A Federal High Court in Lagos has issued an injunction preventing the sale of assets belonging to 54gene, a once-prominent African genomics startup. Among the assets frozen is a highly sensitive biobank containing genetic data from over 100,000 Nigerians. The court’s decision follows a lawsuit filed by the company’s founder, Dr. Abasi Ene-Obong, who accuses 54gene’s lead investors of orchestrating the company’s collapse and attempting to offload its assets under questionable circumstances.
In a petition filed in July 2025, Ene-Obong names Cathay AfricInvest Innovation Fund and Adjuvant Capital as central figures in the company’s downfall. He alleges that after forcing him to resign in late 2022, the investors sidelined the board, rejected his proposals to secure external funding, and unilaterally appointed a legal receiver to liquidate the company’s assets—without proper oversight or transparency.
According to Ene-Obong, the investors transferred 54gene’s intellectual property and biobank to its Nigerian subsidiary and initiated a sale process valuing the assets at just $3 million—an amount drastically lower than the company’s peak valuation of $170 million. He further claims they demanded a return of four times their original investment before any sale proceeds could be distributed, blocked revenue-generating contracts, and threatened him with unfounded fraud allegations.
Founded with the mission of leveraging African genomic data to advance global health, 54gene raised over $45 million in funding and played a pivotal role in expanding Nigeria’s COVID-19 testing infrastructure. Post-pandemic, the company pivoted toward building a proprietary DNA database and data tools for disease research and drug development. However, declining revenues and internal conflicts between the founder and investors led to its eventual shutdown in 2023.
At its height, 54gene operated Africa’s largest independent biobank, collecting genetic samples from over 300 ethnic groups and generating more than $20 million in revenue. The startup was hailed as a trailblazer in African biotech, with ambitions to reshape global medicine through inclusive genomic research.
In a public statement, Ene-Obong emphasized the ethical responsibility tied to the data collected:
Our mission to harness African genomic insights for better health rests on the highest standards of ethics and community trust. We should hold ourselves accountable to every study participant, business partner, investor, creditor, and the broader communities we serve.
Adjuvant Capital responded by stating it could not comment on ongoing legal proceedings but maintained that it “acts in the best interests” of its portfolio companies. Cathay AfricInvest has not issued any public statement.
Despite the legal turmoil, Ene-Obong has moved forward. In September 2023, he co-founded Syndicate Bio, a new genomics venture alongside Jumi Popoola and Estelle Dogbo. The company aims to build diverse genomic datasets across Africa and other underrepresented regions, continuing the vision that began with 54gene.
The legal battle over 54gene’s assets and data is ongoing. Until a final judgment is rendered, the court has frozen all sales and transfers of the company’s biobank and intellectual property. The case raises broader questions about data ownership, investor ethics, and the future of African-led biotech innovation.
