Invitae Posts a Loss After a Revenue Decline in the Second Quarter
The COVID-19 pandemic threw a huge wrench in Invitae's (NYSE: NVTA) growth plans. In 2019, the genetic test maker's sales volumes grew by nearly 60%. In the second quarter of 2020, its volume growth was just 8%.
Requests for tests for immediate issues -- in reproductive health line, for instance -- remained strong throughout the quarter, but patients pushed off those that gauge long-term issues such as hereditary cancer risks or a genetic predisposition to heart disease. Overall volume dipped to around 50% of pre-COVID-19 levels in April, but recovered to more than 90% of previous volume by June.
Unfortunately, tests in the reproductive health segment cost less than the tests that declined in volume. Add in some issues the company had with reimbursement, and revenue slipped to $46.2 million in the second quarter, compared to $53.5 million a year prior.
Source Fool.com
