23andMe鈥� and my likelihood of going bald
23andMe pairs its database of genotypes with user-reported phenotypes to uncover new targets for drug discovery
23andMe is a personal genetics company that offers two forms of genotype听analysis to consumers: Ancestry ($99) and Ancestry + Health ($199) . Consumers simply spit in a vial, mail it to 23andMe for analysis, and receive detailed reports听on Ancestry, Carrier Status, Wellness and Traits.
In addition to providing this consumer service,听23andMe also takes听the data they receive from consumer genotype听analyses and combine it with user-reported phenotype听data (from over 80% of its consumers!) to create and capture value听with partner research organizations. Analysis of the听more-than 320 million phenotype:genotype data points, has led to听45 peer-reviewed studies in scientific journals, and听better understanding of … balding.
Last month,听the 23andMe research team announced findings from their collaboration听with the University of Bonn, where they identified听63 genetic variants associated with balding, 22 of which were novel. This study of 17,000 23andMe customers both helped advance the understanding of the biological mechanisms behind male pattern baldness and the health conditions associated with it. One particularly lucrative value creating result is the identification of potential drug targets for pharmaceutical companies.
https://blog.23andme.com/23andme-research/the-role-of-genetics-in-male-pattern-baldness/
Interestingly, this data analysis differs from its competitors in the pharmaceutical industry by flipping the drug discovery process on its head. Instead of screening millions of drugs against various targets in a shotgun style approach, the 23andMe model uses its vast database to look听directly at statistically significant associations of genotype and phenotype pairs to zero-in on potential targets before recommending听any actual drug screening for any听condition. Additionally, a secondary outcome is identifying novel drug targets for associated conditions听and subsequently being able to repurpose existing drugs for new conditions.
Precisely how much听23andMe captures this value is non-public information, but it is clearly significant. Largely through the development and progress of their “therapeutics” research organization, 23andMe was able to attract venture capital听investment at a unicorn valuation ($1.1B in Oct 2016).
23andMe started out as a pure consumer play amassing over 1 million customers of its consumer products. Realizing the value of their data, the team shifted toward their current research and analytics focus. The primary challenges they have faced along the way include growing the consumer business through marketing, developing a reliable听user-reported phenotype dataset through clever user experience design, and gaining the requisite听trust for effective research partnerships with academic and private institutions… all while .
While this is indeed exciting and potentially promising value creation, the sustainability of 23andMe听model is uncertain听for two main reasons. First, it will be a long and difficult road to actually听prove 23andMe听can succeed in helping to bring a new, impactful听drug to market. In the听12 years, give or take, that it takes for a drug to make听it through FDA clinical trials, both belief听(and funding) from pharmaceutical partners could easily run out.听Second, as the cost of genetic sequencing plummets, market-leading听full-genome sequencers like Illumina could offer similar services听at comparable prices with data at听a much higher genetic resolution. Technically, 23andMe only analyzes genotype听data from听less than 1% of the genome through a carefully selected and much simpler diagnostic assay.
In any case, there is (distant) hope for the bald.
https://www.23andme.com/stories/
https://techcrunch.com/unicorn-leaderboard/
http://gizmodo.com/23andme-is-back-in-the-genetic-testing-business-with-fd-1737917276
https://www.forbes.com/sites/matthewherper/2017/01/09/illumina-promises-to-sequence-human-genome-for-100-but-not-quite-yet/
Great post, Erik! The company sounds like it’s doing some really interesting work. One question for you: how to they handle privacy and ethical concerns? I feel like that would be my main reservation in the decision making process of whether or not to use the service, especially if the data would be shared with third-parties. Thanks!