CEO of 54gene resigns following staff layoffs

Dr. Abasi Ene-Obong, co-founder and CEO of the African genomics startup 54gene, has resigned from his executive position.

This news comes just a month after Ogochukwu Osifo, vice president of engineering and co-founder of 54gene, announced his resignation in a LinkedIn post stating that he was departing to "pursue other interests." 

Teresia L. Bost, the general counsel of the healthtech startup has been named as its acting CEO. Ene-Obong, however, will continue to serve on the board of 54gene while transitioning into a new position as senior advisor.

Although the reason for Ene-resignation Obong's is unclear, current problems with the business are probably a factor. Ene-Obong was the target of unfounded accusations of financial misconduct following the most recent layoff.

The company laid off 95 of its employees — primarily contract workers (in labs and sales offices) — in August. This was as a result of its dwindling COVID business line, which was launched in 2020 as a complement to its main product, a biobank of the African genome, according to TechCrunch.

As Covid-19 became a global phenomenon, interest in health technology increased dramatically, attracting investment to a still-underfunded industry. Some of these firms, including 54gene, saw pandemic management strategies like Covid-19 screening as a simple way to generate income. For the delivery of these tests, 54gene cooperated with government organizations.

Ene-Obong founded 54gene in 2019 to fill a void in the global genomics industry because, while having the most genetic diversity of any group, Africans constitute barely 3% of the genetic makeup of pharmaceutical research. The initiative has worked with companies including Illumina, Genentech, and Parexel and secured over $45 million from investors including Adjuvant Capital, Y Combinator, and Cathay AfricInvest Innovation Fund (CAIF).

The firm stated that it will launch another wave layoffs even though 95 employees have already been let go. The YC-backed firm claims that it wishes to concentrate resources on its primary goals of African genomics research and advancing precision medicine for all.

“Going forward, the primary focus will be on the unique genomic research the company has started by further leveraging its genomic datasets derived from 54gene’s state-of-the-art biobank, that currently houses over 130,000 unique patient samples and corresponding genomic data, all with the objective of positioning the company to make contributions to precision medicine and drug discovery. This continues the meaningful work the company has invested in, whilst de-emphasizing the clinical diagnostic business line at the time,” the company said.

In response to the company's choice to replace the previous CEO, 54gene merely stated that he had made the decision to stand down as CEO but would still assist the company in its future ambitions, including financing and strategic partnerships.

Ene-Obong, who has previously provided consulting services to companies like Gilead and IMS Health, thinks the company is in safe hands as it enters a new phase because Bost has extensive knowledge of 54gene's operations. Bost has worked with organizations like Celgene and Quartet Health for more than 20 years, gaining substantial expertise and experience in the pharmaceutical, biotechnology, and healthcare sectors. He also provides strategic support for corporate governance, finance, and securities issues.