Invitae Completes Selected Assets Sale of its Next Generation Sequencing (NGS) research assays to Integrated DNA Technologies, Inc.

Rhea-AI Summary

Invitae (NYSE: NVTA) has completed a strategic transaction with Integrated DNA Technologies (IDT), selling its Next Generation Sequencing (NGS) research assays for approximately $48 million. This move is aimed to enhance Invitae's cash runway and focus on precision oncology lab developed tests (LDT). The agreement includes a supply partnership to bolster Invitae Personalized Cancer Monitoring (PCM) services. Invitae's AMP™ technology will remain with the company, supporting its core genetic testing business.

Positive

• Transaction valued at approximately $48 million, enhancing cash position.
• Strategic focus on precision oncology LDT services expected to fuel profitable growth.
• Supply agreement with IDT supports growth of Invitae Personalized Cancer Monitoring (PCM) services.

Negative

• None.

— Invitae will continue to invest in its precision oncology focused lab developed test (LDT) offerings — 
— The transaction contributes to Invitae's cash runway and includes a strategic supply partnership to support the growth of Invitae Personalized Cancer Monitoring™ (PCM) services —

SAN FRANCISCO, Dec. 20, 2022 /PRNewswire/ -- Invitae (NYSE: NVTA), a leading medical genetics company, today announced that it has completed a transaction with Integrated DNA Technologies, Inc. (IDT), which includes the sale of Next Generation Sequencing (NGS) research assays under the trademarked name Archer^®, also known as the Research Use Only (RUO) kitted solutions. The transaction also includes certain licensed rights to Invitae's Anchored Multiplex PCR (AMP™) technology. The transaction value includes total cash consideration of approximately $48 million, subject to certain adjustments. As part of the transaction, Invitae also entered into a supply agreement with IDT to support Invitae's PCM services.

This divestiture is part of Invitae's portfolio optimization efforts and renewed strategic focus to achieve profitable growth in its core genetic testing business, fueling the pursuit of the significant market opportunities of its precision oncology LDT services. This transaction is expected to add to Invitae's cash position, contribute to the company's commitment to reduce cash burn and extend its cash runway.

"Today is the next step in executing our business realignment strategy and we're pleased to complete this transaction with IDT. Many of our talented employees are transferring to IDT immediately, and we expect a seamless transition for the customers that rely on the RUO kitted solutions," said Ken Knight, president and chief executive officer of Invitae. "AMP™ technology, the foundation for our precision oncology services, including related patents and proprietary know-how, will remain with Invitae, and we're looking forward to serving patients, physicians and biopharma partners with these emerging offerings."

About Invitae
Invitae Corporation (NYSE: NVTA) is a leading medical genetics company whose mission is to bring comprehensive genetic information into mainstream medicine to improve healthcare for billions of people. Invitae's goal is to aggregate the world's genetic tests into a single service with higher quality, faster turnaround time, and lower prices. For more information, visit the company's website at invitae.com.

Disclaimer 
RUO — For research use only. Not for use in diagnostic procedures. Unless otherwise agreed to in writing, IDT does not intend these products to be used in clinical applications and does not warrant their fitness or suitability for any clinical diagnostic use. Purchaser is solely responsible for all decisions regarding the use of these products and any associated regulatory or legal obligations.

Safe Harbor Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the company's business plans and strategy; the anticipated benefits of the transaction; the company's expectation that customers will experience a seamless transition in the transaction; and the company's expectations regarding its precision oncology services. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: the ability of the company to successfully execute its strategic business realignment and achieve the intended benefits thereof; the impact of COVID-19 on the company, and the effectiveness of the efforts it has taken or may take in the future in response thereto; the impact of inflation and the economic environment on the company's business; the company's ability to grow its business in a cost-effective manner; the company's history of losses; the company's ability to compete; the company's failure to manage growth effectively; the company's need to scale its infrastructure in advance of demand for its tests and to increase demand for its tests; the risk that the company may not obtain or maintain sufficient levels of reimbursement for its tests; the ability of the company to obtain regulatory approval for its tests; the company's failure to successfully integrate or fully realize the anticipated benefits of acquired businesses; risks associated with litigation; the company's ability to use rapidly changing genetic data to interpret test results accurately and consistently; laws and regulations applicable to the company's business; and the other risks set forth in the company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2022. These forward-looking statements speak only as of the date hereof, and Invitae Corporation disclaims any obligation to update these forward-looking statements.

Contacts for Invitae:

Investor Relations
Hoki Luk
ir@invitae.com

Public Relations
Amy Hadsock
pr@invitae.com 

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SOURCE Invitae Corporation

FAQ

What was the value of Invitae's transaction with IDT?

The transaction with Integrated DNA Technologies was valued at approximately $48 million.

What is the focus of Invitae after the asset sale?

Invitae is focusing on precision oncology lab developed tests and enhancing its cash runway.

How will the transaction impact Invitae's cash position?

The transaction is expected to add to Invitae's cash position and contribute to reducing cash burn.

What technology will Invitae retain after the sale?

Invitae will retain its Anchored Multiplex PCR (AMP™) technology for its precision oncology services.

What are Invitae's future plans after the transaction?

Invitae plans to optimize its portfolio and focus on profitable growth in its core genetic testing business.