Shares of Invitae (NVTA 4.00%) were skyrocketing 53.5% as of 11:14 a.m. ET on Wednesday. The huge gain came after the medical genetics company announced its second-quarter results following the market close on Tuesday.
Second-quarter revenue was $136.6 million, up 17.5% year over year. The company posted a net loss of $2.5 billion, or $10.87 per share, based on generally accepted accounting principles (GAAP). Invitae's non-GAAP net loss in the second quarter was $158.5 million, or $0.68 per share. This was an improvement from the prior-year period and was better than the consensus estimate of a non-GAAP net loss of $0.74 per share.
The company also maintained its full-year revenue guidance of low double-digit growth. Invitae stated that it expects revenue growth to return to a range of 15% to 25% beyond 2023.
As of July 15, more than 25% of Invitae's float was sold short. Today's second-quarter update was more bullish than anticipated. The resulting surge in Invitae's share price appears to be a short squeeze as short-sellers scramble to cover their positions.
It certainly doesn't seem to be smart to bet against Invitae at this point. The business is showing clear signs of improvement. Invitae said that its total active healthcare-provider accounts in the second quarter increased 25% year over year. Its active pharma and commercial partnerships jumped 52%.
Invitae's story could get even better in the not-too-distant future. The National Comprehensive Cancer Network recently updated its guidelines to endorse universal genetic testing for all colorectal cancer patients. Invitae thinks that its target patient population in colorectal cancer will more than double in the U.S. as a result.