According to a press release published on Thursday, the company plans to launch a weight-loss membership program on its telemedicine platform Lemonaid by the end of this month. Users will be able to obtain brand-name drugs or combination preparations of semaglutide, the active ingredient in the Novo Nordisk blockbuster weight-loss drug, on the platform. 23andMe also plans to launch a new genetic study focusing on popular diabetes and weight-loss drugs to identify gene variants associated with weight loss and side effects.
Struggling genomics and biotechnology company 23andMe is entering one of the hottest markets in healthcare -- the weight loss drug market.
According to a press release published on Thursday, the company plans to launch a weight-loss membership program on its telemedicine platform Lemonaid by the end of this month. Users will be able to obtain brand-name drugs or combination preparations of semaglutide, the active ingredient in the Novo Nordisk blockbuster weight-loss drug, on the platform. 23andMe also plans to launch a new genetic study focusing on popular diabetes and weight-loss drugs to identify gene variants associated with weight loss and side effects.
Entering the popular GLP-1 drug market is a new strategy for 23andMe, aimed at boosting its stock price and sales.
The release of the above news comes as 23andMe reported lower-than-expected first-quarter revenue. 23andMe's revenue this quarter is $40 million, far below analysts' expected $52.1 million.
Due to the slowdown in demand for DNA testing, the company's stock has lost nearly 60% of its market cap this year, closing at $0.3729 on Thursday.
When 23andMe agreed to go public in 2021, its valuation was $3.5 billion, but the company's stock has been performing poorly, trading below Nasdaq's minimum of $1 for almost a year. 23andMe must increase its stock price by November to remain compliant and continue trading.
Recently, 23andMe has turned to offering subscription-based products in hopes of creating repeat customers for its consumer business. However, this approach has not yet reached the company's initial target for registered users.
A few days ago, 23andMe rejected CEO Anne Wojcicki's proposal to take the company private, which was to buy outstanding shares at a price of $0.40 per share. An independent committee expressed disappointment in the proposal in a letter, as it did not offer a premium above the stock price and lacked funding commitments.