Company accelerates R&D and reports strong volume growth
Announces new pricing programs to make genetic testing more affordable and accessible
SAN FRANCISCO – Invitae Corporation (NYSE: NVTA) today reported financial and operating results for the first quarter ended March 31, 2015. Highlights for the quarter include:
In addition, Invitae is introducing new pricing programs for its tests for three customer segments:
“All of this progress has enabled us to implement our new pricing programs, which ultimately allow us to provide more customers with more affordable genetic tests and services,” said Randy Scott, chairman and CEO of Invitae. “With the infrastructure we have built, we believe we are well positioned to be one of the leading players in multiple markets, at multiple price points, serving a multi-billion dollar industry.”
The company reported total revenue of $1.2 million in the first quarter of 2015, compared to $118,000 in the first quarter of 2014. Total operating expenses for the first quarter of 2015 were $19.8 million, compared with $9.1 million for the first quarter of 2014. Net loss was $18.6 million in the first quarter of 2015, or a $1.09 loss per share.
At March 31, 2015, cash, cash equivalents, marketable securities and long-term investments totaled $194.3 million.
Indicators of our success in 2015
The four guiding indicators of success in 2015 include:
Conference call details
Invitae will host a live conference call and webcast today at 4:45 p.m. Eastern/1:45 p.m. Pacific to discuss financial results and highlights.
The dial-in numbers for the conference call are (877) 201-0168 for domestic callers and (647) 788-4901 for international callers, and the reservation number for both is 26346322.
The live, listen-only webcast of the conference call may be accessed by visiting the investors section of the company's website at ir.invitae.com. A replay of the webcast will be available shortly after the conclusion of the call and will be archived on the company's website.
Invitae’s (NYSE: NVTA) mission is to bring comprehensive genetic information into mainstream medical practice to improve the quality of healthcare for billions of people. Currently focused on hereditary cancers, Invitae’s goal is to aggregate most of the world’s genetic tests into a single service with higher quality, faster turnaround time and lower price than many single-gene tests today. The company currently provides a single diagnostic service comprising more than 200 genes for a variety of genetic disorders associated primarily with cancer, but also covering cardiology, hematology, neurology and pediatrics.
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the company’s belief that it can accelerate the adoption of comprehensive genetic information into mainstream medical care and realize its mission; the company’s expectations regarding the number of billable tests in 2015; the timing of any new testing service releases and the attributes of any such services; the company’s expectations regarding its average cost per billable test; the company’s beliefs regarding the benefits of its new pricing program; the attributes and benefits of the company’s genome management and genome network programs; and the indicators of the company’s success and its expected actions with respect to those indicators. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: the company’s history of losses; the company’s need to scale its infrastructure in advance of demand for its tests and to increase demand for its tests; the company’s ability to develop and commercialize new tests and expand into new markets; the risk that the company may not obtain or maintain sufficient levels of reimbursement for its tests; risks associated with the company’s ability to use rapidly changing genetic data to interpret test results accurately and consistently; the company’s ability to compete; laws and regulations applicable to the company’s business, including potential regulation by the Food and Drug Administration; and the other risks set forth in the company’s filings with the Securities and Exchange Commission, including the risks set forth in the company’s Annual Report on Form 10-K for the year ended December 31, 2014. These forward-looking statements speak only as of the date hereof, and Invitae Corporation disclaims any obligation to update these forward-looking statements.
NOTE: Invitae and the Invitae logo are trademarks of Invitae Corporation. All other trademarks and service marks are the property of their respective owners.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
|Three months ended|
|Costs and operating expenses:|
|Cost of revenue||3,199||611|
|Research and development||8,455||4,965|
|Selling and marketing||4,740||1,666|
|General and administrative||3,440||1,895|
|Total costs and operating expenses||19,834||9,137|
|Loss from operations||(18,605||)||(9,019||)|
|Other income (expense), net||(4||)||3|
|Net loss attributable to common stockholders||$||(18,637||)||$||(9,033||)|
|Net loss per share attributable to common stockholders, basic and diluted||$||(1.09||)||$||(12.06||)|
|Shares used in computing net loss per share attributable to common stockholders, basic and diluted||17,063,463||749,048|
Condensed Consolidated Balance Sheets
|March 31||December 31|
|Cash and cash equivalent||$||68,264||$||107,027|
|Prepaid expenses and other current assets||3,889||2,616|
|Total current assets||188,222||109,643|
|Property and equipment, net||18,180||15,672|
|Marketable securities, noncurrent||10,181||-|
|Liabilities and Stockholders’ Deficit|
|Capital lease obligation, current portion||1,428||1,524|
|Total current liabilities||9,653||7,623|
|Capital lease obligation, net of current portion||1,780||2,011|
|Other long term liabilities||412||401|
|Liabilities related to early exercise of stock options||11||14|
|Convertible preferred stock||-||202,305|
|Accumulated other comprehensive income||(26||)||-|
|Additional paid-in capital||310,199||1,604|
|Total stockholders’ deficit||206,359||(83,576||)|
|Total liabilities, convertible preferred stock and stockholders’ (deficit)||$||218,215||$||128,778|
The condensed, consolidated balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements at that date included in the company’s annual report on Form 10-K for the year ended December 31, 2014.
Source: Invitae Corporation.