What You Should Know:
– Invitae (NYSE: NVTA), a medical genetics company, announced the completion of its sale of certain reproductive health assets, including carrier screening and non-invasive prenatal screening (NIPS), to Natera (NASDAQ: NTRA).
– The transaction is valued at up to $52.5M, comprised of cash, milestone payments, and litigation credits.
Streamlining Focus on Oncology and Rare Disease
This strategic move streamlines Invitae’s operations and allows them to focus their resources on their core strengths in clinical germline genetic information and advanced variant interpretation for oncology and rare disease patients.
“Today’s announcement further helps us streamline operations and focus our resources on our strengths of clinical germline genetic information and superior variant interpretation in support of millions of oncology and rare disease patients,” said Ken Knight, President and CEO of Invitae.
Financial and Operational Benefits
The sale is expected to significantly reduce Invitae’s operating expenses. The company anticipates annualized cash savings of approximately $44M, excluding one-time severance payments. Additionally, Natera has hired Invitae’s reproductive health sales representatives, ensuring a smooth transition for customers. The proceeds from the sale can be used to further invest in Invitae’s core business and pursue strategic growth initiatives.
