SAN DIEGO, July 24, 2013 /PRNewswire/ -- Sequenom, Inc. (NASDAQ: SQNM), a life sciences company providing innovative genetic analysis solutions, today reported total revenues of $34.9 million for the second quarter of 2013, an increase of 91% compared to revenues of $18.3 million for the second quarter of 2012.
Revenues from the Sequenom CMM diagnostics services operating segment were $24.5 million in the second quarter of 2013, up from $8.1 million in the prior year period. For the second quarter 2013, diagnostic revenues accounted for 70% of total revenues, versus 76% in the first quarter of 2013. Revenues from the Sequenom CMM diagnostics services operating segment are recorded primarily on a cash basis.
Along with many other companies in the diagnostics industry, Sequenom CMM experienced delays in receipt of payments as a result of molecular diagnostics coding changes adopted by CMS, Medicaid and third party payors. These changes include the elimination and replacement of certain molecular diagnostics billing codes. Several payors are requesting additional information to process claims for services, and certain payors, including most state Medicaid plans, have not implemented the new codes, or in some cases are no longer providing coverage for certain tests. In addition to the impact of these coding changes, Sequenom CMM transitioned from an out-sourced billing provider to an in-house billing system during the quarter, and lower than expected collections by the external billing provider also contributed to the decline in diagnostic revenues.
Approximately 50% of diagnostic revenues reported for the second quarter 2013 are attributable to tests performed in the same period. Second quarter 2013 revenues from the genetic analysis operating segment of $10.3 million increased 2% as compared to the same period in 2012, at $10.1 mill
|SOURCE Sequenom, Inc.|
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