Invitae Outlines Cost Saving Plan, Leadership Transition

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.

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