Just over a year ago, 23andMe’s co-founder and CEO Anne Wojcicki was assuring the life sciences industry that the company was a “full-fledged biotech” committed to drug R&D.
“We have real labs,” she told PharmaVoice at the time. “Scientists, pipettes. Doing functional genomics experiments. We have 100 people doing therapeutics research. We have gone entirely from genetic data, hypothesis, early research, to filing an IND and actually in human studies with a phase 2a program.”
Fast forward 13 months and the picture has changed dramatically for 23andMe. After its stock price dropped 99% from its peak in 2021 and the company announced a data breach that compromised 6.9 million customers, 23andMe has scrapped its in-house drug development program; slashed 40% of its workforce; seen its entire board of independent directors resign; and hung onto its place on the Nasdaq by the skin of its teeth.
Now, the company is figuring out a way forward, not only for its business but for the genetic data of more than 15 million customers.
Here’s what’s next for 23andMe.
It’s slashing drug R&D
The future of 23andMe’s clinical-stage assets remains up in the air as the company explores “all strategic options for a limited time,” the company said in a Nov. 11 press release announcing the restructuring plan. In the meantime, it intends to “wind-down” its clinical trials. Possible steps forward include “licensing agreements, asset sales or other transactions.”
23andMe’s clinical-stage therapeutics program consisted of two cancer assets: 23ME-00610, a phase 1/2a monoclonal antibody being studied in patients with neuroendocrine tumors and clear-cell renal-cell carcinomas; and 23ME-01473, a phase 1 therapeutic antibody that aims to restore anti-tumor immunity.
When asked for details about the future of these assets, a company spokesperson directed PharmaVoice to its Nov. 11 press release.
“We continue to believe in the promise shown by our clinical and preclinical stage pipeline and will continue to pursue strategic opportunities to continue their development,” Wojcicki said in the release.
It’s still forging deals with pharma
Just weeks after scrapping its therapeutics program and cutting 200 jobs, 23andMe announced a new collaboration to advance Mirador Therapeutics’ precision medicine research in immunology and inflammation.
There could be more to come. During an earnings call in November, Wojcicki said 23andMe will continue “to pursue collaborations with pharmaceutical and biotech companies as part of [its] mission to help people benefit from the human genome. These collaborations run across several areas, including drug target discovery and validation, clinical trial recruitment efforts and disease awareness, among others.”
Under the newest deal, Mirador, which launched in March, will tap 23andMe’s genetic and phenotypic database to augment its own repository of immune-mediated disease data, dubbed Mirador360.
Mirador is the latest company to use 23andMe’s vast genetic database for drug target discovery and development. It’s also worked with large pharmas, most notably GSK.
It continues to launch new offerings
Despite a tumultuous quarter, 23andMe rolled out several new offerings, including a genetic report on emotional eating for 23andMe+ Premium subscribers and an AI chatbot dubbed “DaNA” to help customers identify “actionable insights” from their health and other data, such as lifestyle changes.
“At the end of the day, we’re consumer-empowering,” Wojcicki told PharmaVoice last year.
23andMe’s financial woes stem partly from its business model, since its one-time genetic tests don’t lend themselves to repeat customers. But new products could entice customers to stick around for more.
23andMe is also attempting to cash in on the semaglutide wave by launching a GLP-1 weight loss membership on its telehealth platform, Lemonaid Health, which it acquired in 2021. The platform allows members to receive clinical consultations and brand-name or compounded semaglutide medications, including Ozempic and Wegovy.
In addition, 23andMe launched and enrolled thousands of participants in a new study to understand how genetics affects GLP-1 efficacy, side effects and length of treatment.
It can’t promise its genetic data will be safe forever
Wojcicki has been against selling 23andMe. But if the company was subject to a third-party takeover, what would happen to the privacy and security of its genetic data?
The answer is up in the air. HIPAA laws that protect patient privacy don’t apply to 23andMe, and state genetic privacy laws vary. Although 23andMe says it's committed to privacy, the same isn’t necessarily true of a third-party buyer.
“Having to rely on a private company's terms of service or bottom line to protect that kind of information is troubling,” Vera Eidelman, a staff attorney with the American Civil Liberties Union, told NPR.
