BY Fraser Tennant
Following rumours of imminent bankruptcy, plummeting stock prices and its trading suspension and delisting on the New York Stock Exchange, medical genetics company Invitae has filed for Chapter 11 bankruptcy protection.
According to court documents, the company is approximately $1.5bn in debt and has estimated total assets of between $500m and $1bn. Invitae began taking steps to reduce its debt in 2022 by terminating 1200 employees, downsizing office space and testing labs, and selling off unprofitable, non-core businesses.
The company intends to transition into Chapter 11 without disrupting business operations, and is committed to serving its customers and patients and meeting its commitments to employees and vendors. It has also stated it is seeking court approval to use the cash it currently has on hand to fund the case.
“We have been working diligently over the past 18 months to improve our cash position by realigning our portfolio and focusing on our most impactful business lines,” said Ken Knight, president and chief executive of Invitae. “These strategic initiatives have accelerated our path to positive cash flow in order to realise our potential as an industry-leading genetics platform.
“However, we still need to address the company’s debt position through these Chapter 11 proceedings,” he continued. “I want to thank our incredibly talented and hard-working employees for their continued focus on our patients and customers.”
Trusted by millions of patients and their providers to deliver timely genetic information using digital technology, Invitae provides accurate and actionable answers to strengthen medical decision making for individuals and their families.
The company’s genetics experts apply a rigorous approach to data and research, serving as the foundation of their mission to bring comprehensive genetic information into mainstream medicine to improve healthcare for billions of people.
As it moves through the Chapter 11 process, Invitae has reiterated its intention to remain steadfast in its commitment to deliver innovative solutions that empower individuals to unlock the value of genomic insights to improve their health.
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