In the face of the COVID-19 pandemic, many companies in the healthcare sector faced unprecedented challenges. For 54gene, a genomics research and diagnostics company focused on African genetics, these challenges were met with innovative solutions and strategic financial management.

Ifeoma Taylor, the Financial Controller at 54gene, played a crucial role in this process, demonstrating that finance professionals can significantly impact a company’s bottom line. Her work in developing a pricing model and dashboard for COVID-19 testing, which garnered approval from State Consortiums, not only ensured the financial viability of these initiatives but also drove substantial revenue growth for the company.

As a Finance professional at 54gene, your work has significantly impacted the company’s bottom line, particularly with the launch of the COVID-19 mobile labs. Could you tell us about your role in this initiative?

During the COVID-19 pandemic, we recognised the urgent need for accessible testing. As the Financial Controller at 54gene, I developed a pricing model and a comprehensive dashboard for COVID-19 testing, both of which were critical in navigating this challenge.

Creating a pricing model for COVID-19 testing must have been complex. Can you elaborate on the key elements you considered in this process?

Certainly. The pricing model was essential to ensure that our tests were both accessible and financially viable. I started with a comprehensive cost analysis, looking into procurement costs, operational expenses, logistics, and personnel. We needed a realistic financial foundation. Then, we conducted a market analysis to understand the competitive landscape and demand elasticity. Volume projections and scalability were also crucial, as we had to ensure the model could adapt to different demand levels. Additionally, I explored potential subsidies and grants to keep costs manageable for end-users while maintaining profitability for 54gene.

How did the dashboard complement the pricing model?

The dashboard served multiple purposes. It was instrumental in operational monitoring, tracking key performance indicators like turnaround times, testing volumes, and lab capacity utilization. Financial performance was another critical aspect; the dashboard provided detailed financial reports, including revenue, cost breakdowns, and profit margins. It also helped manage demand and supply, ensuring we met testing demand without overstocking or facing shortages. Lastly, the dashboard was invaluable for stakeholder communication, offering transparent, real-time data to state governments and health organizations.

It’s impressive that State Consortiums adopted your pricing model and dashboard as a benchmark to set up a fixed price that was implemented by all lab participants. What factors contributed to this adoption?

The adoption was driven by several factors. Our pricing model was cost-effective, making large-scale testing affordable for states. The operational transparency provided by the dashboard allowed state governments to make informed public health decisions. Additionally, the scalability and flexibility of our model made it suitable for various demand levels, which was highly attractive for state-level implementation.

How did your contributions impact 54gene’s bottom line?

Our COVID-19 testing initiative led to substantial revenue growth, with testing volumes increasing significantly and a cumulative annual growth rate of 850%. Contracts with state governments and private entities generated substantial revenue. The dashboard improved operational efficiency, reducing costs and increasing profit margins. Our success also enhanced 54gene’s market positioning and brand strength, opening up further business opportunities and partnerships. Strategically, we maintained fiscal soundness during rapid expansion, balancing cost management with growth initiatives. The transparency of our operations built stakeholder confidence, helping us secure further funding and investment opportunities.

Your strategic financial management played a pivotal role during the pandemic. What lessons did you take away from this experience?

One key lesson is the importance of adaptability and innovation in times of crisis. Effective financial leadership involves not just managing costs but also seizing opportunities for growth and innovation. Transparency and real-time data are crucial for making informed decisions and building stakeholder trust. Lastly, scalability and flexibility in our financial models can ensure sustainable operations even in fluctuating demand scenarios.