Hong Kong-based Prenetics Global Limited is buying a majority stake in ACT Genomics, a Nasdaq-listed company specialising in precision oncology in Asia, as it looks to build an ecosystem extending beyond COVID-19 testing.
Prenetics, which went public in May through a $1.7-billion SPAC merger with Artisan Acquisition, has agreed to pay $20 million in cash consideration and the issuance of 19.9 million of Prenetics’ common shares.
Prenetics is planning to build an ecosystem consisting of risk profiling and diagnostic testing to therapy optimisation, monitoring, and recurrence surveillance to enable the utilisation of genetic information in personalised cancer care, said Danny Yeung, co-founder and CEO of Prenetics, during a media conference on Monday.
“Every year in Asia, there are nine million+ cancer patients with limited options, it is our goal to democratise testing and make cancer genomics accessible to all,” said Yeung, adding that Prenetics has a war chest for future R&D investment and industry acquisitions.
“We are actively in close discussions on additional M&A opportunities as we still have more than $230 million in cash and receivables on our balance sheet,” he said.
The acquisition of the Taipei-based ACT Genomics is estimated to complete this month. As part of Prenetics, ACT Genomics is expected to bring an additional $25-30 million in revenues in 2023.
The deal will see the immediate addition of cancer genetics and precision oncology tests to complement Prenetics’ existing portfolio of consumer DNA testing and medical genomics products.
ACT Genomics will also bring to the table its network and experience in collaborating with over 200 hospitals and 900-plus oncologists across Asia. It currently operates five labs in Hong Kong, Taiwan, Thailand, and Japan.
As Hong Kong’s first publicly-listed unicorn, Prenetics is projected to book $270-280 million in revenue this year. Before its Nasdaq listing, the firm raised venture financing from investors including Apis Partners, Beyond Ventures, Ping An Ventures, and Gobi Partners.