A few weeks back, Invitae Corp’s shares (NVTA) have been in a downward trend. As of March 4, NVTA’s share value was worth $36.01; it has fallen over 6% since the start of the year. Some investors may find this decline a good opportunity to enter because invitae’s developments have great commercial potential.
With its expertise in genetic testing and diagnostics, Invitae is a pioneer in this field. The genomic data collected from patients by Invitae and analyze the genetic code to improve treatment efficiency. A genetic test is also conducted at the customers’ request. Among the solutions that Invitae offers are tests for cancer, neurological, and pediatric diseases.
invitae’s revenue for the year 2020 was $279.6 million, an increase of 29 % annually. The company carried out almost 660 thousand tests, resulting in a 41% increase overall. Although the economy is in a dire state and non-urgent procedures and testing have declined, this occurred despite the healthcare system crisis.
Based on a Research and Markets report, the global genetic analysis market is believed to reach 21 billion US dollars by 2027, with a compound annual growth rate of 10%. A major goal of Invitae is to expand genetic testing affordability and make it widespread.
Consequently, the company does not plan to increase prices to expand its business; they plan to promote to a broader audience. for example, the invite sets reasonable prices for their tests. A non-invasive prenatal screening (NIPT) costs as little as $ 99, and a diagnostic or proactive test costs as much as $250 if the test prices are not covered by insurance.
Invitae Corporation (NVTA) is not favored by all investors, however. Arrears and amount of funds are the subjects of concern. Net losses at the company were $ 608.9 million, a 149 percent increase from 2019. Over the past three years, the company’s total long-term net debt increased by 562 percent.
More than $441 million of cash was spent by the company in the fourth quarter alone, of which $352 million was associated with the acquisition of ArcherDX. Besides extending its expansion and marketing, the company continues to invest majorly.