Genomics startup 54gene is reportedly shutting down according to sources. The company started the process of shutting down in July 2023.
54gene was founded in 2019 and had raised $45 million in three founding rounds. The company’s aim was to provide crucial genome information on Africans to help improve the drug discovery processes of global pharmaceutical companies.
The company ran into issues over the following years including the replacement of its co-founder and CEO, Dr. Abasi Ene-Obong in 2022.
But less than four years into its creation, the company fell into disarray and would go on to have three CEO changes, including Ron Chiarello who started in March 2023. but left the role in July.
According to sources, 54gene’s business model in genomics was capital-intensive, and the business still owes money to companies that supplied some of its medical equipment.
By mid-2022, the company ran out of money, slashed salaries, and instituted layoffs; plans to raise new external funding initially collapsed.
