CENTOGENE, Lifera form genetic testing JV in Saudi Arabia and GCC
CENTOGENE, a provider of data-driven solutions for rare and neurodegenerative diseases, and Lifera, a biopharmaceutical company owned by the Public Investment Fund (PIF), have announced the formation of a joint venture (JV) with an aim to revolutionize genetic testing in the Gulf Cooperation Council (GCC) region.
The strategic collaboration is geared towards broadening regional access and speeding up the delivery of top-notch multiomic testing for patients in Saudi Arabia and the GCC region. This development aligns with Lifera’s strategic objectives to enhance national health outcomes and resilience in Saudi Arabia.
CENTOGENE, known for its pivotal role in genetic testing for patients in Saudi Arabia, will bring its renowned diagnostics and multiomics expertise to the JV. The partnership with Lifera’s robust local presence and resources will facilitate local genetic sequencing to cater to regional requirements. The JV will also invest in building a state-of-the-art laboratory and bioinformatics infrastructure.
Leveraging the CENTOGENE Biodatabank, the JV will utilize the largest real-world integrated multiomic data repository globally for rare and neurodegenerative diseases. The databank currently holds over 70 million and more than 35,000 Saudi Arabian patient datasets.
The JV will work hand in hand with CENTOGENE to develop capabilities for genetic testing and interpretation, thereby serving as a platform for national screening and genomics programs.
Dr Ibrahim Aljufalli — Lifera Board Chairman said: “This strategic collaboration is a reflection of Lifera’s mission to grow Saudi Arabia’s biopharma sector.
“With CENTOGENE’s expertise in the field of rare, metabolic and neurodegenerative diseases, we see tremendous potential value for the JV to provide more timely and accurate diagnoses which are crucial to patients and their families, driven by a comprehensive diagnostic portfolio that goes beyond standard laboratory testing and medical interpretation.
“This collaboration will also enable biopharma research in rare diseases and provide resources to foster collaborative research across Saudi Arabia and with global partners.”
The JV is expected to significantly boost access to leading diagnostic services for over 56 million inhabitants in the rapidly expanding GCC region. CENTOGENE is set to receive a $30 million mandatory convertible loan from Lifera as part of the collaboration terms.
As per the stipulations of the partnership, both Lifera and CENTOGENE will contribute capital to the joint venture. In addition to this, CENTOGENE stands to receive considerable milestone payments, contingent on the JV’s performance, and royalty revenues based on the venture’s earnings through 2033.
The management structure of the joint venture will include representation from both parties on the board. Furthermore, the agreement plans for the addition of two representatives from Lifera to CENTOGENE’s Supervisory Board.
Kim Stratton — CENTOGENE CEO said: “Teaming up with Lifera marks a significant step forward in our mission to deliver data-driven, life-changing answers to patients around the world and forms a pathway to achieving sustainable growth and profitability for CENTOGENE.”