Republished with full copyright permissions from The San Francisco Press.

In a recent development, Labcorp, a prominent laboratory testing company, emerged as the successful bidder in a bankruptcy auction to acquire the assets of Invitae’s genetic testing services, digital health solutions, and health data services. This acquisition marks a significant transition for Invitae’s business operations, with Labcorp aiming to ensure continuity for Invitae’s customers and partners.

Invitae, headquartered in San Francisco, boasts a strong presence in clinical areas such as oncology, women’s health, and rare diseases. However, the company faced financial challenges and underwent a corporate realignment to streamline operations, leading to a substantial reduction in its workforce. Despite these measures, Invitae filed for chapter 11 bankruptcy protection, listing significant assets and debt in its filing.

Labcorp’s winning bid for Invitae’s assets follows its recent agreement to acquire the clinical diagnostics and reproductive women’s health business of BioReference Health. This strategic move underscores Labcorp’s proactive approach to expanding its portfolio, with a focus on increasing its presence in oncology and genetic testing, as well as venturing into rare disease diagnostics.

The acquisition of Invitae’s assets is anticipated to substantially enhance Labcorp’s annual revenue, with potential concerns regarding Invitae’s high business spending. Analysts speculate that if Labcorp can effectively manage this aspect, the addition of Invitae’s assets could prove to be valuable, leveraging Labcorp’s existing infrastructure to further establish its foothold in crucial segments like oncology and rare diseases.