Invitae, a medical genetics company that received backing from SoftBank Group at the height of the pandemic has hired restructuring advisers and is preparing to file for bankruptcy within weeks, WSJ Pro Bankruptcy reported. The company is working with FTI Consulting and law firm Kirkland & Ellis to explore strategic options, including bankruptcy, to address $1.5 billion in debt on its balance sheet. San Francisco-based Invitae, which has been on an acquisition spree in recent years, has started to shed some assets and cut costs, the company has said. Invitae’s decline parallels the collapse in value of its more popular industry peer 23andMe, a genetic testing company targeting consumers, that has seen its market cap shrink from $6 billion in 2021 to nearly zero. Invitae’s shares have tumbled to under $1 per share since 2020 when its stock reached over $50 and it had a market cap of over $7 billion. The company’s shares traded at 39 cents on Monday, following an 82% loss in value in the past 12 months. Invitae raised $1.2 billion in convertible debt from SoftBank in 2021, planning to use the proceeds primarily to acquire assets, the company has said. SoftBank remains an investor in the company.
