Invitae Corporation announced its 2021 Q2 financial results on August 3rd. As a result, the total revenue was up significantly of 151.8% (YoY, 3 months). However, Invitae is continuously recording net loss and negative cash flow. In this regard, loss from operation was down 5.8% (YoY, 3 months). In addition, net loss was down 22.5%.
Invitae issued 1.12 billion USD convertible senior notes since the beginning of 2021. This amount corresponds to 46.1% of Invitae’s shareholders’ equity at the end of 2021 Q2. We believe that the large amounts of convertible senior notes is one of main causes of decline in Invitae’s stock price.
Currently, Invitae’s shareholders’ equity ratio is 48.5%. In addition, its current ratio is 1211.5%. Thus, its financial condition is not unstable. However, we do not expect a breakthrough in its stock prices at this moment. We believe that the further reduction of the net loss is necessary.
Finally, Invitae announced in this April the investment from one of subsidiaries of SoftBank Group. Its high growth potential and the promising future of genetic testing suggest that the company is continuously in spotlight.
- Watanabe & Brothers’ Investment is holding shares of Invitae Corporation.
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