Invitae: Growth in Genetic Testing – (registration)

Posted: July 7, 2017 at 1:40 am

Genetic testing is expected to grow from a current $3-$4 billion market to $8-$10 billion over the next 5-6 years, asserts biotechnology sector specialist says Bret Jensen, editor of Biotech Gems.

Shares of genetic testing firm Invitae (NVTA) have risen over 20% in the past year. However, the shares have been chopped in half since they became public in early 2015, making the stock a busted IPO, a space we have found some significant investment successes in during the past.

Their specialty is genetic tests for hereditary disorders, amassing them into a single service whose advantage over competitors includes a lower price point, faster turnaround time and improved accuracy.

Management is quick to point out that over 4,000 medically important genetic tests are available today, but many are underutilized due to prohibitively high pricing.

They are building their genetic information platform with the long term in mind, noting that as more and more patients are accurately diagnosed they will be provided with the appropriate therapy earlier resulting in improved outcomes.

Current growth has been promising, with over twenty-six thousand tests accessioned and fourteen quarters of double digit sequential growth.

Other encouraging news has been that the average cost per sample has fallen to $360, representing a 40% improvement over the prior year and a 10% improvement over the prior quarter. Management expects these costs to continue to fall throughout the rest of 2017.

One can imagine the vast potential of the companys technology when they consider that in the future genetic information will play a role throughout a persons life, from newborn screening to having kids, addressing health issues and medical conditions to aging-related conditions and preventative applications.

Thus far this year the company has made a couple key acquisitions, including snapping up software developer Ommdom for $6 million in common stock.

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Invitae: Growth in Genetic Testing - (registration)

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