Psomagen and Macrogen Complete Acquisition of uBiome’s Key Assets for $7.05 Million

VCBeat (WeChat ID: vcbeat) learned from foreign media that on January 2, 2020, U.S. genetic testing company Psomagen and South Korean biotechnology company Macrogen announced the joint acquisition of all key assets of U.S. microbiome company uBiome. The transaction was completed on December 27, 2019, at a purchase price of $7.05 million, equivalent to 1% of uBiome’s valuation.

The key assets acquired from uBiome include: a microbiome patent portfolio comprising 246 patents (60 registered U.S. patents and 186 patent applications); anonymized microbiome data; nearly 300,000 samples; and laboratory equipment from uBiome’s San Francisco laboratory.

Following the acquisition, Psomagen aims to leverage the newly acquired patents and data through research and development to create services that are safer and more competitive than its current offerings, thereby expanding its competitive advantage and proactively meeting the demands of the rapidly growing global microbiome market.

uBiome, founded on November 1, 2012, and headquartered in San Francisco, USA, is a citizen-science startup dedicated to sequencing the human microbiome. The company is renowned for its unique and competitive market position in the field of 16S rRNA gene sequencing of the microbiome. In this domain, uBiome’s patent portfolio is ranked as the third largest globally, and it has amassed the world’s largest volume of microbiome data.

The company has developed the world’s first sequence-based clinical microbiome test, dedicated to empowering patients and healthcare providers to better understand and manage individual health. By providing participants with actionable insights and information, uBiome helps enhance their understanding of the microbiota and its role in health and wellness, ultimately enabling them to manage their own microbiomes to improve their health outcomes.

A growing body of research has revealed that the human microbiome exerts a significant influence on various health-related conditions, including neurological disorders, cardiovascular diseases, metabolic syndrome, and cancer. The microbiome market is rapidly expanding, evolving into a high-growth, high-value-added industry. According to projections by the global market research firm Frost & Sullivan, the global microbiome market is expected to grow at a compound annual growth rate (CAGR) of 7.6%, increasing from $81.1 billion in 2019 to approximately $108.7 billion in 2023.

The nearly 300,000 microbiome data samples from uBiome hold immense value for integrated development across multiple business sectors, including personalized cosmetics, dietary solutions, healthcare, and new drug development. Ryan W. Kim, CEO of Psomagen, stated, “This acquisition is a brilliant move that will secure Psomagen’s global competitive advantage and leadership in the microbiome market. It provides us with a significant edge in this highly competitive landscape.”

Prior to its acquisition, uBiome completed nine rounds of financing, raising a total of approximately $100 million. The company’s latest funding round, a Series C, was closed on September 21, 2018, raising $83 million. It was led by the U.S. venture capital firm OS Fund, with participation from five other investors: Y Combinator, Konstantin von Unger, Dentsu, DNA Capital, and 8VC.

Macrogen CEO Kap-Seok Yang also expressed approval of the acquisition: “The acquisition of uBiome’s assets earlier this year marks our second strategic move in the microbiome market. This will enable us to deliver enhanced services in the short term, and more importantly, it will serve as the foundation for the new platform we are building based on human and microbial genomic data.”

Psomagen, formerly known as Macrogen USA, was established in 2004 as a subsidiary of the South Korean company Macrogen and was renamed Psomagen in 2019. The company is dedicated to providing personalized genomic services and sequencing technologies for early-stage applications, enhancing the analysis of genes and genomes to better identify differences among patients’ genetics, environment, and lifestyle. These services help predict disease risks and provide physicians with data for diagnosis and recommendations on individualized treatment. Psomagen’s whole-genome and whole-exome sequencing processes are certified by CLIA and CAP, positioning the company at the forefront of genetic and genomic analysis.

Macrogen is a pioneering company in the fields of precision medicine and biotechnology, founded on June 5, 1997, with its headquarters in Seoul, South Korea. In 2000, Macrogen went public on KOSDAQ, becoming the first company to be listed on this exchange in South Korea. Dedicated to research and development in genetics and genomic analysis, Macrogen has now established itself as a global expert in genomic analysis and a leader in South Korean biotechnology, working closely with over 18,000 research clients across 153 countries worldwide.

(Compiled by Yang Xiaohui)