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Invitae More Than Doubles Q2 Revenues

NEW YORK (GenomeWeb) – Invitae reported after the close of the market on Monday that its second quarter revenues more than doubled year over year, beating the consensus Wall Street estimate.

The San Francisco-based genetic testing firm posted revenues of $14.3 million for the three-month period ended June 30, compared with $5.6 million for the second quarter of 2016. Analysts' consensus estimate for the quarter was $13.3 million.

Invitae accessioned more than 30,500 samples for testing during the quarter, a 139 percent increase over Q2 2016. Its revenue per report in Q2 was $563, compared to $501 in Q1. The company also reduced its cost of goods sold per sample accessioned to $345 from $500 in Q2 last year.

Invitae's net loss for the quarter was $28.6 million, or $.66 per share, versus a loss of $24.8 million, or $.77 per share, for the year-ago quarter. Analysts, on average, had expected a loss per share of $.62.

The firm's R&D costs increased by 6 percent to $11.3 million from $10.7 million in Q2 2016, while its SG&A spending spiked 56 percent to $20.6 million from $13.2 million.

Invitae closed the quarter with $27.7 million in cash and cash equivalents, and $47.7 million in marketable securities.

Last week, the company said it had entered into a definitive agreement to sell $73.5 million of its stock in a private placement, the proceeds from which will be used for general corporate purposes and for growing the company's menu of tests in new markets through acquisitions. Toward that end, the company also said last week that it would expand its genetic test offerings into reproductive health through the purchase of Good Start Genetics and CombiMatrix. 

The Good Start acquisition closed last week, while the CombiMatrix acquisition is slated to close in two-to-four months. Invitae expects both companies to contribute positively to its revenues in two to three quarters. During an earnings call with analysts, Invitae highlighted that Good Start had revenues of $5.2 million and accessioned nearly 9,500 samples in the second quarter.

At the start of next year, after the closing of the CombiMatrix acquisition, a single, combined sales force of 100 reps will be marketing the breadth of Invitae's test menu. "What this is going to enable us to do is to further provide a really compelling offering in the ObGyn sector, which hasn't been a focus for us aside from opportunistically to date," said Katherine Stueland, Invitae's chief commercial officer, during the earnings call.

Stueland said that Invitae is continuing to ink partnerships with drug developers, most of which haven't been publicly disclosed. However, these collaborations are around supporting clinical trials and test access programs for marketed drugs, as well as identifying patients for studies within Invitae's database.

The firm retained its forecast for revenues between $55 million and $65 million for fiscal year 2017. The company had previously said it was well positioned to meet its goal of accessioning 110,000 to 120,000 samples in 2017. Now the company expects to accession 120,000 to 130,000 samples by year end, not factoring in any contributions from the companies Invitae recently acquired.