UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 8, 2024
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(Exact name of Registrant as Specified in Its Charter)
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(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (650 ) 938-6300
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 7.01 Regulation FD Disclosure.
On January 8, 2024 , 23andMe Holding Co. (the “Company”) posted the presentations attached as Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K to its Investor Relations website at investors.23andme.com, each of which information is incorporated herein by reference.
The information in this report furnished pursuant to Item 7.01, including Exhibit 99.1 and Exhibit 99.2 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. It shall not be deemed to be incorporated by reference into any of the Company’s filings under the Exchange Act or the Securities Act of 1933, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such a filing.
The website address set forth above is included as an inactive textual reference only. The information contained on the website referenced herein is not incorporated into this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
| Exhibit No. | Description of Exhibit | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| 23ANDME HOLDING CO. | |||||||||||
| Date: | By: | /s/ Joseph Selsavage | |||||||||
| Name: Joseph Selsavage Interim Chief Financial and Accounting Officer | |||||||||||
Investor Presentation January 2024 EXHIBIT 99.1
2 Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the future performance of 23andMe’s businesses in consumer genetics and therapeutics and the growth and potential of its proprietary research platform. All statements, other than statements of historical fact, included or incorporated in this presentation, including statements regarding 23andMe’s strategy, financial position, funding for continued operations, cash reserves, projected costs, plans, and objectives of management, are forward-looking statements. The words "believes," "anticipates," "estimates," "plans," "expects," "intends," "may," "could," "should," "potential," "likely," "projects," "continue," "will," “schedule,” and "would" or, in each case, their negative or other variations or comparable terminology, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are predictions based on 23andMe’s current expectations and projections about future events and various assumptions. 23andMe cannot guarantee that it will actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements and you should not place undue reliance on 23andMe’s forward-looking statements. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond the control of 23andMe), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Except as required by law, 23andMe does not undertake any obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. Use of Non-GAAP Financial Measures To supplement the 23andMe’s unaudited condensed consolidated statements of operations and unaudited condensed consolidated balance sheets, which are prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), this presentation also includes references to Adjusted EBITDA, which is a non-GAAP financial measure that 23andMe defines as net income (loss) before net interest income (expense), net other income (expense), changes in fair value of warrant liabilities, income tax benefit, depreciation and amortization of fixed assets, amortization of internal use software, amortization of acquired intangible assets, goodwill and intangible assets impairment, non-cash stock-based compensation expense, acquisition-related costs, and expenses related to restructuring and other charges, if applicable, for the period. 23andMe has provided a reconciliation of net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA at the end of this presentation. Adjusted EBITDA is a key measure used by 23andMe’s management and the board of directors to understand and evaluate operating performance and trends, to prepare and approve 23andMe’s annual budget and to develop short- and long-term operating plans. 23andMe provides Adjusted EBITDA because 23andMe believes it is frequently used by analysts, investors and other interested parties to evaluate companies in its industry and it facilitates comparisons on a consistent basis across reporting periods. Further, 23andMe believes it is helpful in highlighting trends in its operating results because it excludes items that are not indicative of 23andMe’s core operating performance. In particular, 23andMe believes that the exclusion of the items eliminated in calculating Adjusted EBITDA provides useful measures for period-to-period comparisons of 23andMe’s business. Accordingly, 23andMe believes that Adjusted EBITDA provides useful information in understanding and evaluating operating results in the same manner as 23andMe’s management and board of directors. In evaluating Adjusted EBITDA, you should be aware that in the future 23andMe will incur expenses similar to the adjustments in this presentation. 23andMe’s presentation of Adjusted EBITDA should not be construed as an inference that future results will be unaffected by these expenses or any unusual or non-recurring items. Adjusted EBITDA should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. Other companies, including companies in the same industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Adjusted EBITDA as a tool for comparison. There are a number of limitations related to the use of these non-GAAP financial measures rather than net loss, which is the most directly comparable financial measure calculated in accordance with GAAP. Some of the limitations of Adjusted EBITDA include (i) Adjusted EBITDA does not properly reflect capital commitments to be paid in the future, and (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures. When evaluating 23andMe’s performance, you should consider Adjusted EBITDA alongside other financial performance measures, including net loss and other GAAP results. Intellectual Property All rights to the trademarks, copyrights, logos and other intellectual property listed herein belong to their respective owners 23andMe’s use thereof does not imply an affiliation with, or endorsement by the owners of such trademarks, copyrights, logos and other intellectual property. Solely for convenience, trademarks and trade names referred to in this Presentation may appear with the ® or ™ symbols, but such references are not intended to indicate, in any way, that such names and logos are trademarks or registered trademarks of 23andMe. Industry and Market Data This Presentation relies on and refers to certain information and statistics based on 23andMe’s management’s estimates, and/or obtained from third party sources which it believes to be reliable. 23andMe has not independently verified the accuracy or completeness of any such third party information. Copyright © 2024 23andMe, Inc.
