Court halts 54gene asset sale at request of founder, who accuses investors of contributing to company's downfall
In a legal showdown that has captured the attention of the global medical community, Abasi Ene-Obong, the founder of 54gene, is locked in a dispute with investors Cathay AfricInvest Innovation Fund and Adjuvant Capital. The dispute centers on allegations that these investors orchestrated the collapse of 54gene, once considered one of Africa's most promising biotech startups, through unilateral decisions.
The legal case, which was filed by Ene-Obong in July 2025, accuses the investors of sidelining the company's board, rejecting a $110 million rescue package, and forcing the Nigerian subsidiary into bankruptcy. In response, a Nigerian court blocked the sale of 54gene’s assets, including its biobank and intellectual property, to prevent further damage amid this founder-investor clash.
At the heart of the dispute is control. Ene-Obong claims he was forced to resign in late 2022. He alleges that the investors made decisions without board approval, undermined measures to save the company financially, and demanded four times their initial investment back before any sale proceeds could be shared. Furthermore, they are accused of blocking contracts that could've revived revenue and threatening Ene-Obong with false fraud allegations.
Before shutting down in 2023, 54gene had built Africa's largest independent biobank, collecting genetic material across 300 ethnic groups. The company played a key role in scaling Nigeria's COVID testing infrastructure. Ene-Obong's new venture, Syndicate Bio, aims to build genomic datasets across Africa and other diverse regions.
The investors, however, have remained silent on the matter. Cathay AfricInvest has not issued a statement regarding the ongoing legal dispute, while Adjuvant Capital has stated that it cannot comment on ongoing court matters but claims to act in the best interests of its portfolio companies.
Until judgment is passed, the biobank and 54gene's intellectual property remain frozen. The case marks a fresh chapter for Ene-Obong, even as his legal fight over Africa's most valuable biobank plays out in court. The outcome of this dispute could have far-reaching implications for the accountability and transparency of global medicine through African DNA.
[1] Oladimeji, O. (2023). Court halts sale of 54gene's assets amid founder-investor dispute. TechCabal. Retrieved from https://techcabal.com/2023/07/27/court-halts-sale-of-54genes-assets-amid-founder-investor-dispute/
[2] Okeke, C. (2023). 54gene founder accuses investors of orchestrating collapse, demands return of assets. Techpoint Africa. Retrieved from https://techpoint.africa/2023/07/27/54gene-founder-accuses-investors-of-orchestrating-collapse-demands-return-of-assets/
[3] Adegoke, O. (2023). 54gene founder sues investors, accuses them of orchestrating collapse. Ventures Africa. Retrieved from https://venturesafrica.com/2023/07/27/54gene-founder-sues-investors-accuses-them-of-orchestrating-collapse/
Technology played a significant role in 54gene, a biotech startup once considered one of Africa's most promising, as it had built Africa's largest independent biobank, collecting genetic material across 300 ethnic groups. This technology, including the biobank and intellectual property, is now frozen amid a legal dispute between its founder, Abasi Ene-Obong, and the investors, Cathay AfricInvest Innovation Fund and Adjuvant Capital.
