Invitae Double Deal Day: Genomics Buyout and $ 1.2 Billion in SoftBank Led Funding
It has been a busy day for Invitae. The genetic testing provider signed a $ 200 million buyout and made a significant investment from a group of funders brought together by SoftBank.
At what point? $ 1.15 billion, enough to secure a few more deals like the one announced on Monday.
The company has signed a $ 200 million deal for lab sequencing and software developer Genosity, but, with its new capital to spend, it probably doesn’t sweat the upfront cost.
Led by the subsidiary of SoftBank SB Management, the $ 1.15 billion notes will mature in April 2028, bearing interest at 1.5% per annum. With an initial conversion price of $ 43.18 per share, they represent a 20% premium over a five-day average through the end of March, the companies said.
The investment will help Invitae expand its platforms and services, including “both through internal development and the addition of complementary businesses and technologies,” co-founder and CEO Sean George said in a statement. . Release. The company’s shares rose more than 7% after the news broke before closing at just over $ 40.
“Invitae definitely has a head start in the rapidly expanding clinical genetic sequencing market,” said SB Management CEO Akshay Naheta, adding that its range of diagnostics could also help discover how genomics can predispose populations. to certain diseases.
The company hopes to maintain this lead by absorbing Genosity to facilitate access to personalized cancer screening tests. The deal includes roughly $ 120 million in cash and the remainder in Invitae common stock, and is expected to close before the end of June.
Genosity provides tools and services for clinical research applications, such as technology platforms for the study of somatic and germline mutations, for the development of complex sequencing-based assays aimed at disentangling the composition of different cancers.
Invitae previously worked with Genosity on several clinical trials, and the companies plan to move forward together on three oncology projects currently under development, including planned centralized lab services and distributable diagnostic kits.
One of the tests, Invitae’s Personalized Cancer Monitoring Platform, which previously received a breakthrough designation from the FDA, is an in vitro diagnostic designed to analyze samples from a patient’s tumor and then use information to create an individualized blood test to screen for recurrence.
“Every cancer is unique. The way we diagnose and treat it must be too”, noted Invitae Chief Medical Officer Robert Nussbaum, MD “Our goal is to move as quickly as possible toward the day that every cancer patient receives timely comprehensive genetic information that is used to guide their care, from diagnosis to follow-up. disease recurrence. “