Tencent Invests $30 Million in AI-Powered Cancer Detection Firm Insighta

Tencent invests $30 million in cancer detection firm Insighta By Investing.com

HONG KONG - In a strategic move, Tencent (HK:0700) Holdings (OTC:TCEHY) Ltd has invested $30 million in Insighta, a company specializing in early cancer detection based in Hong Kong. The investment, announced today, values the health sciences company at $200 million. As a result of this transaction, Prenetics Global Limited (NASDAQ:PRE), which previously held a 50% stake in Insighta, will see its share reduced to 35%. The co-founders of Insighta will maintain their 50% ownership. Tencent's investment brings Prenetics' pro forma cash and short-term assets to over $90 million. Insighta's innovative FRAGMA technology is at the core of its early cancer detection platform. FRAGMA is designed to identify DNA methylation aberrations in cell-free DNA, which can be collected from bodily fluids like blood. This non-invasive method is expected to facilitate early detection of multiple types of cancer with high accuracy. Clinical trials for the technology have already begun in Mainland China, focusing initially on liver cancer, with plans to expand to lung cancer detection and tests for additional cancer types. Tencent's involvement will not only bring financial investment but also a seat on Insighta's Board of Directors, to be filled by Alexander Ng, President of Tencent Healthcare. Tencent's resources in AI and healthcare are anticipated to significantly advance the application of FRAGMA technology. The collaboration with Tencent is expected to enhance the accuracy and reduce the costs of early cancer detection, making it more accessible. Both companies express optimism that their partnership will lead to substantial improvements in early cancer diagnosis and patient outcomes. This investment is seen as a critical step for Insighta in its mission to revolutionize cancer detection. With a robust cash reserve of $80 million, Insighta is well-positioned to fund its clinical trials and bring its cancer detection technology to market in the coming years. Prenetics, with its various health initiatives, remains committed to supporting Insighta's endeavors. This partnership is a testament to the growing intersection of technology and healthcare in the pursuit of advancing medical diagnostics. In other recent news, health sciences company Prenetics Global Limited has acquired Europa Sports Partners and its subsidiary, Hubmatrix, broadening its influence in the United States health and wellness market. This strategic acquisition, funded by Prenetics' cash reserves, is designed to expand Prenetics into the consumer health sector, and coincides with the recent launch of the IM8 brand, co-founded by David Beckham. Europa Sports Partners, a major distributor with a network of over 10,000 gyms across the US, specializes in sports nutrition, while Hubmatrix provides logistics for health and wellness brands. Prenetics' CEO, Danny Yeung, highlighted the acquisition as crucial for the company's growth and innovation in the consumer market, with the company aiming to exceed $100 million in consumer segment revenue by the end of 2025. The acquisition also allows Prenetics to leverage Europa's extensive distribution network and integrate a digital distribution platform into its predominantly brick-and-mortar business model. This move is a part of recent developments that underscore Prenetics' strategic efforts to become a leader in the health and wellness industry in the US. Prenetics Global Limited (NASDAQ:PRE) has seen significant financial challenges recently, as reflected in the latest InvestingPro data. The company's revenue growth has experienced a dramatic decline of -91.88% over the last twelve months as of Q2 2024. This steep drop in revenue aligns with the company's strategic decision to divest a portion of its stake in Insighta, potentially to focus on core operations and strengthen its financial position. Despite the revenue decline, Prenetics maintains a solid gross profit margin of 52.4%, indicating efficient cost management in its core operations. This could be crucial as the company navigates the transition following the Tencent investment in Insighta. An InvestingPro Tip suggests that Prenetics' stock is trading at a significant discount to its fair value. With an analyst fair value target of $9 USD compared to its previous closing price of $4.39 USD, there might be potential upside for investors who believe in the company's long-term strategy and its remaining stake in Insighta. It's worth noting that Prenetics' market capitalization stands at $53.63 million USD, which is considerably lower than Insighta's $200 million valuation post-Tencent investment. This discrepancy could indicate that the market has not fully priced in the value of Prenetics' remaining 35% stake in Insighta. For readers interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further insights into Prenetics' financial health and future prospects. In fact, InvestingPro lists 15 additional tips for PRE stock, which could be valuable for investors considering the company's potential in light of recent developments.

