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Is broad clinical genetic testing viable again after Invitae went bankrupt?

Blocked on a check since 2026-10-25 · ledger #22

Cost keeps falling; the binding constraint, reimbursement, has no public series yet.

Short answer

Invitae sold broad genetic test panels at low prices, grew volume quickly, and filed for bankruptcy in February 2024; Labcorp bought its assets. Sequencing kept getting cheaper; what failed was getting paid, with insurers denying many claims. Whether payer coverage for broad panels has improved since 2024 is the check that decides this.

Killing constraint
Insurer reimbursement for broad panels
E5 Legal permission / regulation + E1 Cost curve

Volume grew, but revenue per test stayed low because payers denied or underpaid claims.

Graveyard

Companies that died proving people wanted this. Capital shown where it was disclosed.

CompanyYearsCapitalHow it diedSource
Invitae2010–2024—Chapter 11, February 2024; assets bought by Labcorpsource M

What changed, dated

  • FDA's laboratory-developed tests rule is published (later vacated by a court in 2025). source H
  • FDA removes the LDT rule's provisions to implement the court's vacatur. source H

Regulatory activity

Federal Register documents matched to this category, refreshed weekly. The dates are what an E5 (legal permission) crossing hangs on.

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