54gene Raises $25M to Advance Precision Medicine in Africa

The Underrepresentation of African Genetic Data in Pharmaceutical Research

Currently, less than 3% of the genetic material utilized in global pharmaceutical research originates from Africa. This significant disparity is particularly noteworthy given that individuals of African descent possess the greatest genetic diversity of any population worldwide.

54gene: Bridging the Genomics Gap

Since its launch in 2019, 54gene, an African genomics startup, has been instrumental in addressing this imbalance within the global genomics landscape. The company has recently secured $25 million in Series B funding to further its objectives.

This latest funding round follows a $15 million Series A raise completed last year and a $4.5 million seed round closed two years prior.

To date, 54gene has accumulated over $45 million in funding since its establishment.

The Importance of African Genomic Data

Considering that the vast majority of analyzed genomes originate from regions outside of Africa, the continent represents a crucial, largely untapped resource for novel genetic insights relevant to health and drug discovery.

54gene’s work is centered around this premise, conducting research and leveraging data to ensure that African populations benefit from forthcoming advancements in medicine and pharmaceutical development.

Expanding Laboratory Capabilities

Previously, 54gene relied on recruiting voluntary participants who provided genetic samples through blood or swab tests. Last September, the company enhanced its capabilities by establishing its own genetics sequencing and microarray laboratory in Lagos.

This facility was developed in collaboration with U.S.-based biotechnology firm, Illumina.

According to CEO Dr. Abasi Ene-Obong, the lab offers not only genotyping services but also whole-genome sequencing (WGS) and whole-exome sequencing (WES).

Understanding Genotyping, WGS, and WES

While genotyping typically analyzes only approximately 0.02% of an individual’s DNA, WGS can examine nearly 100% of the genome.

WES, although representing only 1.5% of the human genome, identifies around 85% of known genetic variants associated with disease.

These capabilities collectively empower 54gene to advance genomics research and support scientists and researchers throughout Africa.

Progress and Long-Term Vision

Innovation within health tech often requires considerable time for maturation, unlike sectors such as fintech or e-commerce. 54gene stands out as one of the few startups in Africa to progress from seed funding to Series B within a two-year timeframe.

When questioned about the company’s rapid advancement, CEO Ene-Obong affirmed significant progress in furthering African genomics.

He stated that the company is focused on building a foundational infrastructure to facilitate both immediate successes and sustained, long-term gains in healthcare delivery and treatment outcomes.

Biobanking and Talent Acquisition

In addition to launching its first laboratory, the company is expanding its biobanking capacity fivefold, a key achievement according to the CEO.

Previously, 54gene’s biobank held capacity for 60,000 samples. Based on Ene-Obong’s statements, the company now possesses capacity for 300,000 samples, approaching its goal of managing up to 500,000.

Furthermore, 54gene is prioritizing the recruitment and training of skilled professionals to generate and analyze the data necessary for its drug discovery initiatives.

Nigeria faces a shortage of experienced clinicians, and the company recognizes this as an opportunity to build a strong team through targeted recruitment and training programs.

Expanding Research and Clinical Trials

The new funding will also be allocated to enhance capabilities in sequencing, target identification and validation, and precision medicine clinical trials. A key focus is the expansion of 54gene’s operations across the African continent.

Strategic partnerships will be essential for this expansion. The company recently established a collaboration with the Tanzania Human Genetics Organization and is currently engaged in discussions with potential partners in various stages.

Dr. Ene-Obong expressed enthusiasm for the company’s Africa-first strategy, with plans to expand into East and West African countries in the coming year.

New Hires and Expertise

To support this expansion, 54gene has made several key hires, including Michelle Ephraim, Colm O’Dushlaine, Peter Fekkes, Teresia Bost, and Jude Uzonwanne. These individuals bring decades of experience from organizations such as Leica Biosystems, Regeneron Genetic Center, Novartis, Celgene, and the Bill and Melinda Gates Foundation.

Investment and Future Outlook

This funding round was led by Pan-African venture capital firm Cathay AfricInvest Innovation Fund. Adjuvant Capital, a lead investor in the Series A round, also participated, alongside other venture capital firms including KdT Ventures, Plexo Capital, Endeavor Catalyst, and Ingressive Capital.