Business Units or Product Lines

23andMe Holding Co. operates primarily in two segments: Consumer & Research Services and Therapeutics. The Consumer & Research Services segment offers direct-to-consumer genetic testing services, providing customers with information about their ancestry, genealogy, and health predispositions. The Therapeutics segment involves drug discovery and development based on genetic findings.

Business Models for Each Product Line

The Consumer & Research Services segment generates revenue through the sale of DNA testing kits directly to consumers on their website and through third-party retailers. Major expenses in this segment include marketing, research and development, and operational costs associated with processing genetic data. The Therapeutics segment generates revenue through research partnerships, licensing agreements, and potential future income from proprietary drugs. Expenses include research and development costs, particularly those related to clinical trials.

Future Opportunities for Growth

23andMe could see growth by expanding its direct-to-consumer offerings, such as by introducing new genetic reports or personalized health solutions. There's also significant opportunity in leveraging its genetic data for drug discovery and forming strategic partnerships with pharmaceutical companies. International market expansion and integration of digital health services are additional growth opportunities.

Potential Major Risks

Major risks include heightened competition in the direct-to-consumer genetic testing space, regulatory changes impacting genetic testing services, and privacy concerns regarding genetic data. Additionally, the success of the Therapeutics segment is contingent on the outcome of costly and lengthy drug development processes, which may not always yield viable products.