{"id":888,"date":"2015-12-03T22:48:29","date_gmt":"2015-12-04T03:48:29","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/23andme-evolution-of-a-genomics-company\/"},"modified":"2015-12-03T23:00:09","modified_gmt":"2015-12-04T04:00:09","slug":"23andme-evolution-of-a-genomics-company","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/23andme-evolution-of-a-genomics-company\/","title":{"rendered":"23andMe: Evolution of a genomics company"},"content":{"rendered":"<p>The genome is an individual\u2019s full set of DNA: the genetic code that determines who we are, from our hair color to our hereditary risk of developing heart disease <a href=\"http:\/\/ghr.nlm.nih.gov\/handbook\/basics\/dna\">[1]<\/a>. 23andMe is the first and only service that provides scientifically valid, FDA-approved reports to consumers that analyze their genome and provide insight into health, ancestry, and wellness factors <a href=\"https:\/\/www.23andme.com\/service\/\">[2]<\/a>.<\/p>\n<p>Named for the 23 pairs of chromosomes in a normal human cell, 23andMe has accumulated a user base of over 1M consumers and has raised over $240M in capital since its founding in April 2006 <a href=\"http:\/\/www.nytimes.com\/2015\/10\/21\/business\/23andme-will-resume-giving-users-health-data.html?_r=1\">[3]<\/a>. As of October 2015, 23andMe has yet to turn a profit <a href=\"http:\/\/www.nytimes.com\/2015\/10\/21\/business\/23andme-will-resume-giving-users-health-data.html?_r=1\">[3]<\/a>. However, given the tight alignment between the company\u2019s business and operating models, it is positioned to become one of the greatest success stories in the emerging age of personalized medicine.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-890\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/How-it-works.png\" alt=\"How it works\" width=\"740\" height=\"318\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/How-it-works.png 897w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/How-it-works-300x129.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/How-it-works-600x258.png 600w\" sizes=\"auto, (max-width: 740px) 100vw, 740px\" \/><strong><br \/>\nWhat\u2019s in a database?<\/strong><\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Double-Helix.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-880\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Double-Helix.jpg\" alt=\"\" width=\"220\" height=\"146\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Double-Helix.jpg 849w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Double-Helix-300x200.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Double-Helix-600x400.jpg 600w\" sizes=\"auto, (max-width: 220px) 100vw, 220px\" \/><\/a><\/p>\n<p>At the simplest level, 23andMe\u2019s business model is centered on providing consumers access to their genetic data and helping them understand its implications. The cost of a report is $199, and users can choose to contribute their genetic data to research <a href=\"https:\/\/www.23andme.com\/service\/\">[2]<\/a>.<\/p>\n<p>However, the consumer is only one of the stakeholders to which 23andMe delivers value. Through the accumulation of the world\u2019s largest genomic database, 23andMe holds a wealth of genetic information that contains clues about (and potentially cures to) some of society\u2019s most pervasive diseases <a href=\"https:\/\/www.23andme.com\/service\/\">[2]<\/a>.<\/p>\n<p>Large pharmaceutical companies and biotechs have taken note. Many big names in drug discovery have teamed with 23andMe to not only gain access to users\u2019 genetic and personal information for research purposes (provided with user consent and anonymized), but to assist in recruiting eligible patients into clinical trials <a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2015-01-12\/23andme-gives-pfizer-dna-data-as-startup-seeks-growth\">[4]<\/a>. A January 2015 deal with Genentech yielded an upfront payment to 23andMe of $10M, with further milestones of as much as $50M\u00a0<a href=\"http:\/\/www.forbes.com\/sites\/matthewherper\/2015\/01\/06\/surprise-with-60-million-genentech-deal-23andme-has-a-business-plan\/\">[5]<\/a>.<\/p>\n<p>Such a deal has the potential to generate the same amount of revenue as would increasing the size of 23andMe\u2019s customer base by half ($299\/kit x an additional 500K users = ~$60M), and the Genentech partnership is only one of over ten industry collaborations underway\u00a0<a href=\"http:\/\/www.forbes.com\/sites\/matthewherper\/2015\/01\/06\/surprise-with-60-million-genentech-deal-23andme-has-a-business-plan\/\">[5]<\/a>. By leveraging its core asset\u2014a robust genomic database supplemented by user-provided lifestyle information\u201423andMe has expanded its business model beyond the consumer and captured additional value generated through its operations.