DeepSummary
The podcast episode discusses the struggles faced by the genetic testing company 23andMe, whose stock value has plummeted from a $6 billion valuation to nearly zero, prompting threats from the Nasdaq to delist the company. Ralph Winkler from the Wall Street Journal explains that while the company initially gained popularity by offering DNA ancestry tests, it failed to generate profits and make its business model sustainable.
Winkler reveals that 23andMe's plan was to utilize the collected DNA data for drug development and research. However, this ambitious goal required significant funding and resources beyond the company's means. Despite identifying over 50 potential drug candidates, only two have reached human trials, and the company has already gone through multiple rounds of layoffs to cut costs.
The episode also touches on the recent data breach at 23andMe, where millions of customer accounts were compromised. Winkler notes that while the company cited password reuse as the issue, it highlights privacy concerns surrounding DNA testing. Despite these challenges, the CEO Anne Wojcicki remains committed to the company's mission of using genetic data to develop drugs and reshape healthcare delivery.
Key Episodes Takeaways
- 23andMe, a genetic testing company, experienced a dramatic fall in its stock valuation from $6 billion to near zero, facing potential delisting from the Nasdaq.
- While initially successful with DNA ancestry tests, 23andMe failed to generate profits and aimed to leverage customer DNA data for drug development.
- The company's ambitious drug development plans, including over 50 potential drug candidates, were hindered by significant financial constraints and resources required for regulatory approval.
- 23andMe underwent multiple rounds of layoffs and cost-cutting measures to address its financial woes.
- The company's CEO, Anne Wojcicki, remains committed to the mission of using genetic data for drug development and reshaping healthcare delivery.
- A recent data breach at 23andMe, compromising millions of customer accounts, raised privacy concerns surrounding DNA testing.
- The episode highlights the challenges faced by companies pursuing ambitious goals in the healthcare and biotech sectors, where substantial funding and resources are required for successful product development.
- Despite setbacks, the episode suggests that the potential of leveraging genetic data for drug development and personalized healthcare remains a compelling area of exploration.
Top Episodes Quotes
- “They had gotten hundreds of thousands of people to spin into one of their test tubes to give a DNA sample. Then all of a sudden, the stories are spreading of people finding new parents or finding siblings they never knew about, and it becomes this very viral holiday gift.“ by Ralph Winkler
- “They say they've identified 50 plus drug candidates, which are possible drugs that if their research continues to go in the right direction, could eventually get into human trials. Then after human trials, maybe to a drug approval, two of those 50 plus are already are in human trials.“ by Ralph Winkler
- “The problem is, it takes a lot of money and a lot of time to get even one drug through that pipeline all the way to an FDA approval. And they don't have a lot of money to support that effort.“ by Ralph Winkler
Entities
Company
Person
Concept
Episode Information
Marketplace Tech
Marketplace
2/13/24
23andMe has seen its valuation plummet from $6 billion to close to zero, with the Nasdaq threatening to delist the company’s stock. Still, company leaders have high hopes for medical research and a pivot to biotech. Rolfe Winkler has been writing about what happened for The Wall Street Journal, and discussed the company’s financial woes and future roadmap with Marketplace’s Lily Jamali.