of Ann Arbor, MI-based SensiGen’s molecular diagnostic tests. Sequenom and SensiGen said last January the San Diego biotech was buying a variety of diagnostic tests from privately held SensiGen in a stock-and-cash deal valued at $8.7 million. The SensiGen principals who received an aggregate 71,836 shares as part of that deal notified Sequenom in July that they had suffered about $1.3 million in damages, based on Sequenom’s breached representations and warranties. Sequenom said a few months earlier that it had mishandled data from clinical trials for its non-invasive test for Down syndrome, a revelation that has triggered at least two federal investigations.

Bruce V. Bigelow was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Follow @bvbigelow

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