-- Company accelerates R&D and reports strong volume growth --
--
Announces new pricing programs to make genetic testing more affordable
and accessible --
SAN FRANCISCO--(BUSINESS WIRE)--
Invitae
Corporation (NYSE:
NVTA) today reported financial and operating results for the first
quarter ended March 31, 2015. Highlights for the quarter include:
-
Generated revenue of $1.2 million in the first quarter, an increase of
40% over revenue in the fourth quarter of 2014.
-
Increased volume by delivering more than 2,200 billable reports, an
increase of 23% over volume in the fourth quarter of 2014, and
accessioning more than 2,700 samples in the first quarter.
-
Reported cost of goods sold (COGS) of less than $1,200 per sample
accessioned for the quarter.
-
Expect to see reductions in the average cost per billable test of
30-40% in Q2 as a result of a series of laboratory process
improvements that were implemented in Q1.
-
Expanded its test catalog to include four new cancer-related genes, as
well as full coverage of CHEK2, a gene associated with increased
cancer risk. The company also released a new hereditary high-risk
gynecologic panel.
-
Published and presented clinical
data at the American
College of Medical Genetics annual meeting, including data on
clinical experience with its medical interpretation platform as well
as data demonstrating the use of next-generation sequencing for
multi-gene panels and the value of looking beyond BRCA 1/2 for
hereditary breast and ovarian cancer.
-
Completed its initial
public offering with total gross proceeds of approximately $116
million.
-
Announced that Dr.
Robert Nussbaum, one of the world’s foremost experts in medical
genetics, will be joining Invitae from UCSF as the chief medical
officer, beginning August 1, 2015.
In addition, Invitae is introducing new pricing programs for its tests
for three customer segments:
-
For third party payors where Invitae is out of network, the price per
indication will continue to be $1,500.
-
For institutional customers and third party payors with whom Invitae
has contracts and who bring Invitae in network, the price per
indication will be $950.
-
For patients who have opted to pay for genetic services themselves,
and whose clinician has ordered the testing online, the price per
indication will be $475. Invitae plans to launch this program June 1.
-
These pricing programs will cover all of Invitae’s offerings in
neurology, cardiology, pediatrics, hematology, cancer and other
disease areas.
“All of this progress has enabled us to implement our new pricing
programs, which ultimately allow us to provide more customers with more
affordable genetic tests and services,” said Randy Scott, chairman and
CEO of Invitae. “With the infrastructure we have built, we believe we
are well positioned to be one of the leading players in multiple
markets, at multiple price points, serving a multi-billion dollar
industry.”
The company reported total revenue of $1.2 million in the first quarter
of 2015, compared to $118,000 in the first quarter of 2014. Total
operating expenses for the first quarter of 2015 were $19.8 million,
compared with $9.1 million for the first quarter of 2014. Net loss was
$18.6 million in the first quarter of 2015, or a $1.09 loss per share.
At March 31, 2015, cash, cash equivalents, marketable securities and
long-term investments totaled $194.3 million.
Indicators of our success in 2015
The four guiding indicators of success in 2015 include:
1. Reducing COGS. Invitae plans to reduce the average cost of billable
reports in 2015 versus 2014.
2. Increasing content. As the company reduces the cost of its services,
it plans to grow its test menu, making more content available for the
same or lower prices. Invitae plans to increase its content to more than
500 genes by the end of 2015.
3. Increasing volume. The company expects that the increase in content
will translate into growth in test volumes in the second half of the
year as it makes more comprehensive information available to patients in
existing markets and addresses new areas of medical need for genetic
information. The company is confirming its guidance for 2015 of
delivering 14,000-17,000 billable tests to its customers.
4. Improving reimbursement and cash collections. As volume grows,
Invitae plans to streamline its billing and reimbursement functions and
grow its managed care sales force. These efforts, coupled with the
increased claims volumes at individual payors, should translate into
more payor contracts and increased collections.
Conference call details
Invitae will host a live conference call and webcast today at 4:45 p.m.
Eastern/1:45 p.m. Pacific to discuss financial results and highlights.
The dial-in numbers for the conference call are (877) 201-0168 for
domestic callers and (647) 788-4901 for international callers, and the
reservation number for both is 26346322.
The live, listen-only webcast of the conference 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’s (NYSE: NVTA) mission is to bring comprehensive genetic
information into mainstream medical practice to improve the quality of
healthcare for billions of people. Currently focused on hereditary
cancers, Invitae’s goal is to aggregate most of the world’s genetic
tests into a single service with higher quality, faster turnaround time
and lower price than many single-gene tests today. The company currently
provides a single diagnostic service comprising more than 200 genes for
a variety of genetic disorders associated primarily with cancer, but
also covering cardiology, hematology, neurology and pediatrics.
For more information, visit our website at ir.invitae.com
and follow us on @twitter: @invitaeIR.
