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Citi cautious on 23andMe stock as early data and takeover bids emerge

EditorEmilio Ghigini
Published 09/16/2024, 05:43 AM
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On Monday, Citi reiterated a Neutral rating on 23andMe Holding Co (NASDAQ:ME) stock with a price target of $0.42. The firm's commentary followed the presentation of additional trial data by 23andMe at the European Society of Medical Oncology (ESMO) Congress.


The data included results from the Phase 1/2a trial of 23ME-00610, an anti-CD200R1 antibody, and non-clinical results for 23ME-01473, an anti-ULBP6 antibody.


In the trial for 23ME-00610, one partial response was observed in the clear-cell renal-cell carcinoma (ccRCC) cohort, which consisted of ten patients. The response indicated a 38% reduction in measured tumor burden.


Furthermore, the company presented data from 13 patients with locally advanced or metastatic high tumor burden (TMB-High; n=11) and/or high tumor microsatellite instability (MSI; n=5). The results showed acceptable tolerability and full peripheral target engagement, but limited anti-tumor activity when used as a monotherapy.


The analyst from Citi noted that while the data are intriguing, they are still preliminary and involve a small sample size. The focus for investors, according to the firm, is likely to remain on potential updates regarding Anne Wojcicki's acquisition bid for 23andMe. Investors are also looking out for any alternative offers following Wojcicki's recent statement expressing openness to considering third-party takeover proposals.


The ongoing interest in 23andMe's corporate developments, including the acquisition talks, is a significant point of attention for shareholders and potential investors. As the situation evolves, updates on these corporate movements are highly anticipated in the investment community.


In other recent news, 23andMe Holding Co. reported a 34% decrease in Q1 2025 revenue, falling to $40 million, primarily due to the end of a partnership with GSK. However, the company's net loss for the quarter improved, standing at $69 million compared to the previous year's $105 million.


A subsidiary of 23andMe, Lemonaid Health, has introduced a new weight loss program that includes access to GLP-1 medications such as Ozempic®, Wegovy®, and compounded semaglutide, available through a monthly subscription model.


Furthermore, 23andMe shareholders approved a reverse stock split, consolidating outstanding Class A and Class B common stock at a ratio to be determined by the board. Anne Wojcicki and Peter Taylor were re-elected to the company's Board of Directors, as reported in a recent 8-K filing.


The company is also actively developing AI models and has launched a large-scale genetic study, demonstrating its commitment to advancing its therapeutics and research capabilities. These are recent developments that investors should be aware of.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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