NEW YORK – Singapore-based molecular diagnostics company Inex Innovate is acquiring the Taiwan-based genomics business of Manchester, UK-based Yourgene Health (Yourgene Taiwan), the companies said on Tuesday.
Under the terms of the agreement, Inex will pay up to $4 million including related milestone payments over the next two years. It said it expects Yourgene Taiwan to contribute $3.5 million to $4 million in revenues to its business in 2023.
The transaction is subject to review and approval by the Investment Commission of Taiwan's Ministry of Economic Affairs and is expected to be completed in eight to 12 weeks, Inex said.
Inex specializes in fetal and women's health, and said that Yourgene Taiwan provides it with additional capabilities in fetal health and oncology R&D, bioinformatics, biobanking, and clinical laboratory services in the areas of reproductive health and gynecological cancers.
Yourgene Taiwan has sales in Hong Kong, Japan, and Taiwan, and also has a 10,000-square-foot next-generation sequencing laboratory with approximately 25 employees in the North Asia region that is expected to run and distribute Inex's diagnostic products for endometrial, breast, and ovarian cancers.
"This strategic move marks a significant milestone in Inex's journey of growth and expansion in the field of reproductive, fetal, and women's oncology diagnostics and importantly expands our footprint from Southeast Asia into the markets of North Asia," Inex Innovate CEO Kane Black said in a statement.
In April, Yourgene Health said that it was negotiating to divest its Taiwanese laboratory and reduce overall operating costs as it reported fiscal year 2023 revenues of £19.0 million ($23.7 million).
"Having taken the decision to carry out a strategic review and streamline the business, the divestment of our Taiwanese genomic services business will leave the group focused on our EU [and] UK markets and expansion into the US market, whilst retaining our proprietary Sage Prenatal Screening software," Yourgene CEO Lyn Rees said in a statement Tuesday. "We look forward to developing a lasting relationship with Inex as they act as our exclusive laboratory partner and service provider across Asia."