ME - This Biotech Company Could Offer Nearly Unlimited Optionality
Newly public 23andMe (NASDAQ: ME) presents investors with a unique opportunity in the personalized healthcare industry. Having drawn the attention of Virgin Group Acquisition Corporation (NYSE: VGAC) , 23andMe went public via special purpose acquisition corporation (SPAC) and raised roughly $600 million in cash, giving the company a $3.5 billion valuation. Although it's well-known for its ancestry services, 23andMe has its vision set far beyond this popular DNA test. Entering a partnership with GlaxoSmithKline (NYSE: GSK) in 2018, the companies agreed to a 50-50 split on profits and costs associated with a therapeutic program started by the duo. In return for this, GlaxoSmithKline agreed to a $300 million equity payment and an additional $100 million in cash payments to be made to 23andMe over four years.
After this agreement and its IPO , 23andMe has $770 million in cash to fuel its multiple growth options. As the company looks to build off its 11.6 million genotyped customers, 23andMe offers intriguing growth optionality through its ancestry services, personalized healthcare offerings, and therapeutic programs.
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This Biotech Company Could Offer Nearly Unlimited Optionality