Prenetics Announces Tencent's US$30 Million Investment in Insighta, Strengthening Strategic Partnership for AI-Driven Early Cancer Detection - Prenetics Global (NASDAQ:PRE)

HONG KONG, Oct. 15, 2024 (GLOBE NEWSWIRE) -- Prenetics Global Limited PRE, a leading health sciences company, today announced that Tencent has made a strategic US$30 million investment in Insighta, a Hong Kong-based early cancer detection company. This investment values Insighta at US$200 million and underscores Tencent's endeavor to advancing AI-powered innovations in healthcare. Following the transaction, Prenetics' stake in Insighta will be reduced from 50% to 35%. Insighta's co-founders will retain their 50% shareholding. As part of the agreement, Prenetics has received US$30 million in cash from the sale of secondary shares to Tencent, boosting its pro forma cash and other current short-term assets1 to over US$90 million at closing of the transaction. Tencent will also gain a seat on Insighta's Board of Directors, to be held by Alexander Ng, President of Tencent Healthcare. Insighta's early cancer detection platform is powered by its proprietary FRAGMA technology, a cutting-edge system designed to detect DNA methylation aberrations in cell-free DNA (cfDNA) in bodily fluids such as blood. By identifying specific fragment patterns associated with cancer cells, FRAGMA enables non-invasive, highly accurate early epigenetics-based detection of multiple cancers. Epigenetics is the study of biochemical modifications of the genome without changes in DNA sequences. This ingenious approach in detecting fragmented DNA signatures allows the cost-effective detection of cancer, making FRAGMA a crucial innovation in cancer detection. Insighta has commenced clinical trials in Mainland China, focusing initially on liver cancer, and will soon expand to include lung cancer detection. Insighta is also actively developing tests for additional cancer types, and plans on updating as appropriate. With US$80 million in cash reserves, Insighta is well-capitalized to fund these trials and expedite the commercialization of its revolutionary cancer detection technology in the next few years. "We are excited to welcome Tencent as a strategic investor," said Professor Allen Chan, co-founder of Insighta. "Their expertise in AI, combined with our proprietary FRAGMA technology, positions us to make significant strides in improving early cancer diagnosis, which can greatly enhance patient outcomes worldwide." Tencent's robust AI resources and healthcare expertise are expected to propel Insighta's technological advancements even further. This is conducive to facilitating the widespread application of FRAGMA technology in early screening for multiple types of cancer, thereby improving prevention strategies for cancer. "Tencent sees tremendous potential in Insighta's FRAGMA-powered approach to early cancer detection," said Alexander Ng, President of Tencent Healthcare. "We look forward to deepening our partnership with Insighta through various dimensions, including technical collaboration and financial investment. 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." Danny Yeung, CEO of Prenetics, commented on the transaction: "This investment marks another significant step for Insighta as it continues its mission to transform cancer detection. With Tencent now on board, Insighta is well-positioned to accelerate clinical development and commercialization efforts. Prenetics remains committed to Insighta's long-term success and will continue to support its groundbreaking work." ABOUT PRENETICS Prenetics PRE, a leading health sciences company, is dedicated to advancing consumer and clinical health. Our consumer initiative is led by IM8, a new health and wellness brand and Europa, the largest sports distribution company in the USA. Our clinical division is led by Insighta, our $200 million joint venture focused on multi-cancer early detection technologies. This is followed by ACT Genomics, which has achieved FDA clearance for comprehensive genomic profiling of solid tumors, and CircleDNA, which uses NGS to offer comprehensive DNA tests. Each of Prenetics' units synergistically enhances our global impact on health, embodying our commitment to 'enhancing life through science'. To learn more about Prenetics, please visit prenetics.com. ABOUT TENCENT Tencent uses technology to enrich the lives of Internet users. Its communication and social services, Weixin and QQ, connect users with each other and with digital content and services, both online and offline, making their lives more convenient. Its targeted advertising service helps advertisers reach out to hundreds of millions of consumers in China. Its FinTech and business services support our partners' business growth and assist their digital upgrade. Tencent invests heavily in talent and technological innovation, actively promoting the development of the Internet industry. Tencent was founded in Shenzhen, China, in 1998. Tencent has been listed on the Main Board of the Stock Exchange of Hong Kong since 2004. Investor Relations Contact: Shannon Devine MZ North America [email protected] (203) 741-8811 Angela Cheung Investor Relations / Corporate Finance Prenetics Global Limited [email protected] ____________________________________ Represents current assets, including cash and cash equivalents, financial assets at fair value through profit or loss, and trade receivables, amongst other accounting line items under current assets based on unaudited management account prior to the closing of the transaction. Market News and Data brought to you by Benzinga APIs