S.F. genetic-testing company, InVitae Corp (NYSE:NVTA) increases the size of its IPO to pull in over $100 million on its first day on Wall Street. It attracted investors with its innovative concept of genetic-testing. The attempts worked and it received a better response than expected. InVitae sold 6.35 million shares at $16 per share on its first day on the NYSE. The shares surged more than 6% to close at $17.01.
The spin off
Invitae was spinoff from Genomic Health, Inc.(NASDAQ:GHDX), which is one of the most successful biotechnology firms in Silicon Valley. Genomic was ranked 112 on the SV150 in 2014. Randal Scott, the founder of Genomic Health, cofounded Invitae and became CEO of the company. The objective was to focus on cheaper, faster genetic tests.
Invitae in its IPO filing with SEC mentioned that with the decline in prices of DNA sequencing, the amount of genetic data that can be gathered per dollar has increased exponentially. It enabled companies to have deeper analysis and storage of comprehensive genetic information. InVitae Corp (NYSE:NVTA) was being incorporated as Locus in 2010. It offered its first genetic test in 2013. It currently conducts tests for hereditary diseases. The prime focus is on cancer that passes through family bloodlines. As of now, the charges are $1,500, but founders expect to get the cost under $1,000.
The future ahead
Invitae adopted a different approach that not only allows consumers to simply send a sample and get results, but also mandates the test to pass through a medical expert. InVitae Corp (NYSE:NVTA)’s popularity is growing day by day. It conducted 200 billable tests in 1Q2014, and orders surged to 1,100 in 3Q and 1,800 in 4Q2014. Invitae also fetched success with health-care providers. It got approval as a Medicare provider and now is in the process of signing contracts with SelectHealth and Blue Shield.