To Help People Access, Understand, and Benefit from the Human Genome Mission
4Copyright © 2024 23andMe, Inc. Building Value with Three Distinct Business Verticals 1 / Consumer 2 / Research 3 / Therapeutics Personalized Health: genome, exome, lab (blood) work Telehealth & Telepharmacy Ancestry & DNA Relatives Recurring subscription revenue Worlds largest re-contactable genetic and phenotypic data engine Database licensing Target discovery Commercial and pharma services Genetics-informed targets, biologically validated Lead IO asset ‘610 enrolling phase 2A IND-ready IO asset with unique MOA Early-stage Immunology and Inflammation pipeline To achieve our three-part mission, we are executing across three different businesses
5Copyright © 2024 23andMe, Inc. A Healthcare Flywheel Powered by Consumers All three businesses powered by our dynamic health data engine, allowing us to run hundreds of billions of association tests per year to build the future of genetics-driven healthcare. Consumer Research Therapeutics Personalized Health Services Drug Discoveries Data, Target Discovery Partnerships 14M+ Genotyping + Sequencing Customers Data Insights Insights Insights 4.5B >80% of Customers Opt-In to Research Genetic & Phenotypic Data Points
6Copyright © 2024 23andMe, Inc. 14M+1 REGENERON ~2M+ OUR FUTURE HEALTH ~1M+ MILLION VETERAN PROGRAM 1M UK BIOBANK 500,000 DECODE GENETICS 500,000 FINNGEN 473,000+ ALL OF US 413,000+ The Scale of 23andMe Enables Impactful, Novel, Personalized Health With our growing database, we are uniquely positioned to understand human biology across areas of consumer health, research and therapeutics unlike any other genetics program globally. 1 Genotyped customers as of September 30, 2023.
Consumer Transforming Healthcare with Genetic Health Services at Scale 1
8Copyright © 2024 23andMe, Inc. Genome Sequencing Exome Sequencing Lab work (blood) Ancestry & DNA Relatives Recurring subscription revenue Telehealth Telepharmacy Medical Team & Online Pharmacy licensed in all 50 states Recurring subscription revenue Building Our Direct-to-Consumer Services In 2021, 23andMe acquired Lemonaid Health to build a new kind of care: access to Genetics-Informed Clinical Care. +
9Copyright © 2024 23andMe, Inc. Delivering Value with Our Direct-to-Consumer Product Line-up Dynamic data engine allows us to continually improve and expand product offerings. Product prices as of 12/31/23.
