Invitae (NYSE:NVTA) stock is falling on Tuesday after the biotechnology company revealed plans to cut costs as part of a strategic realignment.
According to a press release from the company, it’s looking to cut costs that could save it up to $326 million. It intends to have these plans fully realized in 2023. That will extend its cash runway to the end of 2024.
Invitae notes that this will see it shutting down non-core operations. This will have it instead focusing on its “portfolio of businesses that generate sustainable margins and deliver returns to fuel future investment.”
In addition to that, Invitae is altering its testing business. This will see it focusing on oncology, women’s health, rare disease, and pharmacogenomics markets. It notes these have opportunities for higher-margin, higher-growth testing.
Invitae will also be reducing its headcount as part of its cost-cutting plan. To go along with that, the company is scaling back its international business to less than a dozen geographies. This will see it exit several areas where its business was only just starting.
All of this news brings with it heavy trading of NVTA stock. As of this writing, more than 9.6 million shares of the stock have been traded. That’s above its daily average trading volume of 9.3 million shares.
NVTA stock is down 11.4% as of Tuesday afternoon and is down 85% year-t0-date.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.