The investment in MedGenome will seek to capitalise on favourable dynamics in both domestic, international markets for genetic diagnostics
MedGenome recently announced an investment of $55m led by LeapFrog Investments. Existing investors Sofina and Sequoia also participated in the round.
Sam Santhosh, CEO and Founder, MedGenome said, “Genomics and personalised medicine are the future of healthcare, but emerging markets remain significantly under-penetrated. As the largest player in India in applied genomics, we are well-positioned to fill this gap”. The subcontinent contributes around 20 per cent of the world’s population, while the DNA sequences of its people make up only around 0.2 per cent of global genetic databases.
Sam added, “Genetics is having a transformational impact on families through early disease risk detection, inherited disease prevention, healthcare personalisation, and new therapy development. MedGenome strives to deliver these benefits to India and emerging markets, where the burden of many inherited and complex diseases is even higher than in western markets. We are excited about partnering with the LeapFrog team, who share our focus on profit with purpose, and look forward to leveraging their network and expertise to accelerate achievement of our goals.”
The MedGenome transaction was led by Dr Felix Olale, Global Co-Lead for Healthcare Investments, LeapFrog. Dr. Olale said, “We are very excited to partner with MedGenome to increase access to affordable and high-quality genetic testing for emerging consumers in Asia and Africa. Genomic sequencing will anchor the future of medicine and we must include other underrepresented genomes not only because it drives access, but also because it improves the accuracy for everyone. As the leading player in its field, we believe that our investment will enable MedGenome to rapidly consolidate its position in Asia and become a significant player in the global market for drug discovery and precision medicine. Our investment will also drive the development of new drug discovery platforms that will have an enormous impact on cancer and cardiovascular disease.” This investment is in line with LeapFrog’s consumer health approach and will be a key addition to the portfolio in terms of both returns and impact. Furthermore, it is a strong fit for LeapFrog’s impact mandate via increasing the availability of essential diagnostics in emerging markets and creation of new drug targets for intractable diseases globally.
The investment in MedGenome will seek to capitalise on the favourable dynamics in both the domestic and international markets for genetic diagnostics. The Indian genetic diagnostics market is expected to expand at 42 per cent CAGR over the next five years. Globally, the market is expected to grow from $13bn in 2019 to $28.5bn by 2026 driven by improving penetration, affordability and increasing consumer awareness.