Invitae sells reproductive health assets to Natera

Business Men Handshake Social

Invitae has completed the sale of some of its reproductive health assets, including carrier screening and noninvasive prenatal screening, to Natera.

The transaction is worth up to $52.5 million in cash, milestone payments, and litigation credits, Invitae said in a statement.

As part of the deal, Natera has hired Invitae reproductive health sales representatives; furthermore, Invitae will transfer its noninvasive prenatal screening and carrier screening customers to Natera.

The litigation credits are in reference to a patent-infringement suit filed by Natera against Invitae and its subsidiary ArcherDx. In December, the U.S. District Court for the District of Delaware issued a permanent injunction against Invitae and ArcherDx, ordering them to stop using products containing material patented by Natera; previously in May, a jury in the same district court awarded Natera $19.4 million in damages for royalties and lost profits in the suit.

In a form filed with the U.S. Securities and Exchange Commission, Invitae specified that Natera has made an upfront payment of $10 million in cash to Invitae and will make additional payments up to $42.5 million, which could include cash and/or credits in relation to the lawsuit damages (with a combined value of up to $20 million, which is the limit of liabilities from the suit that the agreement specifies) following entry of a “final, non-appealable order disposing of all claims in the suit,” as well as a “performance-based milestone cash payment” of up to $22.5 million.

In its statement, Invitae notes that the agreement will help in the firm’s efforts to significantly reduce its operating expenses; the company anticipates annual savings of approximately $44 million from the sale, excluding one-time severance related payments.

Page 1 of 11
Next Page