SAN FRANCISCO, Nov. 7, 2018 /PRNewswire/ -- Invitae
Corporation (NYSE: NVTA), one of the fastest growing genetics
companies, today announced financial and operating results for the
third quarter ended September 30,
2018. Based on progress in the quarter, Invitae is raising
its volume guidance from more than 275,000 samples to more than
285,000 samples and raising its revenue guidance from between
$135 and $140
million to between $140 and
$145 million in 2018.
"We have had another strong quarter of growth and execution,
building momentum among our expanding base of customers," said
Sean George, co-founder and chief
executive officer of Invitae. "In addition to the volume and
revenue growth, we achieved our goal of reducing cash burn by
nearly 50% from the first quarter of this year. With access to more
than $250 million in capital, we are
well positioned to continue to grow the business as we emerge as a
leading provider and partner of choice in genetics."
Third Quarter 2018 Results
- Accessioned approximately 78,000 samples in the third quarter
of 2018, representing a 95% increase over the 40,000 samples in the
third quarter of 2017
- Generated revenue of $37.4
million in the third quarter of 2018, representing a 106%
increase over the third quarter of 2017 revenue of $18.1 million
- Reduced the average cost per sample to approximately
$260 in the third quarter of 2018,
representing a 21% reduction from an approximate $330 average cost per sample in the third quarter
of 2017
- Achieved positive gross profit of $16.9
million in the third quarter of 2018 compared to nearly
$5.0 million gross profit in the
third quarter of 2017
Total operating expenses for the third quarter of 2018,
excluding cost of goods sold, were $47.0
million compared to $35.9
million in the third quarter of 2017. For the third quarter
of 2018, Invitae reported a net loss of $31.7 million, or a $0.45 loss per share, compared to a net loss of
$27.4 million in the third quarter of
2017, or a $0.57 loss per share.
At September 30, 2018, cash, cash
equivalents, restricted cash and marketable securities totaled
$134.6 million. Net increase in cash,
cash equivalents and restricted cash for the quarter was
$52.6 million, with cash burn for the
quarter at $18.4 million.
Corporate & Scientific Highlights
- Closed equity financing of $59.0
million in net proceeds in the quarter
- Subsequent to the quarter close, we entered into new financing
arrangements for up to $200 million
in debt and $5 million in equity from
funds managed by Oberland Capital
- Notified of agreement to receive payments from Medicare for
Lynch syndrome analysis (CPT code 81436)
- Continued growing our biopharma and patient advocacy network
with the expansion of the company's partnership with Alnylam
Pharmaceuticals to provide genetic testing at no cost to patients
through the Alnylam Act® program for individuals
who may carry gene mutations associated with primary hyperoxaluria,
an ultra-rare genetic disorder affecting the kidneys that most
often presents in childhood
- Presented findings at annual American Society of Human Genetics
meeting, showing proactive genetic testing identifies medically
significant findings for 16.5% of healthy individuals, adding to a
growing body of evidence showing expanding clinical genetic testing
to people without identified risks could be beneficial
- Announced the appointment of Chitra
Nayak to the company's Board of Directors, noting her
considerable track record of helping companies achieve
transformational growth to scale and innovate globally
Webcast and Conference Call Details
Management will
host a conference call and webcast today at 4:30 p.m. Eastern / 1:30
p.m. Pacific to discuss financial results and recent
developments. The dial-in numbers for the conference call are (866)
393-4306 for domestic callers and (734) 385-2616 for international
callers, and the reservation number for both is 9887569. Following
prepared remarks, management will respond to questions from
investors and analysts, subject to time limitations.
The live webcast of the call may be accessed by visiting the
investors section of the company's website at ir.invitae.com. A
replay of the webcast will be available shortly after the
conclusion of the call and will be archived on the company's
website.
About Invitae
Invitae Corporation (NYSE: NVTA) is a
genetics company whose mission is to bring comprehensive genetic
information into mainstream medicine to improve healthcare for
billions of people. Invitae's goal is to aggregate most of the
world's genetic tests into a single service with higher quality,
faster turnaround time and lower prices.
Safe Harbor Statement
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
relating to the company's future financial performance and
estimated guidance for 2018; and the company's belief that it is
building momentum with its expanding base of customers, and that it
is well positioned to continue to grow the business as it emerges
as a leading provider and partner of choice in genetics.
Forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially, and reported
results should not be considered as an indication of future
performance. These risks and uncertainties include, but are not
limited to: the company's actual 2018 results; the company's
history of losses; the company's ability to compete; the company's
failure to manage growth effectively; the company's need to scale
its infrastructure in advance of demand for its tests and to
increase demand for its tests; the risk that the company may not
obtain or maintain sufficient levels of reimbursement for its
tests; the company's failure to successfully integrate or fully
realize the anticipated benefits of acquired businesses; the
company's ability to use rapidly changing genetic data to interpret
test results accurately and consistently; security breaches, loss
of data and other disruptions; laws and regulations applicable to
the company's business; and the other risks set forth in the
company's filings with the Securities and Exchange Commission,
including the risks set forth in the company's Quarterly Report on
Form 10-Q for the quarter ended June 30,
2018. These forward-looking statements speak only as of the
date hereof, and Invitae Corporation disclaims any obligation to
update these forward-looking statements.