10Copyright © 2024 23andMe, Inc. U.S. Leading Causes of Death Genetics plays a role in 9 of the 10 leading causes of death in the US1 ● = Addressed by 23andMe genetic report • Heart disease • Cancer • COVID-19 • Accidents (unintentional injuries) • Stroke (cerebrovascular diseases) • Chronic lower respiratory diseases • Alzheimer’s disease • Diabetes • Chronic liver disease and cirrhosis • Nephritis, nephrotic syndrome, and nephrosis 1 Mortality in the US, 2021 - https://blogs.cdc.gov/genomics/2014/05/15/geography/
11Copyright © 2024 23andMe, Inc. Genetic Data Helps Drive Behavior Change Eat healthier Set future goals to be healthier Adopt a healthier lifestyle in general Exercise more Get more rest/sleep Stop drinking / drink less Stop smoking / smoke less 55% 51% 50% 45% 42% 16% 7% 1. Based on 2019 online survey, designed by 23andMe and M/A/R/C Research, of 1,046 23andMe Health + Ancestry customers. 76% of customers report taking a positive health action1
12Copyright © 2024 23andMe, Inc. Genetic Information Impacts Health and Clinical Outcomes Coronary Artery Disease APOL1 And CKD ● Increased initiation of lipid-lowering therapy in those with high vs. low CAD PRS (15% vs 6% statin initiation) ● Earlier initiation of lipid-lowering therapy in those with high vs. low CAD PRS (52 vs 65 years) Communication of CAD PRS through a digital app led to: Disclosure of APOL1 genetic results1 to African descent patients with hypertension (but no CKD) and to their primary care providers led to: ● Greater reduction in systolic blood pressure ● Increased guideline-appropriate kidney function testing ● Positive self-reported behavior changes Muse ED, et al. (2022). Impact of polygenic risk communication: an observational mobile application-based coronary artery disease study. NPJ Digit Med 5(1):30 Nadkarni GN, et al. (2022). Effects of Testing and Disclosing Ancestry-Specific Genetic Risk for Kidney Failure on Patients and Health Care Professionals: A Randomized Clinical Trial. JAMA Netw Open. 2022;5(3):e221048. EXAMPLE EXAMPLE
13Copyright © 2024 23andMe, Inc. Delivering Personalized Health and Actionable Insights 23andMe Personal Genetic Service Pharmacogenetics Carrier StatusWellness 2Health Predispositions 1 30+ reports including: 10 reports including: 40+ reports including: 3 reports including: Type 2 Diabetes (Powered by 23andMe Research) Coronary Artery Disease Uterine Fibroids Migraine MUTYH-Associated Polyposis BRCA1/BRCA2 (selected variants) Muscle Composition Genetic Weight Alcohol Flush Reaction Saturated Fat and Weight Sleep Movement Dog & Cat Allergies Cystic Fibrosis Sickle Cell Anemia Familial Hyperinsulinism (ABCC8- Related) Tay-Sachs Disease Glycogen Storage Disease (Type 1a) SLCO1B1 Drug Transport e.g., simvastatin CYP2C19 Drug Metabolism e.g., citalopram and clopidogrel DPYD Drug Metabolism 1. Includes FDA Authorized Genetic Health Risk Reports and Wellness Reports for Genetic Likelihood Powered by 23andMe Research. 2. Wellness information does not require FDA Authorization. 9 FDA Authorizations
14 Copyright © 2024 23andMe, Inc. New: 23andMe Total HealthTM Our new, premium subscription service: advanced, comprehensive sequencing for $1,188/year ($99/month). Next-Generation Sequencing Detects 200x more hereditary disease-causing variants than our personal genome service reports ‡. Screens for 55+ clinically actionable and under-diagnosed conditions. Clinical-grade genetic analysis. Access to clinicians with training in genetics-based care Annual virtual session with a clinician with ongoing conversations about reports, progress or questions. Bi-annual Blood Testing Track results, optimize and measure progress beyond routine labs. Access thyroid, kidney, heart health and more with biomarkers such as Lipoprotein(a) (Lp(a)) and Apolipoprotein B(ApoB). 23andMe+ Premium Service Includes an additional 190+ personalized genotyping reports with ongoing new reports and features delivered throughout the year. ‡ Our genotyping product detects 250 health-related variants in our Carrier Status and Genetic Health Risk reports. The Exome Sequencing reports detect 50,000+ hereditary disease-causing variants.
