Centogene and Lifera kick-off joint venture
Multi-omics diagnostics specialist Centogene NV has received €30m to form a joint venture with PIF-owned pharmaceutical company Lifera in Saudi-Arabia.
Under the contract the joint venture will use German Centogene NVs multiomics biobank that represents data of 750,000 patients, and Liferas biopharmaceutical know-how to increase local and regional access and rapid delivery of world-class multiomic testing to patients in Saudi Arabia and countries of the Gulf Cooperation Council (GCC). The strategic partnership is expected to translate genetic insights into data-driven, life-changing medical solutions fostering the Saudi-Arabian biotech sector by accelerating precision medicine, expanding population health programs, improving turnaround times on clinical diagnoses, and building capabilities and capacity in Saudi Arabia to foster global research and collaboration. Lifera ist 100% owned by the Public Investment Fund (PIF) based in Riyadh.
Acording to the agreement, Centogene will receive a $30m investment in the form of a mandatory convertible loan with a six-month term and a conversion price of $2.20 per share of the companys common stock, as well as significant performance-related milestone payments and revenue-based royalties until the year 2033.
The goal of the joint venture is to provide widespread access to local state-of-the-art genetic sequencing tailored to regional needs. It will build an advanced laboratory and bioinformatics infrastructure – leveraging the Centogene Biodatabank, a multiomic data repository in rare disease biobanks and neurodegenerative diseases, which comprises more than 70 million and over 35,000 Saudi Arabian patient datasets. The JV will develop capabilities for genetic testing and interpretation working collaboratively with Centogene globally – serving as a vehicle for large national screening and genomics programs.
As such, patients in Saudi Arabia and the GCC, a rapidly growing region with over 56 million inhabitants, will have increased access to the worlds most advanced and effective diagnostic offerings, which is at the core of Liferas strategic objectives contribute to improving national resilience and health outcomes in Saudi Arabia.
This collaboration will also enable biopharma research in rare diseases and provide resources to foster collaborative research across Saudi Arabia and with global partners, commented Dr. Ibrahim Aljufalli, Chairman of the Lifera Board. As part of Vision 2030, Saudi Arabia has designed impressive programs to improve health outcomes throughout the region,” said Kim Stratton, Chief Executive Officer at Centogene.
Under the terms of the agreement, both parties will be represented on the board of the joint venture. The agreement also foresees that two Lifera representatives will join Centogenes Supervisory Board.
