On December 20, 2022 Invitae (NYSE: NVTA), a leading medical genetics company, reported that it has completed a transaction with Integrated DNA Technologies, Inc. (IDT), which includes the sale of Next Generation Sequencing (NGS) research assays under the trademarked name Archer, also known as the Research Use Only (RUO) kitted solutions (Press release, Invitae, DEC 20, 2022, View Source [SID1234625444]). The transaction also includes certain licensed rights to Invitae’s Anchored Multiplex PCR (AMPTM) technology. The transaction value includes total cash consideration of approximately $48 million, subject to certain adjustments. As part of the transaction, Invitae also entered into a supply agreement with IDT to support Invitae’s PCM services.
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This divestiture is part of Invitae’s portfolio optimization efforts and renewed strategic focus to achieve profitable growth in its core genetic testing business, fueling the pursuit of the significant market opportunities of its precision oncology LDT services. This transaction is expected to add to Invitae’s cash position, contribute to the company’s commitment to reduce cash burn and extend its cash runway.
"Today is the next step in executing our business realignment strategy and we’re pleased to complete this transaction with IDT. Many of our talented employees are transferring to IDT immediately, and we expect a seamless transition for the customers that rely on the RUO kitted solutions," said Ken Knight, president and chief executive officer of Invitae. "AMP technology, the foundation for our precision oncology services, including related patents and proprietary know-how, will remain with Invitae, and we’re looking forward to serving patients, physicians and biopharma partners with these emerging offerings."