SoftBank Makes Big Biotech Bet On Genetic Testing Firm Invitae

DNA


Japanese investor SoftBank has made a big bet in the biotech world, this time on a publicly-traded genetic testing company named Invitae (NYSE: NVTA). SB Management, a SoftBank subsidiary, led a $1.2 billion convertible bond investment for Invitae that gives the company ample cash to further its growth initiatives.

SB Management is SoftBank’s asset management group that owns billions of dollars in global stocks. It’s separate from SoftBank’s famed $100 billion Vision Fund that also makes big bets on global companies.

  • By leading a $1.2B investment in Invitae, SoftBank has added the company to its list of major biotech public holdings which also include Canadian antibody developer AbCellera, 4D Molecular Therapeutics Inc, and DNA-sequencing company Pacific Biosciences of California Inc.
  • Invitae is a genetic testing company offering test services for diseases in a range of areas, including neurology, pediatric genetics, and reproductive health. The company’s appeal lies in working to make genetic testing cheaper and more affordable to everyday customers.
  • Traded on the New York Stock Exchange, Invitae has a market value of around $8 billion, many multiples its 2020 revenue of $280 million. Notably, the company’s biggest shareholder is the widely-followed investment firm Ark Invest, with about 14% of its outstanding shares.
  • The $1.2 billion convertible bonds that Invitae sold are Senior Notes due by 2028.
  • As Invitae announced its $1.2B convertible bond investment, the company also announced that it’s paying $200 million to buy a company that develops software for the genomics industry. That company is Genosity, which Invitae is paying $120 million in cash and $80 million in stock to purchase.


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