-- Company demonstrates early progress towards achieving its goal of
making genetic information more affordable and accessible --
SAN FRANCISCO--(BUSINESS WIRE)--
Invitae Corporation (NYSE:NVTA) today reported financial and operating
results for the fourth quarter and year ended December 31, 2014.
Highlights for the quarter and year include:
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Delivered more than 1,800 billable reports in the fourth quarter and
more than 3,600 billable reports during 2014.
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Improved cost of goods sold (COGS) by driving the average cost per
billable report to under $1,200 in the fourth quarter. The average
cost per billable report in 2014 was over $1,500.
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Generated $876,000 in revenue in the fourth quarter and $1.6 million
for the full year.
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Secured reimbursement contracts with Blue Shield of California and
SelectHealth, and became licensed for Medicare.
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Published data in the Journal of Clinical Oncology based on a
collaboration with Stanford University and presented data at the San
Antonio Breast Cancer Symposium based on a Stanford/Massachusetts
General Hospital collaboration demonstrating 100% analytical
concordance and 99.8% clinical concordance with existing hereditary
cancer tests.
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Secured accreditation from the College of American Pathologists (CAP).
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Raised $120 million in a series F round which led to an IPO in
February 2015.
“Our progress in 2014 was foundational for the future success of
Invitae’s genetic testing business. As we look to 2015, we will continue
to focus on driving down costs, increasing content and delivering a
superior customer experience,” said Randy Scott, chief executive officer
of Invitae. “In doing this, we believe we can accelerate the adoption of
comprehensive genetic information into mainstream medical practice and
realize our long-term mission to make genetic testing more affordable
and accessible for billions of people around the world.”
The company reported revenue of $876,000 in the fourth quarter of 2014,
compared to $88,000 in the fourth quarter of 2013. Revenue for the year
ended December 31, 2014 was $1.6 million, compared to $148,000 in 2013.
Total costs and operating expenses for the fourth quarter of 2014 were
$16.3 million, compared to $12.8 million for the third quarter of 2014.
For the full year, total costs and operating expenses were $49.1
million, compared to $24.9 million in 2013. Net loss was $15.5 million
in the fourth quarter of 2014, or a $16.75 loss per share, and net loss
for the full year was $47.7 million, or a loss of $56.34 per share.
At December 31, 2014, the company held $107 million in cash and cash
equivalents.
Guidance and indicators of success in 2015
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The four guiding indicators of success in 2015 include:
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1.
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Reducing COGS. Invitae plans to reduce the average cost of
billable reports in 2015 versus 2014.
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2.
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Increasing content. As the company reduces the cost of its
service, 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.
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3.
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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 providing
guidance for 2015 of delivering 14,000-17,000 billable tests to
its customers.
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4.
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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.
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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 the company’s
business.
The dial-in numbers for today’s live conference call are (877) 201-0168
for domestic callers and (647) 788-4901 for international callers, and
the reservation number for both is 94713369.
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 over 200 genes for a
variety of genetic disorders associated primarily with cancer, but also
covering cardiology, hematology, neurology and pediatrics.
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; and the indicators of the company’s success and its intentions
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 FDA; 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 Registration Statement on Form S-1 (including the final
prospectus dated February 11, 2015). 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.
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Invitae Corporation
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Consolidated Statements of Operations
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Three months ended
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Year ended
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December 31,
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December 31,
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2014
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|
2013
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2014
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2013
|
|
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(In thousands, except share and per share amounts)
|
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(unaudited)
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Revenue
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$
|
875
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|
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$
|
88
|
|
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$
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1,604
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|
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$
|
148
|
|
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Costs and operating expenses:
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|
|
|
|
|
|
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Cost of revenue
|
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2,361
|
|
|
|
226
|
|
|
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5,624
|
|
|
|
667
|
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Research and development
|
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6,540
|
|
|
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5,418
|
|
|
|
22,140
|
|
|
|
16,039
|
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Selling and marketing
|
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2,940
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|
|
832
|
|
|
|
8,763
|
|
|
|
2,431
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|
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General and administrative
|
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4,493
|
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|
|
1,727
|
|
|
|
12,605
|
|
|
|
5,764
|
|
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Total costs and operating expenses
|
|
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16,334
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|
|
|
8,203
|
|
|
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49,132
|
|
|
|
24,901
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|
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Loss from operations
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|
|
(15,459
|
)
|
|
|
(8,115
|
)
|
|
|
(47,528
|
)
|
|
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(24,753
|
)
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Other income (expense), net
|
|
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(10
|
)
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(1
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)
|
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(79
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)
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|
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(26
|
)
|
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Interest expense
|
|
|
(12
|
)
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|
(15
|
)
|
|
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(61
|
)
|
|
|
(59
|
)
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Net loss
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$
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(15,481
|
)
|
|
$
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(8,131
|
)
|
|
$
|
(47,668
|
)
|
|
$
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(24,838
|
)
|
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Net loss attributable to common stockholders
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|
$
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(15,481
|
)
|
|
$
|
(8,131
|
)
|
|
$
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(47,668
|
)
|
|
$
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(24,989
|
)
|
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Net loss per share attributable to common stockholders, basic and
diluted
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|
$
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(16.75
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)
|
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$
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(11.18
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)
|
|
$
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(56.34
|
)
|
|
$
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(36.13
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)
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Shares used in computing net loss per share attributable to common
stockholders, basic and diluted
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924,139
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|
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727,173
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846,027
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|
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691,731
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|
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Invitae Corporation
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Consolidated Balance Sheets
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December 31,
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2014
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2013
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Assets
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(In thousands)
(unaudited)
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Current assets:
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Cash and cash equivalents
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$
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107,027
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$
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43,070
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Prepaid expenses and other current assets
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4,517
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|
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736
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Total current assets
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111,544
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43,806
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Property and equipment, net
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15,672
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8,164
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Restricted cash
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150
|
|
|
|
120
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|
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Other assets
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1,412
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|
|
|
1,013
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Total assets
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128,778
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53,103
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Liabilities and Stockholders’ Deficit
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Current liabilities:
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Accounts payable
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$
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2,862
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$
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498
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Accrued liabilities
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3,363
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|
|
|
886
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Capital lease obligation, current portion
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1,524
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|
|
|
845
|
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Total current liabilities
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7,749
|
|
|
|
2,229
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Capital lease obligation, net of current portion
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|
2,011
|
|
|
|
1,156
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|
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Other long term liabilities
|
|
|
401
|
|
|
|
393
|
|
|
Liabilities related to early exercise of stock options
|
|
|
14
|
|
|
|
31
|
|
|
Total liabilities
|
|
|
10,175
|
|
|
|
3,809
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|
|
Convertible preferred stock
|
|
|
202,355
|
|
|
|
86,574
|
|
|
Stockholders’ (deficit):
|
|
|
|
|
|
Common stock
|
|
|
1
|
|
|
|
—
|
|
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Additional paid-in capital
|
|
|
1,603
|
|
|
|
408
|
|
|
Accumulated deficit
|
|
|
(85,356
|
)
|
|
|
(37,688
|
)
|
|
Total stockholders’ deficit
|
|
|
(83,752
|
)
|
|
|
(37,280
|
)
|
|
Total liabilities, convertible preferred stock and stockholders’
(deficit)
|
|
$
|
128,778
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|
|
$
|
53,103
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Source: Invitae Corporation