– Maintains Minority Equity Stake in
Ciitizen –
– Anticipated Total Cash Savings of Approximately
$90-100 Million on an Annualized
Basis –
SAN
FRANCISCO, Dec. 13, 2023 /PRNewswire/
-- Invitae (NYSE: NVTA), a leading medical genetics
company, today announced strategic changes to streamline operations
and reduce operating cash burn. The company has divested the assets
of Ciitizen and announced strategic cost cuts, which will include a
workforce reduction and other operating expense reductions.
Ciitizen Divestiture
Ciitizen is a patient-centric
consumer health tech platform that helps patients collect,
organize, store and share their medical records digitally. With the
divestiture, the Ciitizen assets have been transferred to a new
entity established by the leadership team of the Ciitizen business
and funded by a group of venture capital investors. Invitae
maintains a minority equity interest in this newly formed company.
Invitae and the new company intend to collaborate on key
initiatives as the Ciitizen platform expands globally.
Invitae continues to operate its core genetics data business,
including sponsored testing programs, biopharma research services
and rare disease discovery.
"We continue to believe that patient-consented data is growing
in importance for improving patient care, and that this new company
will be able to take the platform to the next level," said
Ken Knight, president and chief
executive officer of Invitae.
"Ciitizen's direct relationships with patients are at the heart
of our platform, and Ciitizen has proven its benefits to patients
living with rare diseases," said Farid
Vij, prior Ciitizen general manager at Invitae and chief
executive officer of the new company. "We're grateful for the
incredible support from Invitae and our investors, and we are
excited to continue to serve more patients and their families. We
remain dedicated to working closely with the patient advocacy
groups and industry partners in the rare disease community, and we
look forward to exploring opportunities by partnering with
Invitae."
Strategic Operating Expense Reductions
Today, the
company also implemented efforts to significantly reduce its
operating expenses via a workforce reduction and other cost saving
initiatives, which include streamlining processes across its core
platforms and optimizing its technology, professional services and
other spending.
In combination with the Ciitizen transaction, these initiatives
are anticipated to result in annualized cash savings of
approximately $90-100 million,
excluding one-time severance related payments.
Knight continued, "The actions announced today will assist in
streamlining our operations and reducing our cash burn. While
these moves unfortunately involve a reduction in our workforce, we
are committed to working closely with those impacted to ensure a
smooth transition for them and for our customers and patients."
About Invitae
Invitae (NYSE: NVTA) is a leading
medical genetics company trusted by millions of patients and their
providers to deliver timely genetic information using digital
technology. We aim to provide accurate and actionable answers to
strengthen medical decision-making for individuals and their
families. Invitae'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.
To learn more, visit invitae.com and follow for
updates on Twitter, Instagram, Facebook and
LinkedIn @Invitae.
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 strategic objectives and anticipated
outcomes; the divestiture of and future partnership opportunities
with Ciitizen; and operational streamlining, cost reduction
initiatives and their projected impact on the company's financial
and operational performance. 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 availability of and need for
capital; the ability to service the company's debt obligations; the
successful execution and anticipated benefits of the divestiture
and cost reduction strategies; potential unforeseen costs or
challenges associated with these strategies; the risk that the
disruption resulting from these activities may harm the company's
business, market share or its relationship with customers or
potential customers; the impact of inflation and the current
economic environment on the company's business; and the other risks
set forth in the reports filed by the company with the SEC,
including its Quarterly Report on Form 10-Q for the quarter ended
September 30, 2023. These
forward-looking statements speak only as of the date hereof, and
Invitae Corporation disclaims any obligation to update these
forward-looking statements.
Invitae Contacts:
Investor Relations
Hoki
Luk
ir@invitae.com
Public Relations
Amy
Hadsock
pr@invitae.com
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SOURCE Invitae Corporation