15Copyright © 2024 23andMe, Inc. • Prioritizing growth in sustainable, recurring revenue business • Building out value-add features and products • Recently launched Health Action PlanTM, Health TracksTM and 23andMe Total HealthTM • FY 2023 PGS revenue of $202M with subscription revenue of $14.3M Focused on Driving Recurring Revenue Growth $5.0 $0
16Copyright © 2024 23andMe, Inc. • Focus on improving Gross Margin • Margin tailwinds from increasing subscription revenue and price optimization • Strong new product uptake would further positively impact consolidated GM over time Steadily Improving Consumer Gross Margin Profile
17Copyright © 2024 23andMe, Inc. Future of 23andMe Fully Integrated Genetics-Informed Clinical Care Genetic Health Evaluation Telehealth & Telepharmacy Services Lab Tests Precision Prescribing Using Pharmacogenetics Long-term Engagement All connected within a single technology platform.
2 Research Providing Unique Value and Insights for Research Partners
19Copyright © 2024 23andMe, Inc. The World’s Largest Recontactable Genetic Data Engine >80% consent to research >14M1 >4.5B1 customers datapoints • Participation is online • Fully opt-in, and opt-out at any time • IRB approved • Everyone can be included in multiple studies 1 as of September 30, 2023. 1
20Copyright © 2024 23andMe, Inc. Scale Enables Differentiated Research Across Multiple Disease Areas 1 23andMe multi-ancestry meta-analysis GWAS as of October 2023 Phenotype Number of Cases1 Asthma 1.1M Autoimmune Lupus Multiple Sclerosis Type 1 Diabetes 58k 31.5k 38.5k Solid Tumors > 1M Basal Cell Squamous Cell Melanoma Breast 388k 214k 125k 120k Hematologic Cancers NHL Leukemia 17k 14k Phenotype Number of Cases1 Retinal Diseases AMD Glaucoma 106k 186k Rare Diseases Scleroderma/SSc Sarcoidosis Idiopathic Pulmonary Fibrosis 12k 9.3k 5k Neurology + Psychiatry Depression Parkinson’s Essential Tremor 1.8M 33.5k 47k Numbers represent the number of research participants with the condition indicated
21Copyright © 2024 23andMe, Inc. Re-contactable Customers Participate in Health Research • Research participants can be recontacted on the basis of phenotype or genetics for additional data or biosample collection. • Example: Working with a mobile phlebotomist, we obtained blood draws from >60 human knockouts with a rare loss of function variant • Applied clinical lab testing for lipids, liver function, kidney function, glucose levels, heart function, and CBC counts Geographic distribution of participants
22Copyright © 2024 23andMe, Inc. Breadth of Phenotyping Provides Deeper Genetic Understanding Beyond Single Diseases Rare disease A AsthmaApproved drug Failed 3rd party clinical trial2 Potential new indication Our insights can increase development efficiency and chances of clinical success Drugs with human genetic support are more likely to succeed1 2x-3x 1 Nelson et al., 2015 (Nature Genetics); King et al., 2019 (PLOS Genetics). 2 https://www.astrazeneca.com/content/dam/az/PDF/2017/Q3/Year-to- date_and_Q3_2017_Results_Announcement.pdf
23Copyright © 2024 23andMe, Inc. 23andMe’s GWAS and PheWAS: GWAS results are building blocks for target discovery: 23andMe runs GWAS in >1,000 phenotypes 23andMe developed major methodological improvements to interrogate biology via GWAS GWAS signals across the whole genome identify gene / phenotype associations and potential drug targets Additionally, implicated pathways and point to underlying disease biology PheWAS (Phenome-Wide Association Study) captures pleiotropic effects of genetic variants and points to possible unwanted toxicities or potential indication expansions GWAS signal-to-gene mapping, including novel ML methods and experimental / FxG validation Improved imputation panels and strategic whole exome sequencing approaches Unparalleled, Proven Resource for Novel Target Discovery TSLP PheWAS
