Nucleus Genomics explores the possibility of acquiring 23andMe
Nucleus is considering the possibility of making a public offer to acquire 23andMe, contingent on financing, as well as initiating and executing a successful negotiation.
Our goal would be simple: Revitalize consumer health care with rapid innovation, security, and value. Across the industry today, there is arguably no company in as strong of a position as Nucleus to deliver on this goal.
We’re fortunate to deliver clinical-grade insights to customers nationwide who trust us to provide complete genetic analyses for 170 genetic diseases across two dozen health reports. And we’re poised to grow rapidly. Just three months after serving our first customer, we’re on track to cross millions of dollars in run rate in the next year.
Since going public in 2021, 23andMe’s value has fallen by more than $5 billion and the value of its shares have dropped close to 100%. Naturally, some have concluded that these numbers are a sign that the era of consumer genetic testing is ending.
Nothing could be further from the truth. For Nucleus and our investors, we know the downfall of an industry giant combined with our strong early traction means the demand for accessible, secure, and meaningful health innovation has never been higher.
Just like the collapses of Blackberry, Myspace, and Blockbuster didn’t signal the end of smartphones, social media, and streaming, the collapse of 23andMe is an opportunity for Nucleus to deliver the same disruption in genetics.
Americans today spend over $450 billion dollars on wellness products — which includes health as one of its key tenets — annually, and nearly one in three track their health with smart watches or other wearables.
Why isn’t DNA part of this picture? First-generation genetics companies, including 23andMe, failed to evolve with modern technology and transparency practices.
If Nucleus were to acquire 23andMe, it would clear the way for us to double down on our three key values, combining the clinical-grade quality we deliver with 23andMe’s existing consumer reach to provide widespread, seamless access to innovative genetic technology — exponentially faster.
Scientific innovation
Most of our customers, like the majority of Americans, have never taken a genetic test. Even 23andMe’s 14 million customers have had only 0.1% of their DNA sequenced.
Our innovative technology stack reads nearly 100% of DNA — ensuring complete, accurate, and continually valuable insights with each reanalysis, performed regularly to ensure customers benefit from clinical and scientific discoveries.
Security and privacy
23andMe designed their data practices to easily sell customer data to pharmaceutical companies, the core of their business model. We’re grateful for industry-leading collaborations that enable us to deliver high-quality, affordable analyses to our customers without compromising security and privacy.
Unlike first-generation genetic tests, we opt customers out of data sharing for research by default. Also unlike first-generation genetic tests, we choose to comply with more stringent data handling measures including HIPAA and perform all analyses on American machines with the leading genetics company in the U.S., Illumina, known for generating 90% of all the world’s sequencing data.
Value
Since founding Nucleus in 2021, I’ve remained committed to ensuring our lab meets gold-standard regulations from the Centers for Medicare & Medicaid Services and the College of American Pathologists.
These accreditations can take years and require deep clinical experience, but ensure we can deliver the same quality of results as hospitals and clinics. For $399, we combine the power of 70,000+ clinical genetic tests — which would cost consumers thousands of dollars on their own — into just one test.
Since scientists assembled the first complete sequence of human DNA, they’ve understood that our genetic code is the best predictor we have of the diseases that will afflict us and our children over the course of our lives, the life-saving drugs that are most likely to benefit us, and who we are.
We know that, in this decade, every person in the U.S. will be able to access the future of health scientists have long believed in. Our vision was proven in 2022, when Illumina announced that the complete sequencing of human DNA — formerly $10 billion — could be done for $200.
This is the core innovation of Nucleus, which will grow into a real-time quantified health platform that is the first of a new category of consumer health technology to deliver even more value in the coming years. We’re ready to seize an industry-wide shift in consumer health care to move ever faster.
I will continue to update customers and stakeholders on this exploration.
This communication contains forward-looking statements, including those regarding Nucleus Genomics’s potential acquisition of 23andMe and the company’s future growth plans. These statements are speculative and subject to various contingencies, including, but not limited to, securing financing, successful negotiations, regulatory approvals, market conditions, and other factors outside of Nucleus Genomics's control. No formal offer to acquire 23andMe has been made, and there is no certainty that any offer will be made or that any transaction will occur.
Any projections, forecasts, or forward-looking statements related to revenue, market positioning, or product capabilities are based on the company’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Any comparisons made to competitors are based on public information and industry analysis, and are not intended to suggest any wrongdoing or non-compliance on their part.
This statement does not constitute an offer or solicitation to buy or sell any securities. Investors and readers should exercise caution and seek professional advice before making any decisions based on the information provided herein.
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