NEW YORK (GenomeWeb) – Japanese genetic research and testing firm Genesis Healthcare announced today that it has completed the sale of ¥1.5 billion ($13.8 million) of newly issued shares to Rakuten.
In connection with the transaction, Rakuten Chairman and CEO Hiroshi Mikitani will join Genesis' board as an external director.
Genesis said that it intends to use the proceeds of the stock placement to promote its genetic tests and services, as well as invest in IT and R&D. It will also use the funding to accelerate its marketing programs, as well as strengthen its recruiting and training efforts.
"The investment by Rakuten, a [Japanese] leader in internet services, will allow us to increase awareness of genetic information technology through digital healthcare for the betterment of personalized health and self-medication," Genesis Cofounder and President Iri Sato Baran said in a statement.
Genesis offers services for diagnostic testing, DTC testing, and targeted and whole-genome sequencing, as well as healthcare and disease prevention test kits and IT services. The company also manages a genetic database of roughly 520,000 individuals, which it aims to expand to 1 million people by 2020.