Invitae, a medical genetic testing firm, has filed for Chapter 11 chapter and intends to proceed the case with out disrupting operations utilizing money readily available and whereas in search of to promote its enterprise.  

The San Francisco-based firm is in search of approval from the U.S. Chapter Court docket for the District of New Jersey to make use of its money readily available to fund the case. 

In its bankruptcy petition, the corporate listed belongings of $500 million to $1 billion however liabilities of $1 billion to $10 billion. 

“We’ve got been working diligently over the previous eighteen months to enhance our money place by realigning our portfolio and specializing in our most impactful enterprise traces,” Ken Knight, president and chief government officer of Invitae, mentioned in a press release. 

“These strategic initiatives have accelerated our path to constructive money movement so as to notice our potential as an industry-leading genetics platform. Nevertheless, we nonetheless want to handle the corporate’s debt place by these Chapter 11 proceedings. I wish to thank our extremely proficient and hard-working staff for his or her continued give attention to our sufferers and clients.” 

THE LARGER TREND

Invitae went public in early 2015, initially itemizing on the NASDAQ for $17.80 per share. In 2020, the inventory reached a excessive of $56.60 per share, the very best it is seen since being listed.

In 2021, Invitae introduced it signed a definitive settlement to amass Ciitizen, a startup that helps customers entry and manage their well being data, for about $325 million. The phrases of the deal included round $125 million in money and roughly 7,070,000 shares of Invitae frequent inventory. 

Invitae relayed on the time that it could additionally problem about $226 million in restricted inventory models to new staff who be a part of the corporate as a part of the acquisition.

The corporate had two rounds of layoffs between 2022 and 2023 so as to lower prices and, final yr, divested Ciitizen, which it mentioned would save an estimated $90 to $100 million per yr. 

The corporate’s stock price has plummeted and closed at $0.019 a share as of at present.

Final week, the New York Inventory Change announced it was starting the method of delisting the corporate’s shares because of the inventory being at “abnormally low worth ranges.” 

Since rising in the marketplace in 2012, the genetic take a look at maker had but to show a revenue, and in 2023, reported greater than a $1.34 billion internet loss for the primary 9 months of the yr. 

“AI and Healthcare: Bridging the Hole Between Magic and Phantasm” is scheduled for Monday, March 11, 8:45-9:15 a.m. ET in WF3 and three:45-4:30 p.m. ET in W230A at HIMSS24 in Orlando. Learn more and register.