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Centogene Increases Full-Year Revenue Guidance; CEO Resigns

NEW YORK – Centogene on Tuesday increased its revenue guidance for 2020 by about 30 percent as its core business is recovering and its COVID-19 testing is booming. In a separate announcement, the firm said that its CEO is stepping down.

The Rostock, Germany-based rare disease diagnostics and research company said it is increasing its full-year revenue guidance by 23 percent to 33 percent. The company now expects more than €80 million ($94.5 million) in 2020 revenues, up from an earlier estimate of between €60 million and €65 million.

"Our core business is recovering after the significant pandemic-induced decline in Q2. In addition, we saw a significant increase in our COVID testing revenue in recent month," said CFO Richard Stoffelen in a statement.

Centogene also announced that its CEO and Founder Arndt Rolfs has resigned, effective immediately. He will be succeeded by Andrin Oswald on Dec. 1. Rolfs will stay on as an advisor during the transition period.

"I have decided that the company is now in a great position to enter into a new phase of its journey and that this is a good time to allow new leadership to shape its future," Rolfs said in a statement, adding that he intends to work closely with Centogene's management to ensure a smooth transition.

Oswald was most recently the delegate for COVID-19 vaccines and immunotherapies for the federal government of Switzerland. Prior to that, he was director of life science industry engagement and partnerships at the Bill & Melinda Gates Foundation, and before that, he oversaw business integration at GlaxoSmithKline. He also held various leadership positions at Novartis.

"In our opinion, investors will view the hiring of an industry-experienced CEO favorably, while supporting the platform and business outlook that Prof. Rolfs has created," SVB Leerink analysts wrote in a research note to investors.

In morning trading on the Nasdaq, Centogene's shares were up 4 percent at $12.68.