Following rumors of imminent bankruptcy, plummeting stock prices, and subsequent trading suspension and delisting on the New York Stock Exchange, Invitae has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey.
In a statement posted on Invitae’s website, the firm said that it is seeking the court’s approval to use the cash it currently has on hand to fund the case and continue business operations. Furthermore, the firm said it is “working to execute an efficient and value-maximizing sale process with the support of its senior noteholders.”
In a court filing, Invitae said that its estimated assets were in the $500 million to $1 billion range; its liabilities were in the $1 billion to $10 billion range.
Invitae recently transferred its health tech platform Ciitizen to a new entity created by the Ciitizen leadership team in December. In January, the firm sold reproductive health assets, including its noninvasive prenatal and carrier screening, to Natera.
The firm has been implementing extensive restructuring plans since 2022 that have led to layoffs, leadership changes, and operations consolidation.
"We have been working diligently over the past eighteen months to improve our cash position by realigning our portfolio and focusing on our most impactful business lines," Ken Knight, Invitae’s president and CEO, said in the company’s statement.
"These strategic initiatives have accelerated our path to positive cash flow in order to realize our potential as an industry-leading genetics platform. However, we still need to address the company's debt position through these chapter 11 proceedings. I want to thank our incredibly talented and hard-working employees for their continued focus on our patients and customers," Knight stated.
The company noted that additional information about its chapter 11 case may be found on the website of its legal counsel Kirkland & Ellis LLP.
