- Invitae Corp NVTA plans to focus its resources on higher-margin and higher-growth businesses, including oncology, women's health, rare disease, and pharmacogenomics.
- It will also continue to integrate key digital health technologies and services.
- Alongside workforce reductions, Invitae will consolidate its global footprint to under a dozen international geographies where its testing business shows the potential to achieve positive cash flow in a shorter duration.
- It added that it intends to conduct an "orderly exit" from certain territories and countries where its business is more nascent.
- Invitae did not immediately disclose the magnitude of layoffs or specific geographies it will exit.
- Invitae also said it anticipates additional savings from workflow digitization, elimination of duplication, and streamlined processes across the core platforms.
- The company expects these changes to generate approximately $326 million in annual cost savings by 2023, enabling it to extend the cash runway to the end of 2024.
- Additionally, Invitae appointed Kenneth Knight, formerly chief operating officer, the firm's new CEO, and a board member.
- Invitae expects Q2 revenues of $136 million, shy of analysts' consensus of $142.7 million.
- The company forecasts a cash balance of approximately $737 million with a Q2 cash burn of approximately $150 million.
- For 2H FY22, Invitae expects flat revenues compared to 1H, representing a low double-digit growth rate for FY22 compared to FY21.
- Price Action: NVTA shares are down 10.11% at $2.40 during the premarket session on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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