Adrian Cheng-backed start-up Prenetics acquires majority stake in Hong Kong biotech firm ACT Genomics
- Prenetics has acquired the stake for 19.9 million of its ordinary shares and US$20 million in cash
- Company wants to democratise testing and make cancer genomics accessible to all, CEO Danny Yeung says
This is the first mergers and acquisitions (M&A) deal Prenetics has concluded since its listing on the Nasdaq in May. Prenetics has acquired the stake for an upfront consideration consisting of 19.9 million shares of Prenetics’ ordinary shares and US$20 million in cash, and it expects ACT to contribute revenues of between US$25 million and US$30 million in 2023.
ACT’s revenue is expected to grow at a compound annual growth rate of 60 per cent between the financial years of 2022 and 2026, according to a separate statement released on Friday.
The deal highlights the start-up’s expansion into the cancer genomics space.
“It is our goal to democratise testing and make cancer genomics accessible to all,” Danny Yeung, CEO and co-founder of Prenetics, said at a press conference on Monday in Hong Kong. The acquisition will be effective from January 1, with Professor Tony Mok, ACT’s chairman, joining Prenetics’ scientific advisory board.
ACT is an Asia-based biotechnology company that specialises in genetic tests for cancer patients to determine optimal treatment plans. The firm was “pleased to join forces with Prenetics” and hopes the partnership will lead to breakthroughs in cancer prevention and diagnostics, Mok said.