Grew volume by more than 300% year over year, secured Medicare reimbursement and multiple private payer contracts, expanded test menu with more than 1,000 genes in production, lowered COGS
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Invitae Corporation (NYSE: NVTA), a genetic information company, today announced financial and operating results for the first quarter ended March 31, 2016. The company executed on all four of its key metrics, including important progress on reimbursement.
“We made significant strides on reimbursement early this year with payments initiated from Medicare, as well as new contracts with several Blue Cross Blue Shield regional plans,” said Randy Scott, chairman and CEO of Invitae. “We believe this is just the start of a major transition in the payer industry toward more affordable and accessible genetic testing, resulting from major advances in DNA sequencing technology and the rapid adoption of multi-gene panels into clinical guidelines and medical practice.”
The company reported total revenue of $4.0 million in the first quarter of 2016, compared to $1.2 million in the first quarter of 2015. Operating expenses, excluding the costs of tests delivered, were $23.3 million compared to $16.6 million for the first quarter of 2015. Net loss was $25.6 million in the first quarter of 2016, or a $0.80 loss per share. Also included in our operating expenses were non-cash expenses of approximately $3.7 million, including depreciation, equity compensation, and non-cash rent expense for its new lab facility, which the company expects to occupy later this year.
At March 31, 2016, cash, cash equivalents, restricted cash, and marketable securities totaled approximately $108.7 million.
Following are recent highlights:
“We’re excited to continue increasing the number of people we can serve who suffer from genetic conditions, and we believe our high quality, comprehensive, affordable offering will continue to put us in a strong position to serve as the partner of choice for inherited genetic testing and associated services,” said Sean George, president and COO of Invitae. “We will continue executing against our core measures of success with the goal of exiting the year as a leader in the medical genetic testing markets, demonstrating the strength of our core strategy and capabilities and showing a clear path to positive cash flow with the continued success of our business model.”
Indicators of our Success in 2016
The four guiding indicators of success in 2016 include:
Conference Call Details
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 92101487.
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 Corporation's (NYSE: NVTA) mission is to bring comprehensive genetic information into mainstream medical practice to improve the quality of healthcare for billions of people. 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 and panel tests today. The company currently provides a diagnostic service comprising hundreds of genes for a variety of genetic disorders associated with oncology, cardiology, neurology, pediatrics, and other rare disease areas.
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 its reimbursement history is the start of a major transition in the payer industry to more affordable and accessible genetic testing; the timing of its occupation of its new lab facility; the company’s expectations that it will continue to increase the number of people it serves and that it will be in a strong position to be the partner of choice for inherited genetic testing and associated services; 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 2015. 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.
Source: Invitae Corporation