Genetic testing company Invitae files for bankruptcy

Invitae, a medical genetic testing company based in San Francisco, has filed for Chapter 11 bankruptcy as it grapples with financial challenges. Despite listing assets between $500 million and $1 billion, the company faces liabilities ranging from $1 billion to $10 billion. To ensure continuity, Invitae plans to utilise its available cash and is seeking approval from the U.S. Bankruptcy Court for the District of New Jersey. 

The company, which went public in 2015 and saw its stock reach a high of $56.60 per share in 2020, has struggled to turn a profit since its emergence in 2012. Recent setbacks include a stock price plummet to $0.019 per share, two rounds of layoffs between 2022 and 2023, and the New York Stock Exchange initiating the delisting process due to the stock's "abnormally low price levels."

In 2021, Invitae had announced a definitive agreement to acquire Ciitizen, a health records organisation startup, for about $325 million. The company's strategic initiatives over the past eighteen months aimed at improving its cash position and focusing on impactful business lines did not prevent the need for the Chapter 11 filing. 

Invitae reported a net loss of over $1.34 billion for the first nine months of 2023, and last year, it divested Ciitizen, anticipating annual savings of $90 to $100 million. The bankruptcy filing represents a significant development for the genetic test-maker as it aims to address its debt position and navigate the challenges in the rapidly evolving medical genetics industry.