Centogene secures $20 million in Saudi-backed funding By Investing.com

CAMBRIDGE, Mass. – Centogene N.V. (NASDAQ:CNTG), a life sciences company focusing on rare and neurodegenerative diseases, has announced securing approximately $20 million in funding through a set of agreements with Lifera, a biopharmaceutical company owned by Saudi Arabia’s Public Investment Fund. The deal includes a $15 million purchase of Centogene’s accounts receivables and an increase in investment for their joint venture, aiming to bolster the company’s financial position and support its growth and profitability goals.

The funding is expected to provide Centogene with enhanced liquidity to maintain its operations and strategic initiatives. According to Kim Stratton, CEO of Centogene, this financial boost will contribute to the company’s mission of delivering data-driven answers in the healthcare sector and is in line with their objective to reach EBITDA breakeven by the end of the year.

In the agreement, Lifera has provided financing against several Centogene assets, including accounts receivables and participations. As part of the transaction, the terms of a previously announced $30 million convertible loan from Lifera to Centogene will be revised, extending the loan to 24 months with a portion to convert at $0.79. Additionally, Centogene’s equity interest in their joint venture will be reduced, with an option to repurchase in the future.

Centogene, founded in 2006, integrates multiomic technologies with its proprietary biodatabank to advance precision medicine. The company’s network includes about 30,000 active physicians, and its biodatabank has data from over 850,000 patients across more than 120 countries. Their work has contributed to over 300 peer-reviewed publications and over 50 collaborations with pharmaceutical partners.

This financial development is detailed in Centogene’s filings with the U.S. Securities and Exchange Commission, including the Current Report on Form 6-K and the Annual Report on Form 20-F filed on the full date of May 15, 2024, as well as previous filings.

InvestingPro Insights

Centogene N.V. (NASDAQ:CNTG) has recently secured a critical funding agreement, which is a significant step for the company as it navigates through its financial and strategic endeavors. To further understand the company’s financial health and market performance, here are some insights based on real-time data from InvestingPro.

InvestingPro Data indicates…