23andMe posts net loss of $217 million in ‘transition’ fiscal year

23andme reported a net loss of $217 million in its 2022 fiscal year, which ended March 31, compared with $184 million in the prior year.

The consumer genetics company also reported a loss of $70 million in its fourth quarter, compared to $67 million in the fourth quarter of 2021. its newly acquired telehealth segment.

Meanwhile, the company pointed to these operating expenses and therapeutics-related research and development costs for the increase in its net loss for the year.

Total fourth quarter revenue was $101 million and $272 million for the yearincreases of 14% and 11% respectively, compared to the periods of the previous year.

23andMe expects revenue for fiscal year 2023 to be between $260 million and $280 million, and full-year GAAP net loss to be between $350 million and $370 million.

“Fiscal 2022 was a year of transition for 23andMe. It was highlighted by our IPO in June 2021, followed in November by the strategically important acquisition of Lemonaid Health, which now underpins our planned IPO. of a genomic health service,” said CFO Steve Schoch. said during an earnings call.

THE GREAT TREND

In October, 23andMe announced it signed a definitive agreement to acquire telehealth and online prescription platform Lemonaid Health. The deal closed in November.

The company plans to use the Lemonaid offering as part of its genomic health service, where customers can access their genetic information for preventive and personalized care.

“Our efforts on the consumer side will now focus on building a bridge between health risk awareness and health risk and disease management with our new genomic health services,” said CEO and co-founder Anne Wojcicki on the call.

“Over the next few years, we plan to focus on the direct-to-consumer self-payment market. Once we establish ourselves in the DTC market, we can consider expanding into other channels. This effort began with our acquisition and integration of Lemonaid Health and their telehealth and digital pharmacy services.”

23andMe has also worked on using its genetic data for the research and development of new drugs. Earlier this year, the pharmaceutical giant GlaxoSmithKline has extended its drug discovery partnership through July 2023.

REGISTRATION

“In the coming year, we plan to take a more cautious overall approach to our use of cash, prioritizing the deployment of our next-generation genomic health service and advancing our therapeutic efforts. . We believe appropriate investments in these areas will provide our best opportunities for future growth,” Schoch said in a statement.

Ann J. Cox