24Copyright © 2024 23andMe, Inc. A New Paradigm for 23andMe Research: 2017 Mid-2023 Late-2023 Future Exclusive drug discovery and development collaboration with GlaxoSmithKline (GSK) ● $25-50M annual contract fee ● Co-development of targets ● Over 50 targets discovered ● Limited 23andMe control of costs ● Resource intensive ● Difficult to forecast due to cost sharing Non-exclusive research collaborations ● Database access, focused target discovery, portfolio optimization ● Full 23andMe control of costs ● Deal specific resource scaling ● Higher margin ● Easy to forecast ● Ex: GSK -$20M/yr database access
25Copyright © 2024 23andMe, Inc. Unlocking Value Through Partnerships Potential Deal Types Database Access Target Discovery* Portfolio Optimization Target Partners Pharma / Biotech Pharma / Biotech Pharma / Biotech ● Non-exclusive deals ● Annual access fee ● Example: GSK paying $20M for 6th year of access ● Multiple targets in a therapeutic area ● Upfronts ● Royalties ● Milestones ● Portfolio screening ● Indication validation ● Patient population optimization Capabilities and Structure *Also pursuing other capabilities and structures
3 Therapeutics Turning Data at Scale into New Treatments for Patients
27Copyright © 2024 23andMe, Inc. The Evolution of 23andMe Therapeutics Full-fledged Biotech Multiple programs identified to be brought forward independently Incredibly productive multi- modality drug discovery collaboration with GSK across many therapeutic areas Two novel, clinical stage Oncology antibody assets Discovery focus on Immunology and Inflammation In-silico target discovery, functional genomics, antibody design and wet-lab validation 2015 Today August 2023 - Today GSK Collaboration July 2018 - July 2023 23andMe Tx Began 2015 50+ programs
28Copyright © 2024 23andMe, Inc. Our Therapeutics Discovery Platform Capitalizing on 23andMe’s Capabilities & Genetic Advantage NEED Target areas with defined unmet medical need, creatively use our database Immunology & Inflammation SPEED Prioritizing speed to IND & Clinical PoC POWER Best Targets: Robust & unique GWAS / pleiotropy, world leading genetics capabilities
29Copyright © 2024 23andMe, Inc. 23andMe Therapeutics Development Pipeline: First-in-Class Potential in Oncology Target Discovery 23ME’610 anti-CD200R1 Solid tumors, clinical stage, IO effectorless mAb Solid tumors, IO effector-enhanced mAb 23ME’1473 anti-ULBP6 Lead Optimization IND Enabling Phase 1 Phase 2 Phase 2a* ● Potent Ab with great PK/PD, safety, and on-target AEs in with monotherapy ● Ph2a monotherapy basket (including neuroendocrine and ovarian) currently enrolling ● Ph2a data to be presented in 2024 23ME’610/anti-CD200R1 ● Activator of tumor NK cells ● Effector-enhanced Ab with dual NK-activating MOA 23ME’1473/anti-ULBP6 *Note: ‘610 is in Phase 1/2a clinical trial as of January 2024.
30Copyright © 2024 23andMe, Inc. 23ME’610: Geno-Phenotypic Data Unveils Novel Immune Processes that Bear Out in the Clinic Rasco, D, et al., 2023, SITC Annual Meeting #619 Geno-Phenotypic Data Translates to Safety and Efficacy Signals in the Clinic Genetic data tracks AE profile observed in clinic (Ph 1/2a) with anti-CD200R1 Preliminary Monotx POC: 58% size reduction in longest dimension of paratracheal lesion IO-naive patient with pancreatic neuroendocrine cancer Disease-modifying potential as IO monotherapy across a broad spectrum of “cold” neoplasms (e.g., neuroendocrine, ovarian) Investigator-assessed immune-related adverse events seen in >5% of patients in cohort
31Copyright © 2024 23andMe, Inc. 23ME’1473: Tumor Cell Killing-Enhanced Antibody Targets Major Resistance Mechanisms Hampering Immune Oncology Targeting NK cells and NKG2D shows clinical promise *Wang, et al., CLN-619 ASCO 2023 ULBP6 inhibition could benefit patients in broad range of tumor types with neoantigen loss Dual MOA achieves synergistic NK activation and tumor cell killing 23andMe developed major methodological improvements to targeting ULBP6 Tumor type Tumor ULBP6 Soluble ULBP6 Loss of antigen presentation* HNSC +++ Under CDA ++ CESC +++ Under CDA +++ Additional tumor types under CDA +++ Under CDA +++ *Dhatchinamoorthy et al., Front Immunol 2021 MOA1 NKG2D activation MOA2 NKG2D activation + ADCC = 23ME-01473 Effector enhanced MOA 1 MOA 2 Effector enhanced Fc External clinical validation: Monotherapy activity observed in competitor NKG2D pathway activator (related mechanism) with complete and partial responses at a tolerable dose in early phase clinical trial* 23andMe ‘1473 targets the highest affinity NKG2D ligand with a tumor cell killing-enhanced antibody
