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Invitae Q3 Revenues Increase 22 Percent

NEW YORK – Invitae reported after the close of the market Thursday a 22 percent year-over-year increase in third quarter revenues, beating the consensus Wall Street analyst estimate.

For the three months ended Sept 30, the firm generated $68.7 million in revenues compared to $56.5 million in Q3 2019 and exceeded the consensus Wall Street estimate of $59.7 million. 

The company's test revenues were $67.3 million in Q3 2020, a 21 percent increase compared to $55.5 million from the year-ago period. During the recently completed quarter, the company signed 32 deals with biopharmaceutical companies within its various free testing programs.

Invitae attributed the increase in test revenue to growing test volumes, a more diverse mix of product offerings, and pricing. More than two-thirds of Q3 revenues were attributable to test payment from third-party payors, largely higher Medicare payments, as well as improving commercial payor performance. The rest of the revenues are from pharma partners. 

"Q3 was a great quarter for us, and key performance metrics indicate that we can, and in time, will return to our pre-pandemic growth trajectory," Invitae CEO Sean George said in a call with investors to discuss the Q3 results.

The firm accessioned around 170,000 samples in the quarter, up 32 percent from 129,000 samples in Q3 2019. Invitae CFO Shelly Guyer said during the call that test volumes bounced back in Q3 and increased 42 percent compared to Q2. However, she cautioned that expectations around volume growth should be tempered for the coming quarters, given the upcoming flu season and emerging COVID-19 hotspots, which can result in regional shutdowns.

The company in June announced plans to acquire ArcherDx in order to expand its cancer genetic test offerings and begin providing tissue- and liquid biopsy-based tumor profiling, in addition to germline assessment. Though there wasn't much impact from the deal on Q3's financials, since it closed in early October, Guyer told analysts to expect more costs associated with the integration of the two companies in Q4. 

The company's net loss for the quarter was $102.9 million, or $.78 per share, from $78.7 million, or $.82 per share, in Q3 2019. The San Francisco-based firm used about 132. 5 million shares to calculate its loss-per-share figure in Q3, 2020 compared to 95.6 million shares in the year-ago quarter.

Its non-GAAP net loss per share was $.62, below the consensus Wall Street estimate of a loss per share of $.66.

Its R&D spending for the quarter decreased 20 percent to around $37.8 million from $47.0 million. Meanwhile, the company's SG&A costs rose 20 percent to $65.1 million from $54.4 million.

Invitae ended Q3 2020 with $106.4 million in cash and cash equivalents and $254.8 million in marketable securities. 

In Friday morning trading on the New York Stock Exchange, Invitae's stock price had decreased around 5 percent and was trading at $43.45.

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