Sequoia-Backed MedGenome Acquires Prognosis Labs

SUMMARY

The acquisition would help MedGenome strengthen its diagnostic foothold in north India and cater to the needs of a larger population base

Founded in 2013, Prognosis is a NABL accredited, ICMR approved and AERB Certified pathology lab with a test catalgoue of over 700 tests

Last year, MedGenome raised $50 Mn in a strategic funding round led by life sciences investor Novo Holdings.

Sequoia Capital-backed genomics-driven diagnostics and research startup MedGenome has acquired Prognosis Laboratories to expand its geographical presence.

The acquisition would help MedGenome strengthen its diagnostic foothold in north India and cater to the needs of a larger population base.

The financial details of the deal were not disclosed.

Established in 2013, Prognosis Labs is led by Dr. Smita Sadwani, Dr. Deepak Sadwani and Mr. Mayank Madan. It is a NABL accredited, ICMR approved and AERB Certified pathology lab. It claims to have a test catalgoue of 700+ tests spread across pathology, radiology with a specialisation in molecular diagnostics, histopathology, immunohistochemistry, immunology, biochemistry, microbiology and serology using the latest technology.

Commenting on the acquisition, Deepak Sadwani said that the deal will accelerate the next phase of growth and expansion of Prognosis’ overall business.

Founded by Mahesh Pratapneni and Sam Santhosh in 2013, MedGenome is a CAP accredited genetic testing laboratory that offers over 1,300 genetics tests across various disease categories.

Besides Sequoia, MedGenome is backed by the likes of LeapFrog Investments, Novo Holdings, Sofina, HDFC, Emerge Ventures, Zodius Capital and International Finance Corporation.

Last year, the Bengaluru based startup raised $50 Mn in a strategic funding round led by life sciences investor Novo Holdings.

The startup then said it would use the proceeds to broaden its product portfolio, improve the reach of its diagnostic services across reproductive and oncology domains, and invest in enhancing bioinformatics and software-as-a-service (SaaS) offerings.

Earlier, it raised $55 Mn in 2020 in a funding round led by LeapFrog Investments. Overall, MedGenome has raised total funding of over $180 Mn to date.

The startup competes with the likes of MapMyGenome and Positive Bioscience in India.

The Indian diagnostics market is estimated to be worth $11 Bn currently. With an increasing population, rising economy and new breakthroughs in medical technology, this market size is expected to keep rising.

According to an Inc42 report, the country’s ehealth market is expected to reach a size of $21 Bn by 2025.