Post by luxetvox on Feb 6, 2024 13:17:49 GMT
SoftBank-Backed Medical Genetics Company Invitae Prepares for Bankruptcy - Update
2024-02-05 21:29:42.753 GMT
By Soma Biswas
(Wall Street Journal) -- Invitae, a medical genetics company that received
backing from SoftBank Group at the height of the pandemic has hired
restructuring advisers and is preparing to file for bankruptcy within weeks,
according to people familiar with the matter.
The company is working with Moelis, FTI Consulting and law firm Kirkland &
Ellis to explore strategic options, including bankruptcy, to address $1.5
billion in debt on its balance sheet, the people said.
Once a high-flying biotech stock that was promoted by Cathie Wood's ARK
Investment, Invitae's market cap topped $7 billion in 2020, when its shares
reached over $50. Since then, Invitae's stock has tumbled to under $1. On
Monday the company's shares traded down to 9 cents.
Wood has called the company one of the most underappreciated stocks in her
portfolio that is one of the most important companies in the genomic
revolution.
Invitae's decline parallels the collapse in value of its more popular industry
peer 23andMe, a genetic testing company targeting consumers, that has seen its
market cap shrink from $6 billion in 2021 to nearly zero.
Invitae raised $1.2 billion in convertible debt from SoftBank in 2021,
planning to use the proceeds primarily to acquire assets, the company has
said. SoftBank remains an investor in the company, according to the people.
Invitae declined to comment on Monday. SoftBank and ARK didn't respond to
requests for comment.
San Francisco-based Invitae, which has been on an acquisition spree in recent
years, has started to shed some assets and cut costs, the company has said.
In January, Invitae said it sold its reproductive health business for $52.5
million, and in December it sold the Ciitizen patient data business for an
undisclosed sum. The company had acquired Ciitizen in 2021 for $325 million in
cash and shares.
The company, which hasn't turned a profit since its inception in 2013,
estimates that it burned over $220 million in cash last year, according to
earnings reports. Invitae reported $267 million in cash as of the end of
September.
2024-02-05 21:29:42.753 GMT
By Soma Biswas
(Wall Street Journal) -- Invitae, a medical genetics company that received
backing from SoftBank Group at the height of the pandemic has hired
restructuring advisers and is preparing to file for bankruptcy within weeks,
according to people familiar with the matter.
The company is working with Moelis, FTI Consulting and law firm Kirkland &
Ellis to explore strategic options, including bankruptcy, to address $1.5
billion in debt on its balance sheet, the people said.
Once a high-flying biotech stock that was promoted by Cathie Wood's ARK
Investment, Invitae's market cap topped $7 billion in 2020, when its shares
reached over $50. Since then, Invitae's stock has tumbled to under $1. On
Monday the company's shares traded down to 9 cents.
Wood has called the company one of the most underappreciated stocks in her
portfolio that is one of the most important companies in the genomic
revolution.
Invitae's decline parallels the collapse in value of its more popular industry
peer 23andMe, a genetic testing company targeting consumers, that has seen its
market cap shrink from $6 billion in 2021 to nearly zero.
Invitae raised $1.2 billion in convertible debt from SoftBank in 2021,
planning to use the proceeds primarily to acquire assets, the company has
said. SoftBank remains an investor in the company, according to the people.
Invitae declined to comment on Monday. SoftBank and ARK didn't respond to
requests for comment.
San Francisco-based Invitae, which has been on an acquisition spree in recent
years, has started to shed some assets and cut costs, the company has said.
In January, Invitae said it sold its reproductive health business for $52.5
million, and in December it sold the Ciitizen patient data business for an
undisclosed sum. The company had acquired Ciitizen in 2021 for $325 million in
cash and shares.
The company, which hasn't turned a profit since its inception in 2013,
estimates that it burned over $220 million in cash last year, according to
earnings reports. Invitae reported $267 million in cash as of the end of
September.