Qiagen will develop IVDs for use on Illumina's clinical sequencers and reported preliminary Q3 revenue growth of 3 percent at a constant exchange rate.
The San Francisco-based medical genetics firm generated $53.5 million in revenues in the second quarter, beating analysts' consensus estimate of $50.7 million.
Product sales from OEM customers were up 28 percent, while product sales from direct customers and distributors increased 27 percent, and other revenues grew sharply.
The company said it has faced competitive pressures in its diagnostics business, partially offset by organizational streamlining efforts it initiated last year.
The company's revenues in the quarter rose to $221.9 million from $161.0 million in Q4 2017, but it missed the consensus Wall Street estimate of $245.3 million.
For the last three months of 2018, Invitae reported $45.4 million in revenues compared to $25.4 million in Q4 2017, beating the consensus Wall Street estimate.
The company will compete by continuing product improvements, ramping up marketing presence, and launching an app to improve doctor and consumer engagement.
The company's CEO noted softness in both its diagnostics and life science segment. The projected revenues would fall short of the consensus Wall Street estimate.
