Yandex selling telemedicine division to Genotek

MOSCOW. Sept 16 (Interfax) - Yandex is selling its telemedicine business under the Yandex Health brand to the Genotek genetic research company, the internet company said.

Telemedicine has been an experimental business for Yandex since 2016.

The amount of the deal has not been disclosed.

Yandex will transfer the Yandex Health mobile app and web interface as part of the sale. The company will also provide Genotek with the opportunity to use the service's trademark for 1.5 years.

"Any health-related service requires serious expertise and attention. The sale of Yandex Health will help maintain the service and support for users and partner doctors," the company said.

Yandex also plans to focus on developing health-related information services, such as searching for doctors, as well as creating and using neural networks in medicine.

Founded in 2010, Genotek is a genetic research and personalized medicine company. Yandex led a $4 million investment round in 2020, becoming one of the company's shareholders. The internet company at the same time said that its representative would join the Genotek board of directors.

Genotek's investors also included former head of Russia's presidential administration Alexander Voloshin; Pharmstandard founder Victor Kharitonin; with both Voloshin and Kharitonin joining the company's board of directors at the time; and former Rusagro CEO Maxim Basov.

Unified State Registry of Legal Entities (USRLE) data indicate that Valery Ilyinsky, who owns 80% of Genotek LLC, is one of the founders. Genotek Holding LLC, which is wholly owned by Cyprus-based Genotek Holdings Ltd, owns the remaining 20%.

Genotek LLC boosted revenue 2.5% year-on-year to 622.37 million rubles in 2023, and net loss dropped to 39.7 million rubles from 106.7 million rubles in 2022.