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Centogene 2023 Revenues up 2 Percent, Firm Secures $20M in Funding

NEW YORK – Centogene reported on Wednesday that its full-year 2023 revenues increased 2 percent year over year. The company also said it secured approximately $20.0 million in funding from biopharmaceutical company Lifera to support its further growth.

For the year ended Dec. 31, 2023, the German molecular diagnostics and rare disease company booked €48.5 million ($52.7 million) in total revenues, compared to €47.5 million in 2022 and in line with the company’s previous estimation of €48.5 million to €49.0 million.

Revenues for the diagnostics segment were €33.7 million, up 8 percent from 2022, primarily driven by revenues from the company’s whole-exome and whole-genome sequencing tests. Pharma segment revenues were €14.8 million, an 8 percent decline from a year ago, mainly due to "a lag" in pharma program timelines during the second half of 2023, the company said in a statement.

Centogene's 2023 R&D expense was €12.4 million, down 29 percent year over year from €17.5 million in 2022. The firm’s SG&A expense was €45.2 million, a 6 percent increase from €42.5 million in the prior year.

The company recorded a total comprehensive loss for the year of €35.8 million, or €1.27 per share, compared to a total comprehensive loss of €31.9 million, or €1.45 per share, in 2022.

The company ended the year with €19.1 million in cash and cash equivalents.

For full-year 2024, Centogene said it expects revenue growth to be between 10 percent to 15 percent year over year. 

"Looking ahead to 2024, our diagnostics business is expected to maintain steady growth in line with industry standards, and our pharma order book is on a record trajectory — with momentum expected to compound each quarter," CEO Kim Stratton said in a statement.

The company also said on Wednesday that it has secured approximately $20 million in additional funding from Lifera, a biopharmaceutical company wholly owned by the Public Investment Fund (PIF) in Saudi Arabia, through the sale of $15 million in Centogene's accounts receivables in Saudi Arabia at face value with no recourse.

Additionally, Lifera purchased 16 percent of Centogene's stake in a joint venture at a value of approximately $5 million. Centogene maintains 4 percent ownership in the joint venture with the option to repurchase the previous ownership on substantially the same terms within the next six to 24 months.

Centogene said the funds will be used to "support ongoing activities and to position the company for future growth and profitability."

"By securing approximately $20 million, we are providing greater liquidity to support our operations, strategic initiatives, and overall mission to provide data-driven, life-changing answers to patients, physicians, and pharma companies for rare and neurodegenerative diseases," Stratton said.

In February, Centogene announced a process to explore strategic alternatives, including a possible sale of the company. The firm said on Wednesday that it is "currently in active discussions with several interested parties," which could result in a near-term transaction by mid-July.