Ready for Rights Issue, Here's the Diagnostic Plan to Develop Genomics

PT DiagnosLab Utama Tbk (IDX: DGNS) is ready to carry out the Pre-emptive Rights (PMHMETD) I or rights issue in the context of the takeover of 97,97% of the shares of Asa Ren Pte Ltd.

Last March, this subsidiary of Bundamedik Healthcare System announced that it would annex the majority share ownership of Asa Ren Pte Ltd, owner of PT Asa Ren Global Nusantara which is a DNA data development startup.

Diagnostics will do rights issue by releasing 921 billion new shares at IDR 25 per share. Through this corporate action, the company will obtain IDR 465 billion which will be used to annex Asa Ren, and the rest will be used for working capital.

"In line with the company's business strategy to continue to improve its financial performance, the company views genetic examination facilities as one part that has an important role in strengthening the company's health support service ecosystem," Diagnos said in a statement quoted from the IDX information disclosure, Wednesday (17/4 ).

Here are a number of consolidated business plans:

1. Research to create research protocols that produce products that can be commercialized.
2. Building a consortium consisting of lab & research, sample collection, technology and innovation, funding, and sponsorship.
3. Building partnerships with companies w to serve as a commercialization partner.
4. Building a branch chain of lab clinics to collect clinical data through partnerships.
5. Building partnerships with pharmaceutical companies to strengthen the development of diagnostic tools, drugs and treatments according to the Indonesian market.

Furthermore, his party also revealed that this corporate action was a strategy to expand the market share of Diagnos and Asa Ren by consolidating and synergizing amidst the development of genomic-based health services. Some of the competitors mentioned are PT Kalbe Farma Tbk, PT Prodia Widyahusada Tbk, 24DNA, and Circle DNA.

Diagnos is a company that owns a network of clinical laboratories, laboratories homecare, to the genomics laboratory. Diagnos was involved several times in funding Asa Ren. Apart from Diagnos, a number of other investors who participated in funding Asa Ren include Kejora Capital, Northstar Ventures, and Marcy Venture Partners.

This corporate action is also in line with Bundamedik Group's efforts to encourage the development of health innovations using biotechnology and genomic approaches.

Asa Ren claims to be one of the first DNA data development startups in Indonesia that utilizes AI technology to provide analytical reports from DNA tests, ranging from health, ancestry, to 360 Report.

Based on financial reports sent to the Singapore regulator, Asa Ren recorded net income of SGD430 thousand (Rp. 5,1 billion), but experienced a net loss of Rp. 33,4 billion throughout 2023.