<\/p>\n<p><strong>The power of partnerships<img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-874\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Article.png\" alt=\"Article\" width=\"252\" height=\"225\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Article.png 648w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Article-300x268.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Article-600x536.png 600w\" sizes=\"auto, (max-width: 252px) 100vw, 252px\" \/><\/strong><\/p>\n<p>23andMe\u2019s competitive advantage depends on continuing to accumulate and analyze consumer genetic and personal information. One of the ways the company is reaching new consumers is through collaborations with patient advocacy and research organizations such as the Michael J. Fox Foundation for Parkinson\u2019s disease <a href=\"https:\/\/www.michaeljfox.org\/foundation\/news-detail.php?nearly-10-000-strong-23andme-pd-research-community-drives-genetic-research-toward-potential-new-drugs\">[6]<\/a>. 23andMe provides free genetic testing kits to members of the patient community, and in exchange, the patient organization encourages members to enroll in the service <a href=\"http:\/\/discovermagazine.com\/2012\/jan-feb\/56\">[7]<\/a>. In the case of the Parkinson\u2019s collaboration, 23andMe was able to catalog the genomic data of thousands of patients with Parkinson\u2019s disease in record time <a href=\"http:\/\/discovermagazine.com\/2012\/jan-feb\/56\">[7]<\/a>. In 2014, they published the discovery of six new genetic regions associated with the disease that provide promising targets for therapeutic intervention <a href=\"http:\/\/www.nature.com\/ng\/journal\/v46\/n9\/full\/ng.3043.html\">[8]<\/a>.<\/p>\n<p>The company has established additional research partnerships with leading academic institutions, including the Broad Institute at\u00a0MIT and 性视界, Stanford University and the University of Chicago. In whole, 23andMe has formed cross-industry\u00a0collaborations that span the public and private sector and unite some of the brightest minds in research. The company has received four grants from the U.S. National Institutes of Health to fund research and has identified hundreds of new genetic associations <a href=\"https:\/\/www.23andme.com\/research\/\">[9]<\/a>.<\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Quote.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-883 alignleft\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Quote.png\" alt=\"Quote\" width=\"235\" height=\"220\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Quote.png 314w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Quote-300x282.png 300w\" sizes=\"auto, (max-width: 235px) 100vw, 235px\" \/><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-876 aligncenter\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Partners1.png\" alt=\"Partners\" width=\"742\" height=\"242\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Partners1.png 908w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Partners1-300x98.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Partners1-600x196.png 600w\" sizes=\"auto, (max-width: 742px) 100vw, 742px\" \/><\/a><\/p>\n<p><strong>A\u00a0new frontier<\/strong><\/p>\n<p>Perhaps it was inevitable that 23andMe evolve from facilitating drug research to conducting its\u00a0own pharmaceutical discovery efforts. In March 2015, the company announced that in addition to continuing its industry partnerships, it will begin\u00a0inventing\u00a0medicines in house <a href=\"http:\/\/www.forbes.com\/sites\/matthewherper\/2015\/03\/12\/23andme-enters-the-drug-business-just-as-apple-changes-it\/\">[10]<\/a>. A drug in clinical trials can be worth hundreds of millions of dollars, and a therapy that makes it to market can be worth billions <a href=\"http:\/\/www.forbes.com\/sites\/matthewherper\/2015\/03\/12\/23andme-enters-the-drug-business-just-as-apple-changes-it\/\">[10]<\/a>. If the discovery efforts are successful, 23andMe will capture yet another portion of the value generated by its genomic database.<\/p>\n<p>While 23andMe is unprofitable to date, the company has secured multiple paths to monetization by leveraging its core assets. More importantly, by returning the patient to the center of drug discovery it has the potential to\u00a0transform the way that medical science advances.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What started as at-home DNA testing has evolved into the next generation of personalized medicine. <\/p>\n","protected":false},"author":834,"featured_media":889,"comment_status":"open","ping_status":"closed","template":"","categories":[23,208,37,213,94,212,7],"class_list":["post-888","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-courier","category-health","category-innovation","category-patient","category-startup","category-tech","category-winner"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>23andMe: Evolution of a genomics company - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/23andme-evolution-of-a-genomics-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"23andMe: Evolution of a genomics company - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"What started as at-home DNA testing has evolved into the next generation of personalized medicine.