| > Presumably they are selling their genetic data, but I don't get why it's not giving them a revenue stream. Let GSK manufacture the drugs using your genetic info, with a profit share for any drugs made this way. They mention a collaboration with GSK in the article, but why was this stopped? In 2018 GSK made a $300M equity investment in 23andMe as part of a 4 year collaboration (with the option to extend for a fifth year) under which GSK had exclusive access to their data for use in drug target discovery programs, but [0]: > All activities within the collaboration will initially be co-funded (50%/50%), with either company having certain rights to reduce its funding share for any collaboration programme. So it seems they not only lost out on 5 years of developing their B2B business, but committed to covering a portion of the R&D costs over that period as well. There were terms about profit sharing on new developments, so it was a bet. It doesn't sound like it worked out quite as well as either sided hoped though because in October 2023 (after the 5 year agreement) they entered into another agreement but this time [1]: > Under an amendment to their Collaboration Agreement, 23andMe will receive a $20 million upfront payment for a one year, non-exclusive data license.
> [...]
> for a 12-month period, and [23andMe will] offer its research services for analyses of the data over that same period. Any new drug discovery programs that GSK chooses to initiate during the agreement will be owned and advanced solely by GSK. [0]: https://www.gsk.com/en-gb/media/press-releases/gsk-and-23and... [1]: https://investors.23andme.com/news-releases/news-release-det... |