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23andMe and GlaxoSmithKline Partnership Ends, Sparking Additional Layoffs

Roberta Estes

23andMe has been slimming down. In April, they announced they were cutting about 75 jobs in their therapeutics division, equating to about 9% of their workforce, and now they have cut another 71 employees in response to the end of the five-year GSK partnership.

GenomeWeb reported the earlier and most recent 23andMe layoffs, along with a 6% revenue dip, here. 23andMe is a publicly held company and reported a net loss of $104.6 million.

In 2018, 23andMe partnered with GSK, GlaxoSmithKline, a British drug company, to jointly develop drugs based on the genomic profiles of their customers who choose to participate in this type of research. You may have noticed that 23andMe asks a wide variety of questions that genealogy testing companies typically don’t, and they also report on health and traits.

At the onset of the partnership, GSK made a $300 million equity investment in 23andMe. If you need to cure insomnia, you can read the SEC filing, here.

The original partnership was to last four years and could be extended for an additional 5th year, which it was, landing another 50 million dollars in the 23andMe coffers.

According to the press release by 23andMe and this 2020 blog article, the partnership has been successful, adding more than 40 genetically validated drug discovery programs to the GSK portfolio, making me wonder why the partnership was not extended.

Customers

The 23andMe page for medical professionals states that they have more than 12 million customers worldwide.

23and Me has stated several times that about 80% of their customers opt-in to research, which means that their de-identified DNA sequences are made available to both 23andMe and their selected partners for research purposes.

Accordingly, about 8 million people have opted-in to research.

If you’re doing the math, that means that:

Viewed another way:

Attempting to Increase Revenues

In the past several months, 23andMe has attempted to staunch the corporate blood flow by:

Neither of these moves have been well-received by genealogists.

Purchase Price

23andMe sells two types of tests. One is for both health and ancestry, and the second is for ancestry, aka genealogy, only.

For comparison purposes, this article shows how many matches I have at each vendor.

If you want more than 1500 matches, you MUST PURCHASE the Health and Ancestry test, not the lower-cost genealogy-only test, plus the additional membership.

This is a very difficult pill to swallow (pardon the pun.) None of the other DNA testing companies limit your matches or charge for matching, and their prices right now for their autosomal tests are as follows:

Subscription aka Membership

In order to entice customers into purchasing subscriptions, called memberships, 23andMe allows up to 5000 matches instead of 1500. 23andMe has also limited additional features, taking them away from their original customers and putting them behind the subscription paywall.

In October 2020, when they implemented subscriptions, called memberships, along with these changes, they reduced their customers’ original match limit from 2000 to 1500. Of course, to receive more matches, you could purchase a new test and subscribe. No thank you.

In another attempt to throttle services to earlier customers, there were initially no ethnicity updates for people in October of 2020 who had tested on V2, V3 or V4 chips, although following public outcry, they reversed that position for at least the V3 and V4 customers. No other DNA testing company excludes customers from ethnicity updates. 

One cannot perform other functions, such as sort or filter by haplogroup on their site, unless you purchase the Health and Ancestry test, plus a membership. You can, however, download your matches and sort/filter that way..

What’s Next for 23andMe?

23andMe says they are now actively pursuing new big pharma partners.

I hope they can find their way forward. While I don’t often find relevant matches at 23andMe anymore, and I have an issue with their subscription policy, especially removing features from existing customers, they do have a pool of 12 million-ish people. These matches certainly help many people, especially because their health customers probably won’t have tested elsewhere.

Having said that, I can’t help but wonder how many of those 12 million are the same person multiple times because they’ve had to purchase multiple tests. I’ve purchased three for myself over the years, and I’m not purchasing a fourth – but I digress.

Unfortunately, 23andMe is not focused on genealogy – at all. Their focus has always been medicine and health. From their perspective, genealogists are candidates to opt-in for genetic research, but that doesn’t mean genealogists can’t still benefit – even if we don’t opt-in, don’t purchase the more expensive $229 Health and Ancestry test, and don’t purchase their membership.

If you’re interested in more recent relatives, 23andMe is great because the 1500 match limit won’t impact you at all. Closer relatives will cluster at the top of your match list.

If you’re looking for matches that descend from more distant ancestors, you may find it worthwhile to purchase the more expensive test and the membership, at least for one year.

Filtering/Sorting Restriction Workaround 

While there’s no way around the 1500 or 5000 match limit, except that 23andMe won’t roll someone off of your match list if you’ve communicated with them, or tried to, there is a workaround for the restrictive filtering.

I check my matches periodically, sorting by the newest matched relatives. I also download my match list occasionally. I find it easier to review the information in spreadsheet format because I can search for surnames, locations, haplogroups and other information much more easily than online, especially given the restrictive filters.

However, when you download your match list, that information is downloaded as well.

Be sure to record notes on each match at 23andMe when you discover relevant information by clicking on the match and scrolling to the very bottom of the page. Your notes at 23andMe are downloaded onto the spreadsheet along with the rest of their information.

The instructions for downloading your match list, which is NOT the same as downloading your DNA file, are contained in this article. Give it a try!

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