On November 8, 2021 Invitae (NYSE: NVTA), a leading medical genetics company, reported financial and operating results for the third quarter ended September 30, 2021 (Press release, Invitae, NOV 8, 2021, View Source [SID1234594728]).
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Invitae’s (NVTA) mission is to bring comprehensive genetic information into mainstream medical practice to improve the quality of healthcare for billions of people. www.invitae.com (PRNewsFoto/Invitae Corporation)
"Year-over-year growth continued at a fast pace in the third quarter as volumes remained strong across the platform," said Sean George, Ph.D., co-founder and CEO of Invitae. "In particular, progress in the oncology group is reflected in current volumes and preparations for high-value, high-margin product introductions over the coming year, supported by multiple ongoing studies. We saw continued progress in our data and platform services, underscored by the integration of Medneon and the Ciitizen technology platform that bolster our ability to collect, house and deliver benefits from patient data collected on their behalf. We look forward to continued robust volume growth in the coming periods as we introduce new testing capabilities and increase access to our lifelong testing and data platform."
Third Quarter 2021 Financial Results
Generated revenue of $114.4 million in the quarter, a more than 66% increase compared to $68.7 million in the same period in 2020.
Reported billable volume of 296,000 in the quarter, approximately 89% increase compared to 157,000 in the same period in 2020.
Reported average cost per billable unit of $296 in the quarter compared to $297 average cost per billable unit in the same period in 2020. Non-GAAP average cost per unit was $249 in the quarter.
Achieved gross profit for the third quarter of 2021 of $26.7 million, compared to $22.1 million in the same period in 2020. Non-GAAP gross profit was $40.7 million in the third quarter.
Total operating expense, which excludes cost of revenue, for the third quarter of 2021 was $220.0 million compared to $102.9 million in the same period in 2020. Non-GAAP operating expenses for the quarter was $201.8 million.
Net loss for the third quarter of 2021 was $198.2 million, or a $0.91 net loss per share, compared to a net loss of $102.9 million, or a $0.78 net loss per share, in the third quarter of 2020. Non-GAAP net loss for the quarter was $175.9 million, or a $0.81 non-GAAP net loss per share.
At September 30, 2021, cash, cash equivalents, restricted cash and marketable securities totaled $1.25 billion as compared with $1.54 billion as of June 30, 2021. Net increase in cash, cash equivalents and restricted cash for the quarter was $186.1 million. Cash burn was $286.0 million for the quarter. Cash burn for the quarter would have been $148.1 million excluding the cash paid for acquisitions, primarily related to the cash paid to acquire Medneon and Ciitizen.
Corporate and Scientific Highlights
Acquired patient-centric consumer health tech company Ciitizen to enhance Invitae’s platform by providing patients an easy-to-use, centralized hub for their genomic and clinical information, which together comprise a powerful dataset with the potential to drive research and improve healthcare decision-making.
Announced new data from the TRACERx lung cancer research collaboration. The data further validate the value of liquid biopsy as a less invasive and more comprehensive approach to guiding personalized cancer treatment. The data underscore previous findings from the TRACERx cohort that monitoring for cancer circulating tumor DNA (ctDNA) based minimal residual disease (MRD) detected relapse of non-small cell lung cancer (NSCLC) up to three years earlier than standard of care imaging surveillance in some instances.
Presented research demonstrating that genetic findings informed clinical management changes that led to improved seizure control and outcomes in the majority of epilepsy patients with actionable findings. The findings were presented in September at the National Society of Genetic Counselors 40th Annual Conference.
Outlook and Guidance
The company has adjusted its 2021 annual revenue guidance to $450 million – $475 million, or year-over-year revenue growth of between 60% and 70%. The change in revenue outlook was primarily due to greater than expected seasonal impact in Q3.
Webcast and Conference Call Details
Management will host a conference call and webcast today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time to discuss financial results and recent developments. To access the conference call, please register at the link below:
Upon registering, each participant will be provided with call details and a conference ID.
The live webcast of the call and slide deck may be accessed here or by visiting the investors section of the company’s website at ir.invitae.com. A replay of the webcast and conference call will be available shortly after the conclusion of the call and will be archived on the company’s website.