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 belief that it can
accelerate the adoption of comprehensive genetic information into
mainstream medical care and realize its mission; the company’s
expectations regarding the number of billable tests in 2015; the timing
of any new testing service releases and the attributes of any such
services; the company’s expectations regarding its average cost per
billable test; the company’s beliefs regarding the benefits of its new
pricing program; the attributes and benefits of the company’s genome
management and genome network programs; and the indicators of the
company’s success and its expected actions with respect to those
indicators. 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; 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;
risks associated with the company’s ability to use rapidly changing
genetic data to interpret test results accurately and consistently; the
company’s ability to compete; laws and regulations applicable to the
company’s business, including potential regulation by the Food and Drug
Administration; 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 Annual Report on Form 10-K for the year ended
December 31, 2014. These forward-looking statements speak only as of the
date hereof, and Invitae Corporation disclaims any obligation to update
these forward-looking statements.
NOTE: Invitae and the Invitae logo are trademarks of Invitae
Corporation. All other trademarks and service marks are the property of
their respective owners.
|
Invitae Corporation
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
(unaudited)
|
|
Revenue
|
|
$
|
1,229
|
|
$
|
118
|
|
|
Costs and operating expenses:
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
3,199
|
|
|
611
|
|
|
Research and development
|
|
|
8,455
|
|
|
4,965
|
|
|
Selling and marketing
|
|
|
4,740
|
|
|
1,666
|
|
|
General and administrative
|
|
|
3,440
|
|
|
1,895
|
|
|
Total costs and operating expenses
|
|
|
19,834
|
|
|
9,137
|
|
|
Loss from operations
|
|
|
(18,605
|
)
|
|
(9,019
|
)
|
|
Other income (expense), net
|
|
|
(4
|
)
|
|
3
|
|
|
Interest expense
|
|
|
(28
|
)
|
|
(17
|
)
|
|
Net loss
|
|
$
|
(18,637
|
)
|
$
|
(9,033
|
)
|
|
Net loss attributable to common stockholders
|
|
$
|
(18,637
|
)
|
$
|
(9,033
|
)
|
|
Net loss per share attributable to common stockholders, basic and
diluted
|
|
$
|
(1.09
|
)
|
$
|
(12.06
|
)
|
|
|
|
|
|
|
|
|
|
Shares used in computing net loss per share attributable to common
stockholders, basic and diluted
|
|
|
17,063,463
|
|
|
749,048
|
|
|
Invitae Corporation
Condensed Consolidated Balance Sheets
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
March 31
|
|
December 31
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalent
|
|
$
|
68,264
|
|
$
|
107,027
|
|
|
Prepaid expenses and other current assets
|
|
|
3,889
|
|
|
2,616
|
|
|
Marketable securities
|
|
|
116,069
|
|
|
-
|
|
|
Total current assets
|
|
|
188,222
|
|
|
109,643
|
|
|
Property and equipment, net
|
|
|
18,180
|
|
|
15,672
|
|
|
Restricted cash
|
|
|
150
|
|
|
150
|
|
|
Marketable securities, noncurrent
|
|
|
10,181
|
|
|
-
|
|
|
Other assets
|
|
|
1,482
|
|
|
3,313
|
|
|
Total assets
|
|
$
|
218,215
|
|
$
|
128,778
|
|
|
Liabilities and Stockholders’ Deficit
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
1,123
|
|
$
|
2,862
|
|
|
Accrued liabilities
|
|
|
7,102
|
|
|
3,237
|
|
|
Capital lease obligation, current portion
|
|
|
1,428
|
|
|
1,524
|
|
|
Total current liabilities
|
|
|
9,653
|
|
|
7,623
|
|
|
Capital lease obligation, net of current portion
|
|
|
1,780
|
|
|
2,011
|
|
|
Other long term liabilities
|
|
|
412
|
|
|
401
|
|
|
Liabilities related to early exercise of stock options
|
|
|
11
|
|
|
14
|
|
|
Total liabilities
|
|
|
11,856
|
|
|
10,049
|
|
|
Convertible preferred stock
|
|
|
-
|
|
|
202,305
|
|
|
Stockholders’ (deficit):
|
|
|
|
|
|
|
Common stock
|
|
|
3
|
|
|
-
|
|
|
Accumulated other comprehensive income
|
|
|
(26
|
)
|
|
-
|
|
|
Additional paid-in capital
|
|
|
310,199
|
|
|
1,604
|
|
|
Accumulated deficit
|
|
|
(103,817
|
)
|
|
(85,180
|
)
|
|
Total stockholders’ deficit
|
|
|
206,359
|
|
|
(83,576
|
)
|
|
Total liabilities, convertible preferred stock and stockholders’
(deficit)
|
|
$
|
218,215
|
|
$
|
128,778
|
|
The condensed, consolidated balance sheet at December 31, 2014 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, 2014.
Source: Invitae Corporation