Invitae

Empowering a lifetime of health through genetic data

There are upwards of 77,000 genetic tests in use today, costing patients anywhere from under $100 to thousands of dollars. Although insights from these genetic tests are certainly helping medical practitioners to make more informed healthcare decisions for their patients, realizing the full potential of patient data has been limited because of the current industry setup. Genetic testing primarily operates as a lab-based industry on a sample-by-sample basis. This has restrained patient genomic data from more comprehensively influencing decisions across the individual patient’s medical care and patient populations. Invitae aims to be at the forefront of healthcare modernization by transforming genetic testing into an information industry so that genetic data can be easily accessed to make personalized healthcare decisions at each stage of the patient's life. 

Invitae operates on four core principles:

• Patients should own and control their genetic data

• Healthcare professionals should be involved in test ordering and data interpretation

• Driving down the cost of genetic information is beneficial for its utilization

• Sharing genetic information magnifies its value

Invitae’s ultimate goal is to build a patient data network whereby individuals and partners can access and aggregate data to generate collective insights for enhanced outcomes. An individual patient test should improve health decisions for the patients themself, their families, and others in the healthcare ecosystem. Invitae’s patient data ecosystem is growing by the day and already contains information from over 2.2 million patients who have agreed to data sharing. To support this project, Invitae has formed strategic partnerships with over 100 leading biopharmaceutical companies to support research initiatives, as well as patient recruitment and diagnosis. The company coordinates with leading health systems like Mayo Clinic, Cleveland Clinic, and Geisinger Health System. 

Operational overview 

Invitae has financed its operations through customer collections, stock proceeds, and debt facility borrowings. The company’s primary source of revenue has been the test reports from its diagnostic assays, which have grown to generate over half a billion dollars in revenue per annum. Even though Invitae has earned revenue from genetic testing for nearly a decade, the company has incurred substantial losses, with its most recent accumulated deficit listed at $4.8 billion. However, the company is taking steps towards improving its balance sheet and profitability potential by engaging in a strategic realignment to reduce its headcount considerably. 

Conclusion

Despite the backing of major funds like ARK Invest, Vanguard, and BlackRock, Invitae has some challenges to overcome. The market for genetic testing and consulting services is extremely competitive. Some companies operating in the space, like Quest Diagnostics, have superior financial resources, experience, and customer bases compared to Invitae. Furthermore, Invitae is undergoing a litigation battle for potential intellectual property infringement with its direct competitor, Natera. 

Headwinds aside, Invitae is still one of the most exciting companies operating in genetic testing and healthcare information. The company’s vision and progress toward personalized healthcare based on high-quality genomic data could dramatically improve patient outcomes. Furthermore, Invitae’s patient data ecosystem could assist other biopharmaceutical companies in more effectively developing therapies and lower healthcare costs. Invitae is well-positioned to lead the charge into a future where medical practitioners are better equipped to serve patients and improve human longevity.