Leerink resumes coverage of Invitae at OP

Leerink resumed coverage of Invitae (NASDAQ:NVTA) with an “outperform” rating and $12 price target. The stock closed at $8.44 on Wednesday.

Analyst Puneet Souda writes that Invitae is a high growth, commercial-stage diagnostics company focused on building a business around genetic testing in a sizable and growing multibillion-dollar market.

The company has over 1,000 genes currently in production in a variety of flexible panel formats, with a competitive turnaround time and an attractive set pricing, he added.

“With recent and rapid progress on the reimbursement front, Invitae now has 160 million lives covered under commercial payers beyond the positive pricing already announced by CMS,” he said.

“Cancer testing still constitutes 75% to 80% of volume for Invitae, and thus reimbursement remains a key, despite Medicare being only 8% to 10% of the company’s volume,” Mr. Souda said.