Non-GAAP Financial Measures
To supplement Invitae's consolidated financial statements prepared
in accordance with generally accepted accounting principles in
the United States (GAAP), the
company monitors and considers cash burn, which is a non-GAAP
financial measure. This non-GAAP financial measure is not based on
any standardized methodology prescribed by GAAP and is not
necessarily comparable to similarly-titled measures presented by
other companies. Cash burn excludes (1) changes in marketable
securities other than investments made in privately held companies,
(2) cash received from equity financings, (3) cash received from
loan proceeds, and (4) cash received from exercises of
acquisition-related warrants. Management believes cash burn is a
liquidity measure that provides useful information to management
and investors about the amount of cash consumed by the operations
of the business. A limitation of using this non-GAAP measure is
that cash burn does not represent the total change in cash, cash
equivalents, and restricted cash for the period because it excludes
cash provided by or used for other operating, investing or
financing activities. Management accounts for this limitation by
providing information about its operating, investing and financing
activities in the statements of cash flows in its consolidated
financial statements in its most recent Quarterly Report on Form
10-Q and Annual Report on Form 10-K and by presenting net cash
provided by (used in) operating, investing and financing activities
as well as the net increase in cash, cash equivalents and
restricted cash in its reconciliation of cash burn. In addition,
other companies, including companies in the same industry, may not
use cash burn, may calculate cash burn in a different manner than
management or may use other financial measures to evaluate their
performance, all of which could reduce the usefulness of cash burn
as a comparative measure.
Because of these limitations, cash burn should not be considered
in isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. Investors are encouraged to
review the reconciliation of net increase in cash, cash equivalents
and restricted cash to cash burn provided in the table below.
INVITAE
CORPORATION
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations
|
(In thousands,
except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenue:
|
|
|
|
|
|
|
|
Test
revenue
|
$
36,611
|
|
$
17,310
|
|
$
100,014
|
|
$
40,597
|
Other
revenue
|
755
|
|
838
|
|
2,329
|
|
2,225
|
Total
revenue
|
37,366
|
|
18,148
|
|
102,343
|
|
42,822
|
Costs and operating
expenses:
|
|
|
|
|
|
|
|
Cost of test
revenue
|
20,441
|
|
13,274
|
|
58,964
|
|
33,093
|
Research and
development
|
15,776
|
|
11,502
|
|
46,926
|
|
32,864
|
Selling and
marketing
|
17,591
|
|
13,246
|
|
55,222
|
|
37,338
|
General and
administrative
|
13,668
|
|
11,102
|
|
37,884
|
|
25,915
|
Total costs and
operating expenses
|
67,476
|
|
49,124
|
|
198,996
|
|
129,210
|
Loss from
operations
|
(30,110)
|
|
(30,976)
|
|
(96,653)
|
|
(86,388)
|
Other income
(expense), net
|
231
|
|
(56)
|
|
2,066
|
|
(596)
|
Interest
expense
|
(1,844)
|
|
(1,128)
|
|
(4,927)
|
|
(2,517)
|
Net loss before
taxes
|
(31,723)
|
|
(32,160)
|
|
(99,514)
|
|
(89,501)
|
Income tax
benefit
|
-
|
|
(4,758)
|
|
-
|
|
(6,614)
|
Net loss
|
$
(31,723)
|
|
$
(27,402)
|
|
$
(99,514)
|
|
$
(82,887)
|
Net loss per share,
basic and diluted
|
$
(0.45)
|
|
$
(0.57)
|
|
$
(1.56)
|
|
$
(1.86)
|
Shares used in
computing net loss per share, basic and diluted
|
70,152,804
|
|
48,221,896
|
|
63,935,336
|
|
44,639,416
|
INVITAE
CORPORATION
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
101,419
|
|
$
12,053
|
Marketable
securities
|
27,760
|
|
52,607
|
Accounts
receivable
|
25,488
|
|
10,422
|
Prepaid expenses and
other current assets
|
12,659
|
|
11,599
|
Total current
assets
|
167,326
|
|
86,681
|
Property and
equipment, net
|
29,287
|
|
30,341
|
Restricted
cash
|
5,006
|
|
5,406
|
Marketable
securities, non-current
|
367
|
|
5,983
|
Intangible assets,
net
|
31,725
|
|
35,516
|
Goodwill
|
47,233
|
|
46,575
|
Other
assets
|
3,456
|
|
576
|
Total
assets
|
$
284,400
|
|
$
211,078
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
8,044
|
|
$
8,606
|
Accrued
liabilities
|
24,821
|
|
22,742
|
Capital lease
obligation, current portion
|
1,857
|
|
2,039
|
Debt, current
portion
|
8,135
|
|
—
|
Total current
liabilities
|
42,857
|
|
33,387
|
Capital lease
obligation, net of current portion
|
1,923
|
|
3,373
|
Debt, net of current
portion
|
50,354
|
|
39,084
|
Other long-term
liabilities
|
9,871
|
|
13,440
|
Total
liabilities
|
105,005
|
|
89,284
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
7
|
|
5
|
Accumulated other
comprehensive loss
|
(46)
|
|
(171)
|
Additional paid-in
capital
|
666,305
|
|
520,558
|
Accumulated
deficit
|
(486,871)
|
|
(398,598)
|
Total stockholders'
equity
|
179,395
|
|
121,794
|
Total liabilities and
stockholders' equity
|
$
284,400
|
|
$
211,078
|
|
The condensed
consolidated balance sheet at December 31, 2017 has been derived
from the audited consolidated financial statements at that date
included in the company's annual report on Form 10-K for the year
ended December 31, 2017.
