Invitae Readies Telemedicine Marketing Blitz as Testing Volumes Fall 50%
On paper, there's tremendous potential for clinical-grade genetic testing to influence routine health decisions. The coronavirus pandemic is exposing the fact that, in reality, the practice is still far from routine.
Current events figure to significantly alter the growth trajectory of Invitae (NYSE: NVTA). The genetic testing business originally expected to process 725,000 samples in 2020, up from 482,000 in 2019. Through the first 10 weeks of the year, the company was actually on pace to process 850,000 tests. But stay-at-home orders issued in mid-March resulted in a 50% drop in test volumes.
That forced Invitae to withdraw full-year 2020 guidance, commit to reducing cash burn, and launch a marketing campaign to raise awareness of its telemedicine offerings. What should investors make of the uncertainty surrounding the growth stock?
Source Fool.com