Court blocks 54gene asset sale amid legal battle
A Federal High Court in Lagos has issued a directive that stops the sale of assets belonging to the defunct biotech company 54gene, marking a significant turn in the ongoing legal drama surrounding one of Africa’s prominent biotech firms.This court ruling halts the dissolution of 54gene and obstructs a proposed sale that included a genomic biobank with data from 100,000 Nigerians, which was reportedly valued at $3 million.
The injunction follows a petition filed in July 2025 by Dr. Abasi Ene-Obong, the founder of 54gene, who accuses the company’s primary investors, Cathay AfricInvest Innovation Fund and Adjuvant Capital, of orchestrating the firm's downfall.
Ene-Obong contends that the investors circumvented the board, forced the Nigerian branch of the company into bankruptcy, and obstructed funding opportunities, including a $110 million rescue package and a subsequent $35 million offer. He claims he was ousted from his position as CEO and that the investors influenced the company’s valuation to secure control and priority returns.
Once valued at $170 million, 54gene ceased operations in 2023 due to revenue losses post-pandemic and unsuccessful strategic shifts. Investors reportedly turned down bridge funding proposals and instead advocated for a $100 million Series C round, which ultimately did not occur. Ene-Obong alleges that following his resignation, assets were transferred to the Nigerian subsidiary to enable a fire sale.
Adjuvant stated that it acts in the “best interests” of its partners and reiterated its commitment to preserving the biobank for the benefit of Africa. Cathay AfricInvest has not provided any comment.
Established in 2019, 54gene aimed to bridge the diversity gap in global genomics through the collection of DNA from Africans, who represent the most genetically varied population.
The company played a significant role in Nigeria’s response to COVID-19 and had raised over $45 million. The court’s ruling places the company’s future—and the ownership of sensitive data—on hold until a final decision is made.
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