|
INVITAE
CORPORATION
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
2018
|
|
2017
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$ (99,514)
|
|
$ (82,887)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
10,268
|
|
5,876
|
Stock-based
compensation
|
15,711
|
|
14,387
|
Amortization of debt
issuance costs
|
681
|
|
326
|
Amortization of
premium on marketable securities
|
9
|
|
108
|
Impairment
losses
|
1,883
|
|
—
|
Loss on disposal of
assets
|
—
|
|
268
|
Loss on sales of
available-for-sale securities
|
24
|
|
—
|
Remeasurements of
liabilities associated with business combinations
|
593
|
|
556
|
Benefit from income
taxes
|
—
|
|
(6,614)
|
Changes in operating
assets and liabilities net of effects of business
combination:
|
|
|
|
Accounts
receivable
|
(4,483)
|
|
(1,801)
|
Prepaid expenses and
other current assets
|
(1,060)
|
|
1,761
|
Other
assets
|
(555)
|
|
(45)
|
Accounts
payable
|
(1,226)
|
|
1,278
|
Accrued expenses and
other liabilities
|
922
|
|
61
|
Net cash used in
operating activities
|
(76,747)
|
|
(66,726)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of
marketable securities
|
(1,575)
|
|
(94,563)
|
Proceeds from sales
of marketable securities
|
19,965
|
|
—
|
Proceeds from
maturities of marketable securities
|
10,957
|
|
52,918
|
Acquisition of
businesses, acquired cash
|
—
|
|
1,489
|
Purchases of property
and equipment
|
(4,258)
|
|
(4,115)
|
Other
|
(500)
|
|
—
|
Net cash provided by
(used in) in investing activities
|
24,589
|
|
(44,271)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from public
offerings of common stock, net of issuance costs
|
112,480
|
|
—
|
Proceeds from
issuance of common stock
|
10,732
|
|
71,687
|
Proceeds from loan
and security agreement
|
19,544
|
|
39,661
|
Loan
payments
|
—
|
|
(30,457)
|
Capital lease
principal payments
|
(1,632)
|
|
(2,153)
|
Net cash provided by
financing activities
|
141,124
|
|
78,738
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
88,966
|
|
(32,259)
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
17,459
|
|
71,522
|
Cash, cash
equivalents and restricted cash at end of period
|
$ 106,425
|
|
$
39,263
|
INVITAE
CORPORATION
|
|
|
|
|
|
|
Reconciliation of
Net Increase in Cash, Cash Equivalents and Restricted Cash to Cash
Burn
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
2018
|
|
June 30,
2018
|
|
September 30,
2018
|
Net cash used in
operating activities
|
$
(32,902)
|
|
$
(25,765)
|
|
$
(18,080)
|
Net cash provided by
(used in) investing activities
|
19,947
|
|
(1,888)
|
|
6,530
|
Net cash provided by
financing activities
|
19,345
|
|
57,679
|
|
64,100
|
Net increase in cash,
cash equivalents and restricted cash
|
6,390
|
|
30,026
|
|
52,550
|
Adjustments:
|
|
|
|
|
|
Purchases of
investments
|
(225)
|
|
(675)
|
|
(675)
|
Sales of
investments
|
(19,965)
|
|
-
|
|
-
|
Maturities of
investments
|
(2,078)
|
|
-
|
|
(8,879)
|
Purchases of
investments in privately held companies
|
225
|
|
675
|
|
675
|
Proceeds from public
offering of common stock, net of issuance costs
|
-
|
|
(53,480)
|
|
(59,000)
|
Proceeds from loan
and security agreement
|
(19,792)
|
|
11
|
|
237
|
Proceeds from
exercises of acquisition-related warrants
|
(191)
|
|
(3,083)
|
|
(3,277)
|
Cash burn
|
$
(35,636)
|
|
$
(26,526)
|
|
$
(18,369)
|
Contact:
Laura D'Angelo
ir@invitae.com
(628) 213-3369
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