💥New Chapter 11 Bankruptcy Filing - Invitae Corporation💥
Medical Genetics Company files with plan to sell its assets in bankruptcy.
On February 13, 2024, Invitae Corporation ($NVTA) and five affiliates (collectively, the “debtors”) filed chapter 11 bankruptcy cases in the District of New Jersey (Judge Kaplan) — breaking a recent string of filings in the District of Delaware (InVivo Therapeutics Corporation, NanoString Technologies Inc., Cano Health Inc., Burgess BioPower LLC, and Sientra Inc.). Go Garden State!
Invitae is a medical genetics company in the business of delivering genetic testing services, digital health solutions, and health data services; its genetic testing across multiple clinical areas is meant to arm healthcare providers with data that can assist patient understanding of their particular health risks and develop care strategies to deal with them. More than 4.4mm individual patients have taken Invitae’s tests and — ⚡️this is sort of amazing in an age of increased focus on data security ⚡️— 2.2mm of these patients have made test results available for sharing through digital health platforms and clinical data services that provide researchers with crucial data for the potential development of effective medical treatments. You can sort of see why Cathie Wood would be so intrigued by all of this (ARK Investment Management LLC is the company’s largest equity holder at just over 11%).
Once you get past the razzle dazzle of “genetics testing” and “big data,” you arrive at a company that spent a number of years gobbling up other companies, an acquisition spree that folded in multiple pre-commercial enterprises under the Invitae umbrella and saddled the company with over $1.5b of debt. Integrating these businesses was tough enough but then inflation reared its ugly head and the company’s overall costs ballooned and hindered the company’s access to capital markets.
So in the beginning of ‘22, the company be like: