In a stunning turn of events, Invitae Corp, once hailed for its groundbreaking work in medical genetics and the recipient of support from SoftBank Group during the pandemic, now faces a dire financial situation. The Wall Street Journal reported on Monday that Invitae Corp has enlisted the services of restructuring advisers and is gearing up to file for bankruptcy in the coming weeks, citing individuals familiar with the matter.
This distressing development sent shockwaves through the market, causing Invitae Corp’s shares to plummet by a staggering 69.44%, reaching an all-time low of a mere 11 cents.
At the time of this publication,Invitae Corp stock (NVTA) has witnessed a decline.
Invitae Corp
Current Price: $0.15
Change : -0.24
Change (%): (-61.09%)
Volume: 46.8M
Source: Tomorrow Events Market Data
The company, which was once seen as a promising player in the genetic testing space, now grapples with the weight of a substantial $1.5 billion debt burden on its balance sheet.
In an effort to navigate this financial quagmire, Invitae Corp has brought in FTI Consulting and the law firm Kirkland & Ellis to explore strategic options, with bankruptcy emerging as a prominent consideration. The move reflects a desperate bid to address the mounting debt crisis that has cast a shadow over the company’s once-promising prospects.
A glance at Invitae Corp’s recent stock performance paints a grim picture of the company’s descent into financial turmoil. Over the past five days, the shares have witnessed a staggering decline of 67.01%, exacerbating the downward trend that has persisted over the past month (-73.86%), three months (-77.65%), year-to-date (-76.18%), and an alarming 94.03% over the past year.
Investors, once optimistic about Invitae Corp’s potential, now find themselves grappling with the harsh reality of a company on the brink of bankruptcy. As the medical genetics firm braces for the inevitable, the market watches closely, witnessing the unraveling of a once-prominent player in the biotech sector. The impending bankruptcy filing serves as a stark reminder of the fragility that can befall even the most promising ventures in the ever-evolving landscape of corporate finance.
