Invitae, a company in medical genetics, announced the completion of its reproductive health assets sale to Natera. This transaction, valued at up to $52.5 million, includes cash, milestone payments, and litigation credits. The assets sold to Natera involve carrier screening and non-invasive prenatal screening services.

Ken Knight, President and CEO of Invitae, stated: “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.” Invitae expects the sale to reduce its operating expenses significantly, with an anticipated annualized operating expense cash savings of about $44 million, excluding one-time payments related to severance.

Invitae faces financial difficulties, as reported by Reuters on February 5, 2024. The company is considering filing for bankruptcy within weeks, with its shares dropping 69% to a new low. Despite these challenges, Invitae has not commented on market rumors but has acknowledged the formation of a special committee by its Board of Directors to improve its capital structure. The company is exploring strategic options, including bankruptcy, to manage $1.5 billion of debt. Invitae has expressed concerns about its ability to continue operations without securing additional funding or addressing its debt obligations.

The sale to Natera also includes transferring Invitae’s reproductive health sales representatives and customers to Natera, aiming for a smooth transition of services. This move is part of Invitae’s strategy to manage its financial situation and focus on its strengths.

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