SAN FRANCISCO, Feb. 12, 2018 /PRNewswire/ -- Invitae
Corporation (NYSE: NVTA), one of the fastest growing genetic
information companies, today announced financial and operating
results for the fourth quarter and full year ended December 31, 2017.
![](https://mma.prnewswire.com/media/641141/Invitae_Corporation_Chart.jpg)
"Over the past year, we have made significant strategic
investments that we believe uniquely position our company to
deliver affordable, high-quality, comprehensive genetic information
and empower individuals to do more with that information,"
commented Sean George, chief
executive officer of Invitae. "Our continued triple-digit volume
and revenue growth demonstrates the power of our approach. Our cost
structure, scalability and reputation has made us the
fastest-growing genetic information company in hereditary cancer,
and we are now leveraging that strength across all stages of life
to become the partner of choice for individuals, health systems,
biopharma partners and advocacy communities bringing genetic
information into mainstream medical practice."
Fourth Quarter and Full Year 2017 Financial Results
On November 14, 2017, Invitae
completed its previously announced acquisition of CombiMatrix.
Invitae's consolidated operating results below for the three and 12
months ended December 31, 2017,
include the results of CombiMatrix beginning on the acquisition
date. References to "base Invitae business" operating results and
business measurements refer to Invitae fourth quarter and full-year
2017 results excluding any contribution from Good Start Genetics,
acquired in August 2017, or
CombiMatrix.
- 154% increase in samples accessioned: Nearly 150,000
samples accessioned in 2017, including over 53,000 samples in the
fourth quarter of 2017.
-
- Base business accessioned more than 134,000 samples for the
full year 2017, including nearly 44,000 samples accessioned in the
fourth quarter, which exceeded the upper end of an increased
full-year guidance range of 120,000-130,000. This represents
approximately a 130% increase over the nearly 59,000 samples
accessioned for the full year in 2016
- 172% increase in full-year revenue: 2017 consolidated
revenue reached $68.2 million,
including $25.4 million in the fourth
quarter of 2017.
-
- Full-year revenue for the base business totaled $60.0 million, including revenue of $19.4 million in the fourth quarter 2017,
reflecting an increase over 2016 revenue of 140% and 110%
respectively.
- 19% reduction in COGS: Reduced cost (COGS) per sample
accessioned to $321, representing a
19% decrease in COGS per sample accessioned in the fourth quarter
2016.
-
- Reduced COGS per sample accessioned for the base business to
$297, or 25% in the fourth quarter
2017 compared to the prior year period.
- Significantly improved gross profit: Achieved positive
gross profit of $8.3 million in the
fourth quarter of 2017 and a total of approximately $18.1 million for the year compared to
$1.1 million in the fourth quarter
and ($2.8) million for full year
2016.
Total operating expenses, excluding cost of goods sold (COGS),
for the full year 2017 were $139.4
million compared to $97.4
million in 2016. Total operating expenses for the fourth
quarter of 2017, excluding COGS, were $43.2
million compared to $26.0
million in the fourth quarter of 2016. Net loss for the full
year 2017 was $123.4 million, or a
$2.65 loss per share compared to a
net loss of $100.3 million, or a
$3.02 loss per share, for the full
year 2016. For the fourth quarter of 2017, Invitae reported a net
loss of $40.5 million, or a
$0.78 loss per share, compared to a
net loss of $24.8 million in the
fourth quarter of 2016, or a $0.69
loss per share.
At December 31, 2017, cash, cash
equivalents, restricted cash, and marketable securities totaled
approximately $76.0 million. Cash
used in operating activities in 2017 amounted to $97.7 million, as compared to $76.3 million in 2016.
2017 Strategic Advancements and Operational
Highlights
- Added to the Invitae offering with the release of new testing
content and broader service enhancements:
-
- Launched exome sequencing and interpretation services, bringing
the company's available test menu to more than 20,000 genes.
- Introduced unique test for Spinal Muscular Atrophy.
- Expanded test menu for proactive genetic testing in healthy
adults to include additional genes linked to cancer, cardiovascular
conditions, and other genetic disorders.
- Added 80 new panels alongside updates to an additional 24
panels for the diagnosis of inherited immunologic and metabolic
disorders, including panels designed to confirm diagnoses suggested
by newborn screening.
