Hong Kong-based Prenetics Group Limited, a medical diagnostic startup, is making its debut on the Nasdaq through a merger with a special acquisition corporation, Artisan Acquisitions Corp. The deal is valued at $1.25 billion.
Prenetics has developed rapid diagnostics for COVID-19, as well as other infectious diseases and colon cancer. Since its launch in 2014, the company has conducted more than 5 million tests across the globe. Through the merger, Prenetics said the combined equity value following the merger totals $1.7 billion, making it the first Hong Kong-based unicorn to be publicly listed on the Nasdaq.
Prenetics Chief Executive Officer Danny Yeung called the merger a “significant milestone” for the company and Hong Kong’s entrepreneurial community. Listing on the Nasdaq is only a stepping stone for the company. Yeung hinted that Prenetics has a clear M&A acquisition strategy for expansion into the U.S. market. He said the company has a “first-mover advantage” and is well-positioned for its next phase of growth.
In total, Prenetics will receive $459 million from the merger, including $339 million already raised by Artisan and $120 million from private investment in public equity (PIPE). Proceeds from the merger are expected to allow Prenetics to engage in M&A activity, support internal R&D, and expand across the U.S., Europe, and Southeast Asia.
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Diagnostics for the ongoing COVID-19 pandemic have been lucrative for Prenetics. Over the past year, its revenue has spiked 215% behind its PCR testing capabilities. The company garnered $205 million in 2021 revenue, up from $65 million the previous year. By 2025, Prenetics predicts annual revenue of more than $600 million.
Most recently, Prenetics launched Circle HealthPod, a CE-IVD point-of-care diagnostics and at-home rapid-detection health-monitoring system for COVID-19. The company is expanding the test to eventually include influenza and sexually transmitted diseases. The company is planning to seek approval for Circle HealthPod in the United States and Europe. In anticipation of global demand, the company is ramping up its manufacturing capabilities.
When the merger is complete, Prenetics will trade under the ticker symbol “PRE.”
Artisan’s Adrian Cheng, a renowned Hong Kong entrepreneur, hailed Prenetics and Yeung for its testing technology.
“It was our core mission to seek out a high impact and high growth global company, and I am very pleased that we have found it with Prenetics. Danny has built a superb business with an inspirational team at all levels,” Cheng said in a statement. “I am also proud to support Prenetics in being the first Hong Kong unicorn to go public and to support local entrepreneurship. We share the vision to provide easily accessible and decentralized healthcare services to millions of people globally. I look forward to this ongoing partnership and, together, creating greater shared value for all.”
Source: Biospace
