Skip to main content
Premium Trial:

Request an Annual Quote

Invitae Files for IPO Targeting $86M

NEW YORK (GenomeWeb) – San Francisco-based genetic testing company Invitae has filed a prospectus for an initial public offering of its stock for up to $86 million.

Invitae has not priced its shares nor said how many it plans to offer, but said in its Form S-1 filed with the US Securities and Exchange Commission that it plans to trade on the New York Stock Exchange under the symbol "NVTA."

JP Morgan Securities, Cowen and Company, and Leerink Partners are listed as underwriters.

Invitae offers next-generation sequencing-based panels for a range of genetic conditions in the fields of cardiology, hereditary cancer, pediatric genetics, neurology, and hematology.

Physicians can order any combination of genes and panels for the same price of $1,500 and turnaround time is an average of three weeks. The firm sequences 216 genes, but will only interpret the genes that have been ordered by the physician. This year, the company plans to expand its panel from 216 genes to more than 500 genes, according to its SEC filing. Eventually, it plans to include all 4,000-plus genes known to be involved in a genetic disorder and potentially the whole genome.

Also in its S-1 form, Invitae said that as of Sept. 30, 2014, it has delivered more than 2,000 billable tests since its commercial launch in Nov. 2013, about 26 percent of which have been paid. Around 80 percent of ordered tests have been for hereditary cancers. Test sales grew significantly in 2014, from more than 200 tests in Q1 2014 to more than 1,100 in Q3.

In addition, as of Sept. 30, 2014 it had recognized $729,000 in revenue, up from $60,000 during the same period in the previous year. Its net loss for the first nine months of 2014 was $32.2 million, up from $16.7 million in the first nine months of 2013.

Last fall, Invitae raised $120 million in a Series F financing round, bringing its total raised to $207 million since its founding.

Aside from the firm's CLIA-certified, CAP-accredited laboratory in San Francisco, it has offices in Palo Alto, Calif., and a second laboratory in Santiago, Chile.

The company said it plans to increase its sales and marketing efforts in oncology this year and expand beyond cancer.

To increase reimbursement, the firm is looking to establish pilot programs with Innovation Centers within payor organizations to demonstrate the utility of multi-gene panels and said it currently has one underway with a major US healthcare provider. Invitae received coverage eligibility from Blue Shield of California and the Centers for Medicare and Medicaid Services in December.

Invitae said it anticipates that it will need additional laboratory capacity in 2016, and that between Sept. 30, 2014 and June 30, 2015, it expects to hire 25 to 30 full-time employees each quarter. As of Dec. 31, 2014, Invitae had 161 employees.