Medical genetics company Invitae, which has been struggling recently to cut costs, has announced that it is seeking voluntary Chapter 11 bankruptcy protection to safeguard employees while it works to execute a sale with support of investors.
Invitae has asked the court’s approval to use cash on hand to cover operating costs without disrupting patient care or further endangering employees’ jobs.
"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," Ken Knight, president and CEO of Invitae, says in a statement. "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."
Among the recent realignments by the company were the sale of Invitae’s reproductive health assets, including carrier screening and non-invasive prenatal screening, to Natera earlier this year in a transaction valued up to $52.5 million.
The company also announced the need for layoffs last year as a cost-cutting measure.
Evan joined TriMed in 2011, writing primarily for Health Imaging. Prior to diving into medical journalism, Evan worked for the Nine Network of Public Media in St. Louis. He also has worked in public relations and education. Evan studied journalism at the University of Missouri, with an emphasis on broadcast media.