• About
  • Advertise
  • Careers
  • Contact Us
Thursday, June 26, 2025
  • Login
No Result
View All Result
NEWSLETTER
Tech | Business | Economy
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
    • Mobility
    • Environment
    • Travel
    • StartUPs
      • Chidiverse
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • EventDIARY
    • Editorial
    • Appointment
  • TECHECONOMY TV
  • Apply
  • TBS
  • BusinesSENSE For SMEs
  • Chidiverse
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
    • Mobility
    • Environment
    • Travel
    • StartUPs
      • Chidiverse
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • EventDIARY
    • Editorial
    • Appointment
  • TECHECONOMY TV
  • Apply
  • TBS
  • BusinesSENSE For SMEs
  • Chidiverse
No Result
View All Result
Tech | Business | Economy
No Result
View All Result
Home Business StartUPs

Genomics Startup 54gene to Shutdown Amid Controversy and Financial Challenges

by Joan Aimuengheuwa
September 27, 2023
in StartUPs
1
Genomics Startup 54gene to Shutdown Amid Controversy and Financial Challenges
54gene

54gene

UBA
Advertisements

Nigeria-based genomics startup 54gene, once touted as a promising venture to improve global pharmaceutical research through valuable genome information on Africans, is on the brink of closure after a tumultuous four-year journey.

The company, founded in 2019 by Dr. Abasi Ene-Obong, initially raised an impressive $45 million across three funding rounds. However, it has been marred by frequent changes in leadership. In the past year alone, 54gene witnessed three CEO changes, culminating in the departure of Ron Chiarello in July 2023.

Report affirms that Chiarello confirmed the financial struggles that have led to the company’s winding down, stating that 54gene could not continue to operate financially, and it began to wind down in July.

As part of its winding-down process, 54gene is reportedly exploring options to find buyers for its assets, including a valuable biobank containing biological samples essential for research. While these assets are considered valuable, the progress of the sale remains uncertain.

However, legal troubles are complicating the closure further. Teresia Bost, the company’s former legal counsel and one-time interim CEO, has sued 54gene, alleging discriminatory behavior and a hostile work environment. These legal issues, along with claims of unpaid creditors, add a layer of complexity to the company’s already challenging situation.

Operating in the field of genomics is inherently capital-intensive, and the costs associated with sequencing equipment, data storage, and other expenses can quickly accumulate. Insiders with knowledge of 54gene’s operations have noted that the company still owes money to vendors who supplied medical equipment.

The startup expanded into diagnostics and established Seven River Labs in 2021, leveraging its success with COVID-19 testing. While it generated substantial revenue from COVID-19 testing, reports indicate that the company embarked on aggressive spending in the diagnostics space without considering market dynamics. By mid-2022, 54gene was grappling with financial difficulties, leading to salary cuts and layoffs.

The collapse of 54gene, once a flagship company in the genomics sector, is expected to have repercussions. Industry observers warn that this setback may cause global investors to hesitate when considering funding similar ventures in the future. The abrupt fall of a major player in the sector raises concerns about the sustainability of genomics startups and underscores the challenges inherent in this field.

As 54gene approaches closure amid controversy and financial woes, the industry will be closely watching its aftermath and its potential impact on the broader genomics and health tech landscape.

Loading

Advertisements
MTN ADS

Author

  • Joan Aimuengheuwa
    Joan Aimuengheuwa

    Joan thrives at helping individuals and businesses scale via storytelling...

    View all posts
0Shares
Tags: 54GeneDr. Abasi Ene-ObongRon ChiarelloTeresia Bost
Joan Aimuengheuwa

Joan Aimuengheuwa

Joan thrives at helping individuals and businesses scale via storytelling...

Next Post
AUTO24

AUTO24 Launches Its Pre-owned Car Marketplace To Four New African Markets

Comments 1

  1. Pingback: Nigeria: 54Gene, Lazarpay, Four other Local Firms that Shut Down in 2023 - Tech | Business | Economy

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recommended

Husk Power Launches Sunshot Initiative to Impact 2 million Nigerians by Scaling Solar Microgrids

3 years ago
Arinze Chilo-Offiah and Nigeria Startup Act

Enugu State Leveraging the Nigeria Startup Act for Transformative Growth – Chilo-Offiah

6 months ago

Popular News

    Connect with us

    • About
    • Advertise
    • Careers
    • Contact Us

    © 2025 TECHECONOMY.

    No Result
    View All Result
    • News
    • Tech
      • DisruptiveTECH
      • ConsumerTech
      • How To
      • TechTAINMENT
    • Business
      • Telecoms
      • Mobility
      • Environment
      • Travel
      • StartUPs
        • Chidiverse
      • TE Insights
      • Security
    • Partners
    • Economy
      • Finance
      • Fintech
      • Digital Assets
      • Personal Finance
      • Insurance
    • Features
      • IndustryINFLUENCERS
      • Guest Writer
      • EventDIARY
      • Editorial
      • Appointment
    • TECHECONOMY TV
    • Apply
    • TBS
    • BusinesSENSE For SMEs

    © 2025 TECHECONOMY.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    Translate »
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.