Skip to main content
Premium Trial:

Request an Annual Quote

Leerink Upgrades Invitae to Outperform

NEW YORK (GenomeWeb) – Following Invitae's announcement earlier this week that its first quarter revenues rose sharply year over year, investment bank Leerink today upgraded shares of the company to an Outperform rating. 

Analyst Dan Leonard upgraded the San Francisco-based molecular diagnostics firm from a prior Market Perform rating but kept the price target on its shares at $20.

In a research note, Leonard said that Invitae, which reported its Q1 2015 revenues grew to $1.2 million from $118,000 in Q1 2014, has demonstrated continued commercial traction of its genetic testing business. He also said that Invitae remains on target with a planned expansion of its content. 

While new entrants into the genetic testing space, such as just-launched Color Genomics, is inevitable, "we think the genetic testing market is capable of supporting multiple players." He added that the market addressed by Invitae, hereditary syndromes, "could be massive. … One could envision large portions of the developed world's population as target customers."

Leonard also said because Invitae leverages existing and clinically proven biomarkers for its test, rather than developing products from the ground up with newly discovered biomarkers, Invitae stands a better chance of adoption by clinicians and payors. 

Lastly, he noted differentiating factors in Invitae's business model, including the company's plan to consolidate all existing gene tests into one product, which will lower the price for the product, "thus unlocking demand elasticity." 

In afternoon trading on the New York Stock Exchange Invitae's shares were up 13 percent at $14.02.

The Scan

Tara Pacific Expedition Project Team Finds High Diversity Within Coral Reef Microbiome

In papers appearing in Nature Communications and elsewhere, the team reports on findings from the two-year excursion examining coral reefs.

Study Examines Relationship Between Cellular Metabolism, DNA Damage Repair

A new study in Molecular Systems Biology finds that an antioxidant enzyme shifts from mitochondria to the nucleus as part of the DNA damage response.

Stem Cell Systems Target Metastatic Melanoma in Mouse Model

Researchers in Science Translational Medicine describe a pair of stem cell systems aimed at boosting immune responses against metastatic melanoma in the brain.

Open Pediatric Brain Tumor Atlas Team Introduces Genomic Data Collection, Analytical Tools

A study in Cell Genomics outlines open-source methods being used to analyze and translate whole-genome, exome, and RNA sequence data from the Pediatric Brain Tumor Atlas.