23andMe Merger Targets Personalized Primary Care Access, Telehealth

Consumer genetics and research company 23andMe has announced plans to acquire the telehealth platform Lemonaid Health to increase access to personalized primary care.

Following the merger, 23andMe consumers will have access to Lemonaid Health’s telehealth services and prescription medication delivery service.

The telehealth platform offers timely online visits with a licensed doctor or nurse practitioner, according to the press release. Individuals can receive consultation and treatment for mental and physical health conditions, including depression, anxiety, high blood pressure, and migraines.

Consumers can also use the telehealth platform to order tests for COVID-19, STIs, A1C blood sugar, cholesterol levels, and blood type. Individuals can receive prompt prescription drug deliveries at no cost with same-day medicine shipping, as well.

“We believe that by combing Lemonaid Health’s telemedicine platform, including its online team of medical professionals and its pharmacy services, with our consumer business, we are taking an important step in transforming the traditional primary care experience and making personalized healthcare a reality,” Anne Wojcicki, chief executive officer and co-founder of 23andMe, said in the press release.

“By starting with genetics as the foundation, we will give patients and healthcare providers better information about health risks and treatments, opening up the door to prevent as well as better manage disease.”

23andMe can provide users with FDA-authorized genetic health risk reports and offers extensive research about the genetics behind a range of diseases, conditions, and traits, the company says.

The biotechnology company will purchase the telehealth platform for $400 million, 25 percent of which will be paid in cash and 75 percent of which will be in shares of 23andMe Class A Common Stock, according to the agreement.

The companies expect to close the merger deal by the end of 2021.

“23andMe’s mission-driven focus on empowering and transforming the healthcare experience is perfectly aligned with Lemonaid Health’s founding principle to improve access to quality healthcare,” Paul Johnson, chief executive officer and co-founder of Lemonaid Health, stated in the press release.

Johnson will assume the role of general manager of the genetic testing company while continuing to run the telehealth platform.

The acquisition aims to increase access to affordable quality care that meets consumer health needs in a timely manner.

In the past, 23andMe has partnered with the digital care management platform Lark Health. The partnership helped incorporate genetic data into the platform’s mHealth coaching programs, which aimed to give users access to personalized guidance on weight loss and healthy living.

Lemonaid Health has also collaborated with other healthcare stakeholders, including Cambia Health Solutions. The company helped provide an asynchronous telehealth platform for large businesses and their employees who sought diagnoses and prescriptions for common, non-acute health conditions.