The Chinese biotech company MGI Tech Co. intends to sell its American subsidiary Complete Genomics Inc., abandoning its presence in the American market amid an unfavorable political situation. This is reported in the MGI press release.
As part of the deal, MGI will sell 100% of Complete Genomics to the Swiss company Rockets AG for $50 million. The deal will create an operating structure that meets local regulatory requirements and ensure the continuous operation of the North American business.
The Chinese genomics company BGI Group, from which MGI was spun off, acquired Complete Genomics in 2013. The US Department of Defense considers BGI and MGI to be “Chinese defense companies” that are subject to restrictions under the recently passed Biosecurity Act, which prohibits some companies from entering into government-funded contracts.
Complete Genomics competes with the American Illumina Inc., which recently returned to the Chinese market after the ban on the import of sequencing equipment was lifted.
As part of the deal, MGI will retain 205 patents previously owned by Complete Genomics. Swiss Rockets will also have to pay MGI licensing fees related to the sale of equipment in the United States and Canada.
MGI Tech Co., Ltd. is a Chinese biotechnology company that manufactures gene sequencing equipment, reagents, and other products for precision medicine, agriculture, and healthcare. The headquarters is located in Shenzhen (China).
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