23andMe is buying Lemonaid for $400M in a bid to lead DNA-based healthcare

12% Greek, 30% Irish, 100% allergic to cats... Also: related to a medieval Spanish king. 23andMe, one of the leading DNA-testing companies, has genotyped nearly 12M customers through its ancestry and health kits. 23andMe went public in June via a SPAC, and shares have fallen 15% since. The bulk of its revenue comes from spit tests, but those kit sales have slowed. Now...

• 23andMe is buying Lemonaid Health for $400M. The telehealth startup offers “affordable” access to care and delivers meds from its own pharmacies.
• 23andMe wants to integrate genetic data with primary care. Lemonaid doctors will use 23andMe's reports to help determine which drugs are best suited to patients.

"You have more neanderthal DNA than 78% of customers”... an example insight from 23's subscription service. It launched with the goal of using genetics to lead a personalized healthcare revolution. It’s been trying to connect the dots between DNA testing and healthcare for years. A whopping 80% of its customers allow their genetic info to be used for research.

• In 2015, 23andMe launched a therapeutics unit to use its saliva samples to develop drugs.
• In 2018, it sold access to users' DNA to pharma giant GlaxoSmithKline, and sealed a four-year deal to collab on drug development.
• In 2019, it sold the rights to a psoriasis drug it developed using its trove of genetic data to pharma company Almirall.
• Last year, it introduced a subscription product called 23andMe+ that gives consumers personalized health info. Think: predispositions for diabetes and celiac and muscle composition.