A Federal High Court in Lagos has issued an injunction halting the sale of defunct biotech 54gene’s assets, marking a dramatic twist in the legal saga engulfing one of Africa’s most celebrated biotech startups.

The injunction prevents the dissolution of 54gene and blocks a planned sale that included a genomic biobank containing data from 100,000 Nigerians—reportedly priced at $3 million.

The court order follows a July 2025 petition by 54gene founder, Dr. Abasi Ene-Obong, who accuses the company’s largest investors, Cathay AfricInvest Innovation Fund and Adjuvant Capital, of engineering the firm’s collapse.

Ene-Obong alleges that both investors bypassed the board, forced the Nigerian arm of the company into bankruptcy, and blocked funding offers, including a $110 million rescue package and a later $35 million deal. He claims he was pushed out as CEO, and that the investors manipulated the company’s valuation to gain control and priority returns.

54gene, once valued at $170 million, shut down in 2023 after post-pandemic revenue losses and failed pivots. Investors reportedly rejected bridge funding proposals and instead pushed for a $100 million Series C round that failed to materialize. Ene-Obong alleges that after his resignation, assets were moved into the Nigerian subsidiary to facilitate a fire sale.

Adjuvant said it acts in the “best interests” of its partners and emphasized its commitment to preserving the biobank for Africa’s benefit. Cathay AfricInvest has not commented.

Founded in 2019, 54gene aimed to close the diversity gap in global genomics by collecting DNA from Africans—who represent the most genetically diverse population.

It played a key role in Nigeria’s COVID-19 response and had raised over $45 million. The court’s decision puts the company’s future—and ownership of sensitive data—on hold pending judgment.