Rare Daily Staff
The medical genetics company Invitae said it is filing for chapter 11 protection in the U.S. Bankruptcy Court for the District of New Jersey while it seeks to find a buyer.
The company said the business intends to transition into chapter 11 without disrupting operations and meeting go-forward commitments to employees and vendors.
The decision follows at least two rounds of layoffs. In July 2022, the company laid off 1,000 employees and named a new CEO. Again, at the end of 2023, the company laid off about 238 employees, about 15 percent of the company then, and the divestiture of its patient-centric health data company Ciitizen.
“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,” said Ken Knight, president and CEO of Invitae. “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.”
Invitae said the chapter 11 filing is being done with the support of its Senior Secured Noteholders as agreed to in a Transaction Support Agreement. The agreement includes a commitment from the Senior Secured Noteholders to provide an affirmative vote in support of the company’s chapter 11 plan, support the company’s sale process, and agree to the consensual use of the company’s cash on hand during the cases.
Photo: Ken Knight, president and CEO of Invitae
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