Genetic Testing Company Invitae Files for Chapter 11 Bankruptcy amid Financial Struggles

Synopsis:

Invitae, a prominent genetic test maker, has filed for voluntary Chapter 11 bankruptcy protection in a U.S. bankruptcy court. The company, previously reported to be on the verge of bankruptcy, experiences a sharp decline in stock valuation amid the financial turmoil. Invitae seeks to pursue a sale process while ensuring its business operates as usual, funded using cash on hand as approved by the court. The company discloses its estimated assets are in the $500 million to $1 billion range, with liabilities falling between $1 billion and $10 billion, along with having 1,000-5,000 creditors. The turn of events comes after numerous cost-cutting measures, including layoffs and asset sales, as Invitae had never turned a profit in its decade of existence, with a reported net loss of more than $3.1 billion in 2022.

Invitae has engaged Kirkland & Ellis LLP as legal counsel, Moelis & Company LLC as investment banker, and FTI Consulting, Inc. as financial and communications advisor to navigate the bankruptcy and strategic initiatives. The company aims to continue serving customers and patients, meeting go-forward commitments to employees and vendors, and maintain its commitment to deliver innovative solutions.