Deal value: $1.4 billion
Announced: June 23, 2020
Closed: October 2, 2020
Less than a month after announcing its plans to go public through a $100 million IPO, the cancer diagnostics developer ArcherDX received a much better offer: get acquired instead, through a deal worth up to $1.4 billion.
Invitae put forward $325 million in upfront cash plus 30 million company shares—and committed to future milestone payments—in return for the chance to absorb and merge ArcherDX’s genomics, tumor profiling and blood testing platforms with its own.
At the time, Invitae’s co-founder and CEO, Sean George, cited the company’s overarching mission: “to aggregate the world's genetic tests into a single platform” in order to help make comprehensive profiling a standard practice.
And with ArcherDX’s portfolio—which also includes a research services catalog of more than 325 unique products—Invitae plans to deliver testing spanning the entire continuum of cancer care, from risk profiling and diagnostics to therapy assignment and monitoring for recurrence.
All told, Invitae said it expects to top $450 million in revenues by the end of 2021 and see 50% to 60% growth annually thereafter—big jumps, especially during a global pandemic, from its current estimate of $278 million in sales for the past year.
The company offered a sneak peek at its 2020 financial results during mid-January’s J.P. Morgan Healthcare Conference, pegging revenue increases at about 28% compared with 2019’s $217 million, even as COVID-19 forced many prospective patients to forgo or delay routine medical testing and cancer screenings. But billable volume also grew, up 40% to over 655,000, compared with 469,000 in 2019.