2023: 23andMe at Risk of Becoming Irrelevant in the Face of Whole Genome Sequencing Disruption
March 30, 2023
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With the emergence of whole genome sequencing, I believe 23andMe is at risk of becoming irrelevant in the coming years. Whole genome sequencing is a new technology that can take a person’s entire genetic code and analyze it for a variety of traits. This allows for a much more comprehensive view of a person’s genetic makeup, whereas 23andMe focuses on specific parts of the genome. As whole genome sequencing becomes more widely used, 23andMe may find itself unable to compete with its more comprehensive counterparts. The increased accuracy and detail of whole genome sequencing may also lead to more accurate diagnostics and treatments, which could further reduce the need for 23andMe.
Additionally, 23andMe uses a limited sample size compared to whole genome sequencing, which could lead to inaccurate results in some cases. With the combination of more extensive testing options and more accurate treatments, 23andMe may face increasing competition in the coming years. For these reasons, I rate 23ANDME HOLDING ($NASDAQ:ME) as a cautionary investment. As the technology continues to evolve and become more widely used, 23andMe could find itself unable to compete in an increasingly competitive marketplace.
Market Price
For now, news on 23ANDME HOLDING has been mostly negative, and on Wednesday the company’s stock opened at $2.2 and closed at $2.2, up by a mere 3.2% from the previous closing price. This suggests that investors are not optimistic about the company’s future despite recent reports of progress in the industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for 23andme Holding. More…
| Total Revenues | Net Income | Net Margin |
| 307.67 | -317.1 | -103.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for 23andme Holding. More…
| Operations | Investing | Financing |
| -155.63 | -11.21 | 12.69 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for 23andme Holding. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.02k | 273.66 | 1.8 |
Key Ratios Snapshot
Some of the financial key ratios for 23andme Holding are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -105.4% |
| FCF Margin | ROE | ROA |
| -54.2% | -25.8% | -19.8% |
Analysis
At GoodWhale, we have recently used our proprietary tools to analyze the financials of 23ANDME HOLDING. Our Risk Rating for the company is medium, indicating that it is a potentially viable investment from both a financial and business perspective. We have identified one risk warning in the company’s cashflow statement, which our users can view by signing up on our website. Our insights on 23ANDME HOLDING provide an objective overview to make well-informed investment decisions. More…
Peers
The company offers a range of tests, including those for ancestry, health, and wellness. Its competitors include IQVIA Holdings Inc, Illumina Inc, and Avricore Health Inc.
– IQVIA Holdings Inc ($NYSE:IQV)
In 2022, IQVIA Holdings Inc had a market capitalization of $40.44 billion and a return on equity of 21.52%. The company provides data, information and technology solutions that help customers drive healthcare insights and solutions.
– Illumina Inc ($NASDAQ:ILMN)
Illumina Inc has a market cap of 34.93B as of 2022, a Return on Equity of -29.49%. The company is a provider of sequencing and array-based solutions for genetic analysis. The company’s products are used by researchers, physicians, patients and parents to make better decisions about health, agriculture, pharmaceuticals, research and many other areas.
– Avricore Health Inc ($TSXV:AVCR)
Avricore Health Inc is a Canadian biotechnology company that develops and commercializes products for the early detection and prevention of chronic disease. The company has a market cap of 25.4 million as of 2022 and a return on equity of -46.21%. Avricore’s products are based on its proprietary technology, which uses a combination of blood tests and genetic tests to identify individuals at risk for developing chronic diseases such as heart disease, stroke, and cancer.
Summary
23andMe Holding is a biotechnology company that offers genetic testing services for consumers. In recent news, there are concerns that the company may become irrelevant due to the emergence of whole genome sequencing. Despite this, the stock price has been increasing. From an investing perspective, investors should consider the changing trends in the industry, the competitive landscape, and the company’s ability to adapt to new technology.
Additionally, they should evaluate financials such as revenue, profits, and cash flow, along with their current and future product offerings. With these factors in mind, it is important for investors to make an informed decision on whether to invest in 23andMe Holding.
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