- Launched family variant testing at no additional charge.
- Expanded Invitae's network through strategic partnerships and
targeted acquisitions to inform healthcare decisions across all
stages of life:
-
- Acquired CombiMatrix (NASDAQ: CBMX), specializing in prenatal
diagnosis, miscarriage analysis, and pediatric developmental
disorders.
- Acquired Good Start Genetics adding best-in-class carrier and
NGS preimplantation screening to leading IVF centers.
- Acquired CancerGene Connect, an award-winning risk assessment
and family history analysis platform for collecting and managing
genetic family histories, through the acquisition of Ommdom,
Inc.
- Acquired patient-centered data company AltaVoice, creating new
offerings to advance research and access to care for patients with
inherited and rare diseases.
- Signed more than a dozen contracts with biopharma companies,
including a new partnership with Alnylam Pharmaceuticals to provide
testing for patients suspected of having hereditary ATTR
amyloidosis, a rare, progressive and life-threatening disease
characterized by accumulation of misfolded proteins in nerves and
cells of other organs.
- Launched the Invitae Patient Insights Network, enabling
participants to contribute data, learn how others manage similar
health plans, and receive information about the latest research and
clinical trial opportunities.
2018 Guidance
For 2018, the company announced it anticipates accessioning at
least 250,000 samples and generating at least $120 million in revenue for the combined
organization.
Webinar and Conference Call Details
Management will host a conference call and webcast today at
4:30 p.m. Eastern / 1:30 p.m. Pacific to discuss financial results
and recent developments. The dial-in numbers for the conference
call are (866) 393-4306 for domestic callers and (734) 385-2616 for
international callers, and the reservation number for both is
1395729. Following prepared remarks, management will respond to
questions from investors and analysts, subject to time
limitations.
The live webcast of the call may be accessed by visiting the
investors section of the company's website at ir.invitae.com. A
replay of the webcast will be available shortly after the
conclusion of the call and will be archived on the company's
website.
About Invitae
Invitae Corporation (NYSE: NVTA) is bringing comprehensive
genetic information into mainstream medical practice to improve the
quality of healthcare for billions of people. As one of the fastest
growing genetic information company, Invitae is advancing the broad
potential of genetics, helping to expand its use across the
healthcare continuum. The company provides genetic information
services for all stages of life – from preconception screening, to
newborn diagnosis, to inherited disease screening, to proactive
health management – and a unique, rapidly expanding network of
patients, hospital systems, and advocacy partners that is moving
genetics from one-dimensional testing to complex information
management. For more information visit www.invitae.com, or follow
us on Twitter, Facebook or LinkedIn.
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 expectations
that its robust test volume and revenue growth will continue in
2018 and beyond; that the market for genetic information will
continue to expand rapidly; that the company's strategic
investments in content and capabilities uniquely position it to
provide genetic information services; the company's belief that it
is the fastest-growing genetic information company in hereditary
cancer; and that the company is leveraging its strengths to become
the partner of choice for genetic information 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 company's history of losses; risks associated with
the company's limited experience with respect to acquisitions; 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 company's ability to develop and commercialize new tests
and expand into new markets; the risk that the company may not
obtain or maintain sufficient levels of reimbursement for its
tests; the company's inability to raise additional capital on
acceptable terms; risks associated with the company's ability to
use rapidly changing genetic data to interpret test results
accurately, consistently, and quickly; security breaches, loss of
data and other disruptions; laws and regulations applicable to the
company's business; and the other risks set forth in the company's
filings with the Securities and Exchange Commission, including the
risks set forth in the company's Quarterly Report on Form 10-Q for
the quarter ended September 30, 2017.
These forward-looking statements speak only as of the date hereof,
and Invitae Corporation disclaims any obligation to update these
forward-looking statements.
