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Sequenom's Failure Highlights an Underappreciated Risk of Biotech Investing

Sequenom's late April announcement that the R&D data associated with its soon-to-be-launched test for Down syndrome "was mishandled by individuals in our company" sent a cold shiver throughout the biotech investment community. As if the biotech investment model wasn't risky enough, the firm had to go and introduce a new one.

As if the biotech investment model wasn’t risky enough, Sequenom Inc. had to come and introduce a new one.

The company’s April 29, 2009, announcement that the R&D data associated with its soon-to-be-launched test for Down syndrome "was mishandled...

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