23andMe becomes a personalized healthcare provider

About 23andMe

23andMe has genotyped nearly 12 million customers since its inception in 2006. Most customers allow their genetic info to be used for research. 23andMe is probably the most famous DNA-testing company, but it isn’t the only one. Color and Helix are just two examples of other players in the field. 

The bigger picture

Most of the company’s revenue comes from consumer spit tests, the sales of which have declined recently. With Lemonaid, the company might have found the missing puzzle piece to leverage its testing technology beyond consumers who are interested in their genetic code and ancestry. 

Lemonaid is a combined telehealth and drug delivery startup. It offers care for a specific suite of conditions like anxiety, migraine, flu, and erectile dysfunction. Its medical team reviews the patient’s online assessments and delivers meds from its own pharmacies.

23andMe CEO Anne Wojcicki said the first obvious point of integration will be to leverage 23andMe’s pharmacogenetics reports, which help determine which drugs are most likely to work for an individual, when prescribing drugs through Lemonaid doctors.

We believe the acquisition is a potential big step toward precision medicine, which involves patients receiving tailored treatment instead of one-size-fits-all care. Most health experts agree that precision medicine can lead to significantly more effective treatment. 

Our perspective

The reason precision medicine is not yet widespread is that all players—testing companies, pharmaceutical companies, doctors, and pharmacies—must work in close collaboration to deliver individualized care.

The integration of the 23andMe testing infrastructure with the medical team and the Lemonaid pharmacy makes this acquisition so interesting, and a potential blueprint for future precision healthcare companies.