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Invitae Q3 Revenues More Than Double

NEW YORK (GenomeWeb) – Invitae reported after the close of the market on Wednesday a 106 percent year-over-year increase in third quarter revenues driven by 95 percent growth in testing volume.

For the three months ended Sept. 30, the company posted $37.4 million in revenue, up from $18.1 million in Q3 of 2017, and beating the consensus Wall Street estimate of $34.7 million.

The company accessioned approximately 78,000 samples in Q3 2018, up 95 percent from the year-ago quarter when it accessioned 40,000 samples. Approximately 75,000 tests were billable during the quarter, a 92 percent increase from the 39,000 billable tests in Q3 2017.

In the past year, Invitae has tripled its volume from biopharma sponsored testing programs and institutions. During the third quarter, the company also saw test volume increases in international markets and in the cardiology/neurology/pediatrics segment "from continued success at children’s hospitals," Invitae CFO Shelly Guyer said during an earnings call with analysts.

"While we are just beginning to build our brand with ObGyn and IVF centers, we continue to see growth in [tests ordering from] genetics experts, including genetic counselors, medical geneticists, and specialists," Guyer said.

The company's average cost per sample was around $260 in the third quarter, a 21 percent reduction from a $330 average cost per sample in Q3 2017.

In Q3, average revenue per test was $490 compared to $470 in Q2 2018. Guyer attributed the increase to improved collection rates from third-party payors and a mix of institutional and pharma partners, which comprise 25 percent of the company’s revenues.

During the quarter, Invitae found out from Medicare that it could bill for Lynch syndrome analysis using CPT code 81436. In  Q4, Guyer said, the company expects a one-time payment from Medicare for deletion/duplication analysis for colon cancer testing. She did not state the amount of the payment, however.

For the recently completed quarter, Invitae posted a net loss of $31.7 million, or $.45 per share, compared to a net loss of $27.4 million or $.57 per share, in the third quarter of 2017. Analysts, on average, had expected a net loss of $.47 per share.

R&D spending for the quarter increased 37 percent to $15.8 million from $11.5 million, while SG&A expenses climbed 29 percent to $31.3 million from $24.3 million. Invitae ended the quarter with $101.4 million in cash and cash equivalents and $27.8 million in marketable securities.

After the close of the quarter, Invitae said it entered into a new financing arrangement for up to $200 million of debt and $5 million in equity from Oberland Capital. "We took $75 million at close and a portion of the proceeds were used to pay down our prior debt facility," Guyer said. With this new facility plus the cash on hand at the end of Q3, Invitae has approximately $150 million in cash in a pro forma basis and access to another $125 million from the debt facility.

Based on the strength of its financial performance during Q3, Invitae said it is raising its annual revenue guidance to between $140 million and $145 million. The company had previously projected annual revenues in the range of $135 million to $140 million for 2018. The company also said it now expects to test more than 285,00 samples, instead of more than 275,00 samples as previously projected.

Invitae's shares were down approximately 7 percent to $13.42 in Thursday morning trading on the Nasdaq.