23andMe Co. (NASDAQ: ME), a biotechnology firm that specializes in genomic sequencing, might become a pioneer in customized medicine. The firm has amassed a vast amount of genetic data, which might become its primary source of revenue.
About 12 million individuals have sequenced their genomes using the 23andMe service, and the number is growing, but not as quickly as it was a few years ago. The generated data set may be used to assist pharmaceutical companies in finding new patients for study or to uncover patterns in the genomes of people with similar conditions at the request of pharmaceutical partners.
It’s worth noting that 23andMe has a lengthy history of working with the biotech company GlaxoSmithKline. 23andMe examines genetic data for features that might be relevant in medication development within the conditions of the agreement.
23andMe continues to invest in its main consumer genetic testing technology and identify new applications for it. For example, the FDA recently granted Health Insight authority to give prostate cancer risk reports to its subscribers. Subscribers to health services may now check if they have a cancer-related mutation.
Telemedicine is another aspect of 23andMe’s business. Lemonaid Health, an online pharmacy and health counseling company, was recently acquired by 23andMe, allowing it to join this sector. A strong tailored medical care service may be created by combining a significant quantity of information with remote help technology.
23andMe is still unprofitable, although it had $586 million in cash at the conclusion of the previous quarter. This will allow us to keep moving forward at our present rate for several years. Investing in startups like 23andMe, on the other hand, bears a higher level of risk. Before obtaining sustainable earnings, the company’s well-being is dependent on relationships with pharmaceutical and biotech behemoths.
23andMe Co. (ME) was trading at $4.47 on February 28. The company’s market capitalization is $2.04 billion.