secwatch / observer
8-K filed November 14, 2022, 6:59 PM ET ticker WGS CIK 0001818331
other material confidence high sentiment negative materiality 0.85

GeneDx Holdings Corp. (WGS): restructuring charge — Sema4 exits reproductive health, cuts 500 jobs; Q3 net loss $77.6M, focuses on pediatric/rare disease

GeneDx Holdings Corp.

Key facts

Extracted from this filing and checked against the source text.

Earnings Releases SEC 8-K Item 2.02 confidence 0.95

GeneDx Holdings Corp. reported Third Quarter 2022 results: revenue $83.2 million, net income ($77.6) million.

Period
Third Quarter 2022
Revenue
$83.2 million
Net income
($77.6) million
Result
reported results
Exact text from the filing
Total revenue for the third quarter of 2022 was $83.2 million compared to $43.2 million in the third quarter of 2021. Pro forma revenue in the third quarter of 2022, assuming GeneDx’s results were included for the full applicable quarter, excluding COVID-19 related revenue, was up 21%. Gross margin in the third quarter of 2022 was 16%. Adjusted gross margin in the third quarter of 2022 was 20%, with the pediatric and rare disease franchise generating an adjusted gross margin in excess of 40% in the quarter. Net loss in the third quarter of 2022 was ($77.6) million.
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Earnings Releases SEC 8-K Item 2.02 confidence 0.8

GeneDx Holdings Corp. updated its Full Year 2022 guidance (reaffirmed).

Period
Full Year 2022
Guidance
reaffirmed
Result
guidance update
Exact text from the filing
Full Year 2022 Guidance Sema4 is maintaining the previously
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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

GeneDx Holdings Corp. announced a restructuring affecting reproductive and women’s health testing business (carrier screening, noninvasive prenatal, and other ancillary reproductive testing offerings) (approximately 500 positions, representing approximately 32.5% of its workforce).

Type
restructuring
Affected area
reproductive and women’s health testing business (carrier screening, noninvasive prenatal, and other ancillary reproductive testing offerings)
Headcount
approximately 500 positions, representing approximately 32.5% of its workforce
Exact text from the filing
On November 14, 2022, the Company announced its plan to pursue a new strategic direction focused on the Company’s pediatric and rare disease testing business coupled with the Company's Centrellis data platform. As part of the Company’s strategic realignment, on November 11, 2022, the board of directors of the Company unanimously approved the Company’s exit from the reproductive and women’s health testing business, which includes carrier screening, noninvasive prenatal, and other ancillary reproductive testing offerings (the "RH Business"). Prior to the decision to exit the RH Business, the Company performed a thorough review of a number of factors including the competitive landscape, recent shifts in payor coverage and reimbursement, declining average selling prices, and cost structure, and consideration of existing capital markets constraints and the macroeconomic climate, and concluded that the RH Business is currently unsustainable and cannot be restructured in way that will allow t
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GeneDx Holdings Corp. filing history →

Source: SEC EDGAR
accession 0001818331-22-000075
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