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Sequenom climbs after analyst sees progress on reimbursements

Sequenom (SQNM) is climbing after Jefferies analyst Jon Wood upgraded the stock to Buy from Hold in a note to investors earlier today. Wood reported that Jefferies' survey suggests that the company is making progress in persuading more insurers to cover its prenatal Down Syndrome test, T21 LDT. Specifically, insurers covering 60% of the market covered by the firm's survey provided in-network coverage for T21 LDT. Moreover, the insurers are reimbursing the company at "more than acceptable levels," wrote Wood, who maintained a $7 price target on the shares. However, the analyst indicated that he believes the stock could rise significantly above $7. In early trading, Sequenom jumped 18c, or 5%, to $3.78.