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The African genomics company confirmed to TechCrush today that the founder and CEO of 54Gene, Dr. Abbasi Ine-Obong, has stepped down as CEO.
The three-year-old company’s general counsel has appointed Teresia L. Bost as interim CEO. She will be supported by Chief Operating Officer Delali Atipo, the company said. Ene-Obong, on the other hand, will retain his position on 54gene’s board as he transitions to a new senior advisory position.
In-Obong’s resignation and Boast’s ascension come two months after 54gene laid off 95 employees, more than 30% of its workforce, in August. The penalty affects contract workers (lab and sales departments) recruited to work in the 54Gene Covid business line launched in 2020: African Genome Biobank.
In the year Founded in 2019 by N-Obong, 54gene addresses a gap in the global genomics market where Africans account for less than 3% of the genetic material used in drug research, which is more genetically diverse than the rest of the population. The bold project has received more than $40 million from investors such as Adjuvant Capital, Y Combinator and Cathay AfricInvest Innovation Fund (CAIF) and has partnered with firms such as Illumina, GeneTech and Parexel.
Biotech will take a long-term approach to making money globally. In fact, such companies can become billions with little or no revenue. For Washington-based but Africa-focused 54Gen, its main revenue stream involves working with pharmaceutical companies to co-develop drugs and medicines–which takes time. The typical time frame for a new drug from development to market entry can take up to ten years, so it made sense for 54gene to turn its lab capacity to covid testing as a new source of revenue.
However, the drop in Covid testing has presented 54G with new challenges: reduced income and redundant roles. Although it was able to release 95 employees earlier, the company has confirmed that it has been laid off for the second time following restructuring in various departments. The YC-backed company wants to focus resources on the core mission of genomics research in Africa and balance precision medicine. At the same time, the clinical examination arm takes the back seat.
Here’s more information about the company’s new direction:
Going forward, the company’s main focus will be on specialized genomic research, which has begun leveraging genomic datasets from the 54Gene state-of-the-art biobank, which currently has more than 130,000 unique patient samples and related genomic data. The company aims to position itself to contribute to precision medicine and drug discovery. This will continue the meaningful work the company has invested in, emphasizing the current clinical diagnostic business line.
It is not known exactly why Ine-Obong is leaving. However, it is not easy to assume that the company’s recent struggles are contributing. Whether the company’s decision to leave is performance-related or due to the former CEO moving on to new projects, 54gene exclusively said, “Abasi has decided to step down as CEO, but will continue to support the company in future plans such as strategic partnerships and fundraising.” We can’t comment on what other new interests he might pursue if he does, but we wish him the best and still consider him a core member of the team. Interestingly, the former CEO’s resignation comes a month after the company’s founder and VP Engineering, Ogochukwu Francis Osifo, left the company in September.
As 54gene moves into a new phase, Ine-Obong, who has previously consulted for firms such as Gilead and IMS Health, believes that Bost and Atipo “have a deep understanding of 54gene’s operations, so the startup is very good.” Bost has over 20 years of extensive knowledge and experience in the pharmaceutical, biotechnology and healthcare industries with companies such as Celgene and Quartet Health, providing strategic support for security, corporate governance and financial matters. Atipo, on the other hand, brings over 15 years of experience in the pharmaceutical sector, working with companies such as Roche and Genentech.
Ene-Obong said in a statement about his exit and transition:
I have always believed that the extent of genetic diversity in Africa and other very diverse populations will materially impact our understanding of biology and lead to better medicine and interventions for the world’s population, and I am proud of what has been achieved at 54gene. I would like to thank the 54Gene Board for their support over the years and the many talented scientists and technologists I have had the pleasure of working with during my time at the company. I will continue to support the company and the scientific ecosystem, especially the African genomics ecosystem. Teresia and Delali bring decades of experience building and expanding high-impact global pharmaceutical companies, and a deep understanding of 54gene’s operations. I’m excited to see them take the company to its next phase.
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