Invitae Divests Ciitzen, Assets Transferred to Newco
December 13, 2023
Rare Daily Staff
Two years after the genetic testing company Invitae acquired the patient-centric health data company Ciitzen for $325 million, it said it is divesting it as part of cost-cutting measures that include additional reductions to its workforce.
Invitae, which laid off 1,000 employees in 2022, said the divestiture and additional cuts will save it between $90 million and $100 million a year excluding one-time severance payments.
Ciitizen is a consumer health tech platform that helps patients collect, organize, store and share their medical records digitally. With the divestiture, the Ciitizen assets have been transferred to a new entity established by the leadership team of the Ciitizen business and funded by a group of venture capital investors.
Invitae maintains a minority equity interest in this newly formed company. Invitae said it intends to collaborate with the new company on key initiatives as the Ciitizen platform expands globally.
Invitae continues to operate its core genetics data business, including sponsored testing programs, biopharma research services and rare disease discovery.
“We continue to believe that patient-consented data is growing in importance for improving patient care, and that this new company will be able to take the platform to the next level,” said Ken Knight, president and chief executive officer of Invitae.
In a post of LinkedIn, Farid Vij, cofounder and CEO of Ciitizen, said the core leadership team will continue with the new organization.
“We are now building the next generation of the Ciitizen platform to become a nerve center and compass for patients, helping identify the best therapies and care,” he said.
Photo: Ken Knight, president and CEO of Invitae
Sign up for updates straight to your inbox.