Here's Why Sequenom Surged 20% After Tuesday's Market Close

Shares of Sequenom, Inc. SQNM, a life sciences company that provides patient management information, surged higher by more than 20 percent during Tuesday's after-hours trading session.

Sequenom announced after Tuesday's market close that it has entered into a new agreement with Anthem Blue Cross and Blue Shield plans for the states of Georgia, Indiana, Kentucky, Missouri, Ohio, Virginia and Wisconsin.

As part of the new agreement, Sequenom will provide in-network coverage for Sequenom Laboratories, a noninvasive prenatal tests for both high and average-risk pregnancies to Anthem's members in those states.

"Becoming an in-network provider with leading health insurers, particularly for average risk pregnancies, is a critical component of our commercialization plan," said Dirk van den Boom, Ph.D., president and CEO of Sequenom. "The addition of these seven states to our Anthem Blue Cross and Blue Shield relationship represents meaningful progress in our efforts to bring the benefits of noninvasive prenatal testing to women throughout the United States."