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Sequenom, Inc. Reports Financial Results For The Third Quarter Of 2013
Date:11/7/2013

f 2013. Approximately 38,600 of those patient samples tested during the third quarter were MaterniT21™ PLUS laboratory-developed test (LDT) samples, compared to approximately 38,000 in the second quarter of 2013, growing 2% sequentially as the laboratory increased its focus on tests with acceptable reimbursement. In the third quarter, Sequenom Laboratories implemented a program to reduce the volume of uncompensated Medicaid tests, while continuing to work with state agencies to obtain reimbursement for its tests. As a percentage of the total of MaterniT21 PLUS tests accessioned, Medicaid tests declined from 26% in the second quarter to 21% in the third quarter, with the trend declining to 17% in September.

Collections for diagnostics services improved in the third quarter 2013 compared to the second quarter, with a sequential increase in revenue of 36%. Revenues for services performed in the current quarter improved, and revenues collected for services performed in prior periods improved in the third quarter 2013 compared to the prior quarter. Following is a summary of diagnostic services revenues for the past five quarters:(in millions)Q32012Q42012Q12013Q22013Q32013Collections and revenue recorded for services in the quarter

$8.7

$9.5

$10.2

$12.0

$15.0Collections for services in prior quarters

3.8

11.5

18.9

12.5

18.3Diagnostic services revenues

$12.5

$21.0

$29.1

$24.5

$33.3With further experience with its in-house billing system and implementation of coding changes by third-party payors, collections by Sequenom Laboratories improved, particularly for services performed in prior periods. However, along with many other laboratories in the diagnostics industry, Sequenom Laboratories continued to experience delays in receipt of payments from third-party payors. The molecular diagnostics coding changes adopted by CMS, Medica
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SOURCE Sequenom, Inc.
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