Source: Media Outreach
- Prenetics will be acquiring a majority stake in ACT Genomics Holdings Company Limited (“ACT”) for an upfront consideration consisting of 19.9 million shares of Prenetics common stock and US$20 million cash
- Prenetics expects ACT to contribute revenues of approximately US$25-30 million in 2023
- Position Prenetics solidly within the US$80+ billion global precision oncology market
- Professor Tony Mok, Chairman of ACT, will join Prenetics Scientific Advisory Board, effective from January 1, 2023
- Acquisition expected to complete on or around December 30, 2022, subject to certain closing conditions
HONG KONG SAR – Media OutReach – 16 December 2022 – Prenetics Global Limited (NASDAQ: PRE) (“Prenetics” or the “Company”), a global leader in genomic and diagnostic testing, is acquiring a majority stake of ACT, an Asia based genomics company specializing in precision oncology with operations in Hong Kong, Taiwan, Japan, Singapore, Thailand and the UK, for an upfront consideration consisting of 19.9 million shares of Prenetics common stock and US $20 million cash (the “transaction”). That is the first M&A deal Prenetics is to make since its listing, which will expand its footprint in the cancer genomics space, bringing it closer to realizing the vision of building an end-to-end health ecosystem. With the acquisition well underway, effective from January 1, 2023, Professor Tony Mok, Chairman of ACT, will join Prenetics Scientific Advisory Board.
Boasting cutting-edge technologies in cancer genomics and bioinformatics, ACT has a multi-diagnostic technology platform and offers a comprehensive range of products in clinical services with high pan-Asia coverage. In November 2021, ACT merged with Sanomics Holdings Limited (“Sanomics”), both of which were awarded the Elite Program funding by Hong Kong Science and Technology Parks Corporation (“HKSTP”), where the strongest technical ecosystem is provided locally to its park companies to grow and thrive. HKSTP is home to over 200 health tech related start-ups and several international research clusters in healthcare.
With the continuous support from HKSTP and the government, Prenetics will have an extended reach to the healthcare technology market in the Greater Bay Area and beyond. Financially, ACT’s revenue is expected to grow at a CAGR of 60% between FY2022 and FY2026. Prenetics expects ACT to contribute revenues of approximately US$25-30 million in 2023.
When the acquisition is completed, leveraging ACT’s R&D engines which specializes in next-generation sequencing and bioinformatics in both tissue and liquid biopsy, Prenetics will have the scientific rigor to offer tests to patients throughout their cancer journey. This will also position Prenetics solidly within the US$80+ billion global precision oncology market.
Danny Yeung, Chief Executive Officer and Co-founder of Prenetics, said, “This is a significant move for Prenetics, as it is our first M&A deal since listing and is set to enlarge our footprint in the cancer genomics space. It is our goal to democratize testing and make cancer genomics accessible to all. With Professor Mok and the ACT team on board, we believe Prenetics can deliver the information needed to enable best-in-class personalized cancer care and make new heights. Lastly, we are actively n close discussions on additional M&A opportunities which we believe will be in the interest to Prenetics and our shareholders.”
Professor Tony Mok, Chairman of ACT Genomics, said, “We are very pleased to join forces with Prenetics. ACT has pioneered and made breakthroughs in cancer prevention and diagnostics since it was founded in 2014. Our flagship ACTOnco+ has provided oncologists and cancer patients with valuable biomarker information for therapy selection. I believe this transaction will give both companies enhanced financial strength and commercial and R&D capabilities to drive significant growth.”
Mr. Albert Wong, Chief Executive Officer of Hong Kong Science and Technology Parks Corporation, said, “We are thrilled to witness this milestone, which is a clear vote of confidence in Hong Kong’s ambition to become a biomedical technology center of excellence. It was only last year when we saw the merger of two health tech pioneers from the Hong Kong Science Park, ACT Genomics and Sanomics. The acquisition by Science Park incubatee, Prenetics, is a testament to the high-quality innovation ecosystem and translational research infrastructure that have been established at the Park over the past 20 years. Backed by government support and its unique advantages, Hong Kong is open to innovators from around the world who want to come and accelerate their future success.”
Under the terms of the transaction agreement, Prenetics has agreed to issue 19.9 million shares of Prenetics’ class A ordinary shares and pay $20 million in cash. Upon closing, Prenetics will hold a majority stake in ACT. More details about the transaction can be found under link: https://prenetics.gcs-web.com/static-files/fd50a409-45b7-4827-96e0-1c207ccca5aa
Hashtag: #Prenetics
The issuer is solely responsible for the content of this announcement.
– Published and distributed with permission of Media-Outreach.com.
