Infant diagnostic test provider Seqenom (SQNM) is retreating after one of its suppliers bought one of its competitors. Illumina (ILMN), which supplies gene mapping and sequencing products to Sequenom, announced earlier today that it had agreed to buy another infant diagnostic test provider, Verinata. The contract between Sequenom and Illumina expires in 2016. Meanwhile, Sequenom reported that its 2012 revenue would be about $89M, above the analysts' consensus estimate of $85.28M. In a note to investors earlier today, Piper analyst William Quirk wrote that Sequenom's 2012 revenue guidance was positive. The analyst increased his estimates for the company, but is concerned about the amount of spending it must undertake in order to gain market share. Sequenom's acquisition of Illumina will exacerbate this concern, Quirk indicated. In early trading, Sequenom fell 8c, or 1.53%, to $5.15.