Prospectus supplement summary
This summary highlights certain information about us and this offering. Because it is a summary, it does not contain all of the information that you should
consider before investing. Before investing in our common stock, you should read this entire prospectus supplement and the accompanying prospectus carefully, including the Risk factors, and the financial statements and accompanying notes
and other information incorporated by reference in this prospectus supplement and the accompanying prospectus.
Our company
Our mission is to bring comprehensive genetic information into mainstream medical practice to improve the quality of healthcare for billions of people. Combining
genetic testing services that support patient care throughout lifes journeyfrom family planning, to proactive health screening, to inherited disease diagnosiswith a unique, rapidly expanding network of patients, healthcare
providers, biopharma and advocacy partners, we seek to capture the broad potential of genetics and expand its use across the healthcare continuum.
We
offer high quality, comprehensive, affordable genetic testing across multiple clinical areas, including hereditary cancer, cardiology, neurology, pediatrics, metabolic conditions and rare diseases. To augment our offering and realize our mission, we
have acquired multiple assets. We acquired four businesses in 2017 and in doing so expanded our suite of genome management offerings and completed our entry into prenatal and perinatal genetic testing.
In 2017, we established a leading position in family health genetic information services through the strategic acquisition of reproductive health testing
capabilities. In January 2017, we acquired AltaVoice, formerly PatientCrossroads, a patient-centered data company with a global platform for collecting, curating, coordinating and delivering safeguarded data from patients and clinicians. This
acquisition was complemented by the acquisition in June 2017 of Ommdom, Inc. and its product, CancerGene Connect, an
end-to-end
platform for collecting and managing
genetic family histories to deliver personalized genetic risk information. In August 2017, we acquired Good Start Genetics Inc., or Good Start, a molecular diagnostics company focused on preimplantation and carrier screening for inherited disorders.
In November 2017, we completed our acquisition of CombiMatrix Corporation, a company which specialized in prenatal diagnosis, miscarriage analysis and pediatric developmental disorders.
We have experienced rapid growth. For the years ended December 31, 2018, 2017 and 2016, our revenue was $147.7 million, $68.2 million and $25.0 million, respectively, and we incurred net losses
of $129.4 million, $123.4 million and $100.3 million, respectively. At December 31, 2018, our accumulated deficit was $516.7 million. To meet the demands of scaling our business, we increased our number of employees to 788
at December 31, 2018 from 594 on December 31, 2017. We grew our sales force to 128 at December 31, 2018 from 103 at December 31, 2017. We expect headcount will continue to increase in 2019 as we add to the team to support
anticipated growth.
Sales of our tests have grown significantly. In 2018, 2017 and 2016, we generated approximately 292,000, 145,000 and 57,000 billable
tests, respectively. Approximately 29% of the billable tests we performed in 2018 were billable to institutions and patients, and the remainder were billable to third-party payers. Many of the gene tests on our assays are tests for which private
insurers reimburse. However, when we do not have reimbursement policies or contracts with private insurers, our claims for reimbursement may be denied upon submission, and we must appeal the claims. The appeals process is time consuming and
expensive, and may not result in payment. Even if we are successful in achieving reimbursement, we may be paid at lower rates than if