NewGen's IP acquisition valued at $17.9 million boosts NAV per share by $8.9, supporting its transition to a tech-driven company.
Quiver AI Summary
NewGenIvf Group Limited announced the receipt of a valuation report from a leading global accounting firm, establishing the fair value of its recently acquired advanced cytometry intellectual property at US$17.9 million. This acquisition significantly boosts the company's net asset value by approximately US$8.9 per share and provides an immediate Bargain Purchase Gain of US$19.2 million, which is anticipated to positively impact year-end financial results. The acquisition marks a strategic shift for NewGen, transitioning from traditional IVF services to a technology-driven business model focused on high-margin, recurring revenues through licensing and selling consumables. The company aims to secure necessary regulatory approvals and invest in R&D to solidify its position as a technology leader in the fertility market, which is growing rapidly, especially in Asia. NewGen's founder emphasized the strategic importance of this acquisition in enhancing shareholder value and operational capabilities.
Potential Positives
- Independent valuation report sets the fair value of acquired intellectual property (IP) at US$17.9 million, demonstrating significant asset gain for the company.
- Transaction results in a Bargain Purchase Gain of US$19.2 million, boosting the Net Asset Value (NAV) per share by approximately US$8.9.
- Strategic pivot towards becoming a technology-driven innovator positions NewGen to capture significant market share in the growing global fertility services sector.
- Introduction of a capital-light business model with potential for high-margin, recurring revenue through licensing and royalties enhances long-term profitability.
Potential Negatives
- Acquisition of advanced cytometry IP may indicate a shift from NewGen's core IVF services, raising concerns about the company's focus and potential market risks associated with this strategic pivot.
- The reliance on high-margin, recurring revenue from technology licensing and royalty fees introduces uncertainties regarding the company's ability to effectively commercialize the acquired technology and achieve projected financial results.
- The press release includes numerous forward-looking statements that highlight inherent risks and uncertainties, which could lead to actual results deviating significantly from the company's expectations, potentially impacting investor confidence.
FAQ
What is the fair value of NewGen's acquired intellectual property?
The fair value of the acquired IP is set at US$17.9 million, according to a valuation report.
How much did the acquisition boost NewGen's NAV per share?
The acquisition boosted NewGen's Net Asset Value (NAV) per share by approximately US$8.9.
What strategic transition is NewGen undergoing?
NewGen is transitioning from a traditional IVF services provider to a technology-driven innovator in the fertility sector.
How does NewGen plan to generate revenue from the acquired technology?
NewGen aims to generate revenue through licensing, royalty fees, and supplying proprietary consumables to fertility service clinics.
Where are NewGen's fertility clinics located?
NewGen's clinics are located in Thailand, Cambodia, and Kyrgyzstan, offering a full suite of fertility services.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
Valuation Report from Big Four Global Accounting Firm Sets Fair Value of Acquired IP at US$17.9 Million and Boosts NAV per share by about US$8.9
Acquisition Will Aid NewGen’s Transition From IVF Services Provider to Technology-driven Innovator
BANGKOK, Oct. 06, 2025 (GLOBE NEWSWIRE) -- NewGenIvf Group Limited (NASDAQ: NIVF) (“NewGen” or the “Company”), a comprehensive fertility services provider in Asia helping couples and individuals obtain access to fertility treatments, today announced that it has received an independent valuation report (the “Report”) from a Big Four global accounting firm of its recently acquired advanced cytometry intellectual property (the “IP”), the acquisition of which was initially announced on July 29, 2025. The Report sets the fair value of the IP at US$17.9 million. Together with the fair value of the advanced cytometry equipment and other assets obtained from this acquisition, the transaction has resulted in an immediate Bargain Purchase Gain for the Company of US$19.2 million and boosted the Net Asset Value (“NAV”) of the Company by about US$8.9 per share as of the date of this announcement. This gain is expected to significantly enhance the Company’s net profit in its year-end financial results.
The IP is associated with the advanced cytometry technology equipment also acquired by the Company as part of the recent acquisition. This marks a transformative strategic pivot for NewGen, transitioning the Company from its existing traditional IVF services operations to becoming a technology-driven service provider. By leveraging this cutting-edge, patent-protected platform, NewGen expects to generate high-margin, recurring revenue through a capital-light business model. This includes licensing the technology, collecting royalty fees, and supplying proprietary consumables to fertility service clinics. This strategy empowers partner fertility service providers with exclusive, technology-backed solutions but no upfront investment to enhance their service offerings and clinical outcomes.
To solidify its position as a technology leader in the fertility services industry, NewGen is actively pursuing all necessary regulatory approvals/clearance to ensure a seamless path to commercialization. Concurrently, NewGen will establish an in-house research and development team dedicated to advancing innovative solutions and maintaining its competitive edge. This pivot creates a protected blue ocean for growth, establishing a new, scalable path for expansion. With the global fertility services market experiencing significant growth, especially in the Asia Pacific region, this technology positions NewGen to capture significant market share in a sector where 1 in 6 couples worldwide are affected by infertility.
Mr. Siu Wing Fung Alfred, Founder, Chairman, and CEO of NewGen, commented, "This transaction demonstrates our team's ability to identify and execute on highly accretive opportunities in the fertility technology sector. By acquiring this critical IP at a fraction of its fair market value, we have unlocked immediate value for our shareholders while strengthening our technological and operational capabilities. This strategic acquisition positions NewGen as a technology leader, providing cutting-edge solutions and hardware to fertility services providers worldwide, creating a sustainable, competition-protected growth model through royalty-based revenue streams and cost advantages."
About NewGen
NewGen is a comprehensive fertility services provider in Asia helping couples and individuals obtain access to fertility treatments. With a mission to aid couples and individuals in building families regardless of fertility challenges, NewGen has dedicated itself to creating increased access to infertility treatment and providing comprehensive fertility services for its customers. NewGen’s management team collectively has over a decade of experience in the fertility industry. NewGen’s clinics are located in Thailand, Cambodia, and Kyrgyzstan, and present a full suite of services for its patients, including comprehensive infertility and assisted reproductive technology treatments, egg and sperm donation, and surrogacy, in the appropriate jurisdictions, respectively. To learn more, visit www.newgenivf.com . The information contained on, or accessible through, NewGen’s website is not incorporated by reference into this press release, and you should not consider it a part of this press release.
Forward-Looking Statements
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Without limiting the generality of the foregoing, the forward-looking statements in this press release include descriptions of the Company’s financial results, and business strategy. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including the Company’s ability to successfully generate high-margin, recurring revenue, license the technology, collect royalty fees, and supply proprietary consumables to fertility service clinics. You should carefully consider the foregoing factors and the other risks and uncertainties described in the Company’s annual report on Form 20-F and other documents filed or to be filed by the Company with the SEC from time to time, which could cause actual events and results to differ materially from those contained in the forward-looking statements. Copies of these documents are available on the SEC’s website, www.sec.gov. All information provided herein is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Investor Relations Contact
ICR, LLC
Robin Yang
Phone: +1 (212) 537-4406
Email: [email protected]