Invitae Shares Drop 10% on Lower Guidance, Restructuring

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By Dean Seal

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Shares of Invitae Corp. fell more than 10%, to $2.39, in premarket trading after the company lowered its revenue guidance and said it would be shuffling its management amid a corporate restructuring.

The medical genetics company said after the bell on Monday that it plans to shift operational and commercial efforts toward higher-margin, higher-growth opportunities and reduce the number of markets it services from more than 100 to just four by exiting non-core businesses and geographies.

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Invitae also said Monday that Kenneth Knight, its operating chief, would succeed Sean George as chief executive. The company expects Mr. George to serve as a consultant to the company through the transition period and remain a board member. The company’s former chief executive, Randy Scott, will be returning to the company as chairman, while board member Eric Aguiar will become the company’s lead independent director.

Invitae is due to report its second-quarter results next month, but said Monday that it expects the quarter’s revenue to be $136 million, below market expectations of $141 million, according to FactSet.

The company is also forecasting for revenue in the second half of the year to be similar to the $260 million it logged in the first half, bringing the full-year revenue target to $520 million. Invitae had previously guided for annual revenue of $640 million.

Benchmark analyst Bruce D. Jackson downgraded the stock to hold on Tuesday, saying he would stay on the sidelines “until the dust settles on the reorganization.”

Write to Dean Seal at [email protected]

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Credit: www.marketwatch.com /

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