NEW YORK – Hong Kong-based genomics testing firm Prenetics said Tuesday that it has sold a portion of its secondary shares in early cancer detection firm Insighta to Chinese multimedia firm Tencent for $30 million.
Insighta is Prenetics' $200 million joint venture with Chinese University of Hong Kong researcher Dennis Lo, widely credited as the inventor of noninvasive prenatal testing.
Following the transaction, Prenetics' stake in Insighta will be reduced from 50 percent to 35 percent, with Insighta's cofounders retaining their 50 percent shareholding. Prenetics has received $30 million in cash from Shenzhen-based Tencent, and the new investment values Insighta at $200 million, Prenetics said in a statement.
Alexander Ng, president of Tencent Healthcare, will also join Insighta's board of directors.
Hong Kong-based Insighta uses its proprietary Fragma technology to detect DNA methylation aberrations in cell-free DNA in blood samples. It identifies specific fragment patterns associated with cancer cells and enables early detection of cancer, Prenetics said.
Insighta has begun clinical trials for liver cancer in China and will soon expand these to lung cancer. It is also developing tests for other cancer types, Prenetics noted.
Tencent's "expertise in [artificial intelligence], combined with our proprietary Fragma technology, positions us to make significant strides in improving early cancer diagnosis, which can greatly enhance patient outcomes worldwide," Insighta Cofounder Allen Chan said in a statement.
"We look forward to deepening our partnership with Insighta through various dimensions, including technical collaboration and financial investment," Ng said. "In the future, leveraging Tencent's leading AI technology and service platform, we will strive to improve the accuracy of early cancer detection using Fragma technology, reduce service costs, and further enhance accessibility. Together, we believe we can make significant progress in improving the accuracy of early cancer diagnosis and ultimately save lives."