NEW YORK (GenomeWeb) – Invitae plans to offer 5,350,000 shares of its common stock at a price between $13 and $15 per share in its planned initial public offering, the firm said in an amended S-1 registration statement filed with the US Securities and Exchange Commission today.
Invitae had initially filed for an IPO last month, targeting $86 million in proceeds.
According to the amended filing, the company plans to raise up to $92.3 million in the offering from about 6.2 million registered shares, which includes 802,500 shares to cover an over-allotment option granted to the underwriters of the offering – JP Morgan Securities, Cowen and Company, and Leerink Partners. Total net proceeds would be around $66.6 million, assuming an IPO price of $14 per share.
Invitae plans to use between $24 million and $28 million of the proceeds for research and development; between $23 million and $27 million for marketing and sales; between $4 million and $6 million for capital expenditures, such as additional lab space and equipment; and the remainder for corporate and administrative expenses.
Since the initial filing, Invitae's common stock has been approved for listing on the New York Stock Exchange under the symbol "NVTA."
Invitae said previously that it plans to expand the number of genes it sequences for its tests from 216 to 500 this year. The firm noted in its amended filing that its test volume "has grown rapidly since commercial launch with over 2,000 billable tests delivered as of September 30, 2014. In addition, we delivered over 1,800 billable tests in the fourth quarter of 2014." But it also cautioned that it expects its testing business to grow more slowly prior to the expansion of the assay.
"As the market for our billable tests develops, we expect that competitors will release offerings with broader content that is clinically relevant to particular patients. We thus expect our rate of growth in delivered billable tests to slow in periods leading up to commercial releases of our expanding platform, including the period in 2015 leading up to the first planned expansion of our current assay of 216 genes," according to the filing.
Invitae also disclosed today that it entered into a reimbursement contract with health insurance provider SelectHealth last December. This follows a similar contract with Blue Shield of California last October, and approval as a Medicare provider last year, both of which the company announced in December.
The firm also noted in the amended filing that its board of directors approved a reverse stock split at a 1-for-6 ratio last month, which would take effect prior to the IPO.