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/23andme-evolution-of-a-genomics-company\/\" \/>\n<meta property=\"og:site_name\" content=\"Technology and Operations Management\" \/>\n<meta property=\"article:modified_time\" content=\"2015-12-04T04:00:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Logo.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"401\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/23andme-evolution-of-a-genomics-company\\\/\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/23andme-evolution-of-a-genomics-company\\\/\",\"name\":\"23andMe: Evolution of a genomics company - Technology and Operations Management\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/23andme-evolution-of-a-genomics-company\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/23andme-evolution-of-a-genomics-company\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2015\\\/12\\\/Logo.jpg\",\"datePublished\":\"2015-12-04T03:48:29+00:00\",\"dateModified\":\"2015-12-04T04:00:09+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/23andme-evolution-of-a-genomics-company\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/23andme-evolution-of-a-genomics-company\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/23andme-evolution-of-a-genomics-company\\\/#primaryimage\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2015\\\/12\\\/Logo.jpg\",\"contentUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2015\\\/12\\\/Logo.jpg\",\"width\":600,\"height\":401,\"caption\":\"This image provided 23andMe shows the company's logo. The U.S. Food and Drug Administration is ordering genetic test maker 23andMe Monday, Nov. 25, 2013, to halt sales of its personalized DNA test kits, saying the company has failed to show that the technology is backed by science. (AP Photo\\\/23andMe)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/23andme-evolution-of-a-genomics-company\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Submissions\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"23andMe: Evolution of a genomics company\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\",\"name\":\"Technology and Operations Management\",\"description\":\"MBA Student Perspectives\",\"potentialAction\":[{\"@type\":\"性视界Action\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"23andMe: Evolution of a genomics company - Technology and Operations Management","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/23andme-evolution-of-a-genomics-company\/","og_locale":"en_US","og_type":"article","og_title":"23andMe: Evolution of a genomics company - Technology and Operations Management","og_description":"What started as at-home DNA testing has evolved into the next generation of personalized medicine.","og_url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/23andme-evolution-of-a-genomics-company\/","og_site_name":"Technology and Operations Management","article_modified_time":"2015-12-04T04:00:09+00:00","og_image":[{"width":600,"height":401,"url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Logo.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/23andme-evolution-of-a-genomics-company\/","url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/23andme-evolution-of-a-genomics-company\/","name":"23andMe: Evolution of a genomics company - Technology and Operations Management","isPartOf":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website"},"primaryImageOfPage":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/23andme-evolution-of-a-genomics-company\/#primaryimage"},"image":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/23andme-evolution-of-a-genomics-company\/#primaryimage"},"thumbnailUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Logo.jpg","datePublished":"2015-12-04T03:48:29+00:00","dateModified":"2015-12-04T04:00:09+00:00","breadcrumb":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/23andme-evolution-of-a-genomics-company\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/d3.harvard.edu\/platform-rctom\/submission\/23andme-evolution-of-a-genomics-company\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/23andme-evolution-of-a-genomics-company\/#primaryimage","url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Logo.jpg","contentUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Logo.jpg","width":600,"height":401,"caption":"This image provided 23andMe shows the company's logo. The U.S. Food and Drug Administration is ordering genetic test maker 23andMe Monday, Nov. 25, 2013, to halt sales of its personalized DNA test kits, saying the company has failed to show that the technology is backed by science. 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