Invitae
Corporation Condensed Consolidated Statements of
Operations (In thousands, except share and per share
amounts)
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(unaudited)
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Test
revenue
|
|
$
|
24,572
|
|
$
|
9,093
|
|
$
|
65,169
|
|
$
|
24,840
|
Other
revenue
|
|
|
827
|
|
|
143
|
|
|
3,052
|
|
|
208
|
Total
revenue
|
|
|
25,399
|
|
|
9,236
|
|
|
68,221
|
|
|
25,048
|
Costs and operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of test
revenue
|
|
|
17,049
|
|
|
8,173
|
|
|
50,142
|
|
|
27,878
|
Research and
development
|
|
|
13,605
|
|
|
11,775
|
|
|
46,469
|
|
|
44,630
|
Selling and
marketing
|
|
|
16,079
|
|
|
7,949
|
|
|
53,417
|
|
|
28,638
|
General and
administrative
|
|
|
13,557
|
|
|
6,291
|
|
|
39,472
|
|
|
24,085
|
Total costs and
operating expenses
|
|
|
60,290
|
|
|
34,188
|
|
|
189,500
|
|
|
125,231
|
Loss from
operations
|
|
|
(34,891)
|
|
|
(24,952)
|
|
|
(121,279)
|
|
|
(100,183)
|
Other income
(expense), net
|
|
|
293
|
|
|
226
|
|
|
(303)
|
|
|
348
|
Interest
expense
|
|
|
(1,137)
|
|
|
(122)
|
|
|
(3,654)
|
|
|
(421)
|
Net loss before
taxes
|
|
|
(35,735)
|
|
|
(24,848)
|
|
|
(125,236)
|
|
|
(100,256)
|
Income tax expense
(benefit)
|
|
|
4,758
|
|
|
—
|
|
|
(1,856)
|
|
|
—
|
Net loss
|
|
$
|
(40,493)
|
|
$
|
(24,848)
|
|
$
|
(123,380)
|
|
$
|
(100,256)
|
Net loss per share,
basic and diluted
|
|
$
|
(0.78)
|
|
$
|
(0.69)
|
|
$
|
(2.65)
|
|
$
|
(3.02)
|
Shares used in
computing net loss per share, basic and diluted
|
|
|
52,018,007
|
|
|
36,245,400
|
|
|
46,511,739
|
|
|
33,176,305
|
Invitae
Corporation Condensed Consolidated Balance
Sheets (In thousands)
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
12,053
|
|
$
|
66,825
|
Marketable
securities
|
|
|
52,607
|
|
|
25,798
|
Accounts
receivable
|
|
|
10,422
|
|
|
1,153
|
Prepaid expenses and
other current assets
|
|
|
11,599
|
|
|
8,024
|
Total current
assets
|
|
|
86,681
|
|
|
101,800
|
Property and
equipment, net
|
|
|
30,341
|
|
|
23,793
|
Restricted
cash
|
|
|
5,406
|
|
|
4,697
|
Marketable
securities, non-current
|
|
|
5,983
|
|
|
—
|
Intangible assets,
net
|
|
|
35,516
|
|
|
—
|
Goodwill
|
|
|
46,575
|
|
|
—
|
Other
assets
|
|
|
576
|
|
|
361
|
Total
assets
|
|
$
|
211,078
|
|
$
|
130,651
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
8,606
|
|
$
|
3,352
|
Accrued
liabilities
|
|
|
22,742
|
|
|
6,711
|
Capital lease
obligation, current portion
|
|
|
2,039
|
|
|
1,309
|
Debt, current
portion
|
|
|
—
|
|
|
3,381
|
Total current
liabilities
|
|
|
33,387
|
|
|
14,753
|
Capital lease
obligation, net of current portion
|
|
|
3,373
|
|
|
266
|
Debt, net of current
portion
|
|
|
39,084
|
|
|
8,721
|
Other long-term
liabilities
|
|
|
13,440
|
|
|
7,837
|
Total
liabilities
|
|
|
89,284
|
|
|
31,577
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common
stock
|
|
|
5
|
|
|
4
|
Accumulated other
comprehensive loss
|
|
|
(171)
|
|
|
—
|
Additional paid-in
capital
|
|
|
520,558
|
|
|
374,288
|
Accumulated
deficit
|
|
|
(398,598)
|
|
|
(275,218)
|
Total stockholders'
equity
|
|
|
121,794
|
|
|
99,074
|
Total liabilities and
stockholders' equity
|
|
$
|
211,078
|
|
$
|
130,651
|
The condensed, consolidated balance sheet at December 31, 2016 has been derived from the
audited consolidated financial statements at that date included in
the company's Annual Report on Form 10-K for the year ended
December 31, 2016.
Contact:
Kate McNeil
ir@invitae.com
347-204-4226
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SOURCE Invitae Corporation