<table><tr><th>From:</th><th>Boris Nikolic &lt;</th></tr><tr><td>Sent:</td><td>Monday, August 4, 2014 9:55 PM</td></tr><tr><td>To:</td><td>Jeffrey Epstein (jeevacation@gmail.com)</td></tr><tr><td>Subject:</td><td>you asked about FMI</td></tr></table>

See article below and a table.

The entire sector is down.

A smaller companies and recent IPOs got it much wors=

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By <= href="mailto:dailynews@genomeweb.com"> a GenomeWeb staff reporter <=span>

NEW YORK (GenomeWeb)— In July the stocks of com=anies operating in the omics research tools and molecular diagnostics spac=s returned almost all of their gains from June <http://www.genomeweb.com/omics-mdx-stocks-rise-5- percent-june-le=-exact-sciences-sequenom-pacbio-and-genm> as the GenomeWeb Daily News Index droppe= 5 percent month over month.

In all, 25 of the 29 companies in the Index saw their =tock prices fall in July, with Pacific Biosciences (-26 percent), Cepheid =-21percent), and GenMark Diagnostics (-21 percent) seeing the steepest de=lines. The biggest gainer during the month was Luminex, whose shares increased 6 percent.

The GWDN Index's decline outpaced losses in t=e broader markets. The Dow Jones Industrial Average was down 2 percent mon=h over month, while the Nasdaq decreased a fraction of 1 percent, and the =asdaq Biotech Index dipped 2 percent.

PacBio's drop follows a gain of nearly 25 percent in J=ne and was in spite of a reported 89 percent increase in revenues <http://www.genomeweb.com/sequencing/pacific-biosciences-q2-reven=es-climb-89-percent> for the second quarter. While the resul=s met the consensus analysts' estimate on the top line and exceeded expect=tions on the bottom line, its instrument bookings in the quarter fell shor= of expectations, leading to a 14 percent decrease in its share price the day after it released its Q2 fi=ancial results.

Cepheid's drop also came in spite of a sharp increase =n its Q2 revenues, which were up 21percent <http://www.genomeweb.com/clinical-genomics/cepheid-reports-21-pe=cent-uptick-q2-revenues> year over year. Additionally, Wells Fargo initiated coverage of Cepheid with an Outperform rating. However, mid-m=nth, Roche sued chttp://www.genomeweb.com/persample-prep/roche-files-patent-infri=gement-suit-against-cepheid-over-us-sales-tb-test> the company alleging infringement of its patents covering PCR-base= technologies. In the two days following the filing of the lawsuit, Cephei='s stock dropped 11percent and has continued declining since.<=span>

Some Wall Street analysts also expressed caution on th= company's shares after the release of its Q2 results. Although Cepheid be=t the consensus estimates on the top and bottom lines, it lowered its EPS =uidance for full-year 2014. Canaccord Genuity's Mark Massaro, for example, lowered his price target on the compa=y's shares to $58 from $62, noting that "the company guided to a ligh= Q3 and announced it is pushing forward its R&D spend to advance its t=st menu in oncology testing (breast, leukemia, bladder)."

GenMark's share-price drop came without any obvious ca=alysts, just as its 23 percent increase in share price in June had no appa=ent drivers. Its stock steadily fell throughout July, and even a pre-announcement that its Q2 base revenues are anticipated to be up 71=percent year over year, has had only a limited effect on its stock price.

The company also pushed back the completion date of it= molecular diagnostics platform called ePlex (formerly called NexGen) to t=e end of 2014. The system was originally set to be completed by April 2014=and then was pushed back to the end of the summer. Some analysts have remained bullish on the company despite =he delay.

Nicholas Jansen of Raymond James Equity reiterated an =utperform rating for the company and said, "(OJur thesis remains unch=nged and we expect revenue growth to inflect in 2016, the first full year =f the launch of the new platform. That said, we acknowledge that this minor delay could be a source of investor f=ustration; although, the strong 2O report could provide some level of buff=r."