The RVC Biofund closed the deal to sell its 17.79% stake in the Genetico portfolio company Center for Genetics and Reproductive Medicine (hereinafter — Genetico). The deal is profitable for the fund; its parameters were not disclosed. Since 2014, the total investment of the RVC Biofund in the project has exceeded RUB 180 million.
The founder and CEO of Genetico Artur Isaev, who became the acquirer of the stake, said that in the future, the package of the RVC Biofund would be divided. Its ultimate owners would be the HSCI group (IceGen-2 LLC) — 10% and Artur Isaev — 7.79 %.
The Genetico Center is a Skolkovo resident and one of the genetic research and medical genetic diagnostics leaders. The company works in bioinformatics, research of genomes and exomes to diagnose and treat serious diseases, the study of tumor genetics for targeted therapy of cancer, sequencing for scientific research, preimplantation genetic testing of embryos (PGT), and non-invasive prenatal testing (NIPT). Starting from the second quarter of 2020, the company is implementing a project to identify protective immunity against SARS-CoV-2 and to introduce a test system designed to detect such immunity.
The RVC Biofund acted as a co-investor in the first round of start-up financing in 2014 and took part in the second round, which took place in 2016-17. Over five years, the portfolio project has shown reasonable development rates: Genetico carried out a technology transfer, built a vast sales network, organized its modern laboratories to conduct tests, and established partnerships with leading world developers. According to its estimates, Genetico occupies about 30% of the Russian market for high-tech genetic testing services. The company develops its test systems and researches in the field of medical genetics. From 2015 to 2019, Genetico's revenue increased from 65 to 400 million roubles.
Director of RVC subsidiary funds Mikhail Fedotov noted that when investing in Genetico, the RVC Biofund was focused not only on investment attractiveness but also on the project's socio-economic effects in a breakthrough direction, which includes genomic technologies.
Genetico's core businesses and the size of the markets it operates continue to have good growth potential.
Center for Genetics and Reproductive Medicine GENETIKO LLC is a resident of Skolkovo and a subsidiary of the Institute of Human Stem Cells PJSC. The company provides a wide range of genetic research services for the diagnosis and prevention of hereditary diseases and genetically determined reproductive pathologies. The range of services of the Genetico Center®, which includes genetic analysis based on varying complexity technologies, is provided based on a laboratory-production complex created by HSCI in 2013 in Moscow. Genetico Center Laboratories®are equipped with the latest high-performance sequencers and robotic equipment of the newest generation and enabled advanced genetic research required for medicine, genomics, and proteomics.
RVC Biofund LLC was established in early 2011 with Russian Venture Company (RVC) and the Venture Innovation Fund's participation. The investment strategy of the Biofond is to invest in shares in the authorized capital of Russian companies that are infrastructure services or innovative companies in the biopharmaceutical sector of the Russian economy.
RVC Infrafond is a subsidiary fund of RVC JSC and the managing organization of subsidiaries of RVC JSC: LLC FPI RVC, Biofund RVC LLC, Civil technology of defense industry complex LLC. During its existence, the funds have provided investments to more than 100 innovative projects.
In 2016, RVC Infrafund became a managing partner and investor of the Russian-Belarusian Venture Investment Fund, in 2018 — the main contributor to the NTI Venture Fund. In 2019, RVC subsidiaries managed by the RVC Infrafund withdrew from 28 venture projects. Total revenues from exits and remaining in the portfolio of companies exceeded 430 million rubles. Prospective assets in fund portfolios rose by more than 90% over the year.