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Global pharmaceutical giant GSK Plc has bolstered its five-year, $300 million collaboration with genetic testing company 23andMe through an additional $20 million investment. The extended partnership includes one year of data analysis assistance and non-exclusive access to an anonymized database containing genetic information from over 80% of consenting 23andMe users.
This collaboration helps GSK in the discovery and development of new drugs, with the pharmaceutical firm retaining ownership of any resulting discoveries. However, under certain conditions, 23andMe may receive downstream royalties. This unique partnership also enables customer involvement in clinical trials, such as a current trial for an antibody drug aimed at blocking cancerous tumors.
Today, Anne Wojcicki, CEO and co-founder of 23andMe, expressed her enthusiasm about the continued relationship with GSK and the potential for discovering genetically validated targets. She regards this partnership as an affirmation of the transformative power of genetics in healthcare.
This agreement has already demonstrated success by accelerating a potential cancer drug’s development from seven years to just four. All discoveries from 23andMe’s data will become GSK’s property, but 23andMe stands to earn royalties on some projects. This deal’s non-exclusive nature also allows 23andMe to license their DNA library to other pharmaceutical firms.
Despite these advancements, concerns have been raised about data breaches targeting specific ethnic groups among 23andMe users. These privacy concerns underscore the challenges faced by companies dealing with sensitive personal data.
InvestingPro Insights
Drawing from the latest InvestingPro data, GSK’s market cap is currently pegged at 69.09B USD. The company’s P/E ratio is 9.28, while the adjusted P/E ratio for the last twelve months as of Q3 2023 is 10.09. Furthermore, the company’s return on assets for the same period stands at an impressive 21.33%.
In light of these metrics, two InvestingPro Tips can offer additional insights. Firstly, GSK yields a high return on invested capital, an attribute that aligns with the company’s robust financial performance. Secondly, the company operates with a high return on assets, a metric that is corroborated by the InvestingPro data.
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