Sequenom Enters Into Licensing Deal With Mayo Medical Laboratories

Sequenom, the San Diego-based laboratory, has entered into a license deal with Mayo Medical Laboratories for patents on its prenatal tests and applications. The Minnesota-based Mayo Medical Laboratories is part of the Mayo Clinic. It performs about 20 million assays a year for more than 4,000 hospitals worldwide. Sequenom’s primary product is the MaterniT21 PLUS assay, a blood test that combs cell-free fetal DNA for potential abnormalities. It is typically used for pregnant women over the age of 35 who are at risk for giving birth to children with chromosomal abnormalities and is considered a safer alternative to amniocentesis. The test is covered by most major commercial insurers, as well as Medicaid programs in 15 states. Quest Diagnostics also recently came to terms with Sequenom on a distribution agreement, suggesting the company will use such deals to drive revenue growth beyond its own capacity to market the test. Sequenom also has finished developing another test, VisibiliT, which would replace conventional prenatal serum screen testing. It is expected to be commercially available later this month. “We have great appreciation for Mayo Clinic’s commitment to research, innovation, and patient care, and we welcome the opportunity to partner with the organization’s leading clinical research laboratory to expand patient access to this revolutionary technology,” said William Welch, chief executive officer of Sequenom Inc. Financial terms of the deal were not disclosed. Takeaway: Sequenom may enjoy more revenue growth in the future by licensing its testing technology