Nigerian biotechnology startup 54Gene emerged as one of Africa’s most ambitious health technology companies after launching in 2019 with a mission to address the severe underrepresentation of African genetic data in global pharmaceutical research, but the venture later struggled to sustain its business following the decline in COVID-19 testing demand.
Founded by Dr. Abasi Ene-Obong, the company sought to build one of Africa’s largest genomic databases to improve drug discovery, precision medicine and disease research. At the time of its launch, fewer than three per cent of genetic samples used in global pharmaceutical research originated from Africa despite the continent’s vast genetic diversity.
The startup attracted significant investor confidence, raising more than $45 million across multiple funding rounds from global investors, including a $25 million Series B funding round in 2021. It also established Nigeria’s first genome sequencing laboratory in partnership with Illumina while expanding collaborations with hospitals and research institutions across the continent. Brandspur Brand News reports that 54Gene rapidly became one of Africa’s best-funded biotechnology companies.
During the COVID-19 pandemic, 54Gene expanded beyond genomics research by operating molecular testing laboratories that supported Nigeria’s public health response. The temporary surge in testing demand provided an important revenue stream as the company leveraged its laboratory infrastructure and technical expertise.
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However, the easing of the pandemic significantly reduced demand for COVID-19 testing, exposing the company’s reliance on the business line. As revenues declined, 54Gene initiated major cost-cutting measures, including workforce reductions, while attempting to refocus on its core genomics and pharmaceutical research business. Founder Abasi Ene-Obong later stepped down as chief executive during the restructuring process.
Despite its early promise and international recognition, the company was unable to regain financial stability. In 2023, reports confirmed that 54Gene had begun winding down its operations after facing mounting financial and operational challenges.
Although the company ultimately ceased operations, its efforts helped draw global attention to the importance of African genomic research and highlighted the need for greater inclusion of African genetic data in the development of future medicines and healthcare innovations.
