Genome sequencing specialist 23andMe increased quarterly revenue
The biotech company 23andMe Holding Co. (ME) reported revenue growth in the first quarter of the fiscal year 2023, which ended June 30. A specialist in the field of genetic research is expanding the range of services, although the loss is still high. With the end of the first quarter of the fiscal year, 23andMe’s revenue grew by 9% year-on-year to $65 million. Revenue growth by integrating the telemedicine services business and increased subscription revenue. Thanks to this growth, 23andMe partially offset the decline in sales in other consumer and research services areas.
Operating expenses for the last quarter increased to $115 million compared to $72 million a year earlier. Sales and marketing expenditures from the acquired telemedicine firm also contributed to the overall cost surge. At the same time, research and development costs decreased slightly after the company adopted the royalty option instead of the previous agreement on the division of development costs. The net loss was $90 million compared to a net loss of $42 million in the same period of the previous year. 23andMe has several FDA approvals for genetic health risk reports.
The only company that is allowed to provide reports on the genetic risk of cancer, information about drugs, and their susceptibility to specific people, without the participation of doctors. 23andMe has also created the world’s largest crowdsourcing platform for genetic research, which it uses to implement drug development programs based on human genetics. The company uses its research platform to create a portfolio of more than 50 programs. In recent months, the database has expanded to about 13.1 million people.
