Despite losing more than $53 million over the past three years, INVO says they will be stepping up purchases
BY RON SHINKMAN
Three recent deals in the fertility sector suggest that not only is consolidation ongoing, but is occurring in surprising ways.
Aside from the largest deal – US Fertility acquiring Piedmont Reproductive Endocrinology Group (PREG) in late January – INVO Fertility has acquired a small clinic in the Midwest. And in the Southeast, a regional real estate management firm is getting into the space with the purchase of the property housing a Mississippi clinic.
PREG operates six clinics, five in South Carolina and one in North Carolina, as well as two IVF laboratories. Their addition increases US Fertility’s reach to 120 clinics nationwide.
Terms of the PREG transaction were not disclosed, and a company spokesperson did not respond to a request seeking comment.
Ala. Property Firm Sees Promise In Buying Properties Housing Fertility Clinics
Meanwhile, Sanders Capital Partners has purchased the property housing the Positive Steps fertility clinic in Madison, Miss. for $4.25 million. The deal is limited to Positive Steps’ Madison property, not the business, according to Jackson Stewart, Sanders’ general counsel and executive vice president.
Sanders, which is based in Birmingham, Ala., focuses on purchasing and managing real estate assets. Its portfolio is a mix of professional healthcare buildings and retail spaces, primarily in Alabama.
"We often buy the real estate from the practice owners and lease it back to them, allowing them to use that formerly idle capital to invest in more profitable ventures such as expansion, equipment, new hires,” Stewart said.
But Stewart suggests Sanders is expanding its horizons.
“We are bullish on the fertility space as a whole and would welcome the opportunity to expand in this arena by partnering with exceptional practices,” Stewart said in a written statement to Inside Reproductive Health.
INVO Focusing On Acquisitions To Return To Profitability
INVO has lost a combined $53 million since 2022, including $25.3 million through the first nine months of 2025.
But INVO was not deterred from acquiring Indianapolis clinic Family Beginnings last month for $760,000. A total of $360,000 was paid at closing in cash, with the rest paid through an issue of 400 shares of INVO preferred stock. That stock may be converted to common stock, so long as it does not comprise more than 5% of the company ownership.
INVO’s struggles are embedded in its common stock price. Its shares are currently trading at around 87 cents apiece. Just a year ago, they were trading above $90.
The company’s stock price has been brought low by the failed merger with NAYA Biosciences, which has cost INVO tens of millions of dollars to unwind, including an $18 million loss through the first nine months of last year.
Shum noted that there were other one-time charges in 2025 aside from the NAYA unwinding and that adjusted pre-tax earnings for the third quarter of last year was a loss of $947,568. That’s compared to an adjusted pre-tax loss of $945,949 for the third quarter of 2024.
A $7.5 million warrant inducement that occurred in January and a $4 million private placement last December were both priced at a relatively low market value, which damaged the stock further. A one-for-eight reverse stock split last November and a one-for-three split last July has failed to halt INVO’s slide.
In early February, the company issued a shareholder letter stating that it was focused on acquiring clinics that can immediately make a contribution to its bottom line.
Although Family Beginnings’ annual revenue is a little over $1 million, its net profit is about $200,000 a year. INVO Chief Executive Officer Steve Shum told Inside Reproductive Health that INVO would focus on expanding volumes at the clinic. “It has existing room for growth,” he said.
And despite the fact the company’s latest earnings report indicated it had less than $356,000 in cash on hand, Shum indicated other deals are on the horizon.
“We have an active pipeline of opportunities which we are pursuing but we have not commented on a specific goal for the balance of this year,” he said.
The latest acquisition makes Family Beginnings INVO’s fourth fertility clinic.