32Copyright © 2024 23andMe, Inc. For More Detailed Information on 23andMe Therapeutics: and visit our Investors page to view our full Therapeutics investor deck https://investors.23andme.com/news-events/events-presentations www.Therapeutics.23andMe.com
4 Financials
34Copyright © 2024 23andMe, Inc. Solving for Fiscally Responsible Future Growth Investing in future growth potential ● Subscription Services ● New reports and insights ● Research partnerships ● Therapeutics Employing a conservative approach to planning ● Prioritizing the minimization of Adjusted EBITDA deficit rather than maximizing top-line growth in our Consumer business (PGS and telehealth). Investing in future growth potential ● Cash of $256 million1 supports 23andMe’s plans for targeted investment in high ROI growth initiatives. 1 2 3 1 As of September 30, 2023.
35Copyright © 2024 23andMe, Inc. Revenue Composition Three Months Ended September 30, Year Ended March 31, FY2024 FY2023 FY2023 (in $M, except percentages) Amount Percentage of Revenue Amount Percentage of Revenue Amount Percentage of Revenue Consumer Services $49 97% $57 75% $247 83% Research Services 1 3% 19 25% 52 17% Therapeutics - - - - - Total Revenue $50 100% $76 100% $299 100%
36Copyright © 2024 23andMe, Inc. Consumer Services Revenue Seasonality by Fiscal Quarter Q1 Q2 Q3 Q4 Full Year FY 2019 28% 19% 18% 35% 100% FY 2020 24% 24% 21% 31% 100% FY 2021 18% 21% 22% 39% 100% FY 2022 22% 20% 21% 38% 100% FY 2023 22% 25% 22% 31% 100% Note: Fiscal year ends March 31.
37Copyright © 2024 23andMe, Inc. Research and Development Expense Composition Three Months Ended September 30, YoY FY2024 FY2023 (in $M, except percentages) Amount Percentage of total R&D expense Amount Percentage of total R&D expense % Change Therapeutics $29 52% $24 46% 18% Consumer and Research Services 26 48% 28 54% (9%) Total R&D Expense $55 $53 Investing in Therapeutics
38Copyright © 2024 23andMe, Inc. Upcoming Value Drivers and Catalysts Consumer Research Therapeutics New product development, improved subscription value delivery, upgrades and cross-selling health services Continued customer LTV and margin improvement Progress toward adjusted EBITDA breakeven Research collaborations New GWAS Imputation innovations Initial ‘610 Phase 2A data PO14 IND Filing Potential collaborations
39Copyright © 2024 23andMe, Inc.
January 2024 23andMe Therapeutics EXHIBIT 99.2
2Copyright © 2024 23andMe, Inc. Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the future performance of 23andMe’s businesses in consumer genetics and therapeutics and the growth and potential of its proprietary research platform. All statements, other than statements of historical fact, included or incorporated in this presentation, including statements regarding 23andMe’s strategy, financial position, funding for continued operations, cash reserves, projected costs, plans, database growth, future collaborations, future development of therapeutic programs or products and objectives of management, are forward-looking statements. The words "believes," "anticipates," "estimates," "plans," "expects," "intends," "may," "could," "should," "potential," "likely," "projects," "continue," "will," “schedule,” and "would" or, in each case, their negative or other variations or comparable terminology, are intended to identify forward- looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are predictions based on 23andMe’s current expectations and projections about future events and various assumptions. 23andMe cannot guarantee that it will actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements and you should not place undue reliance on 23andMe’s forward-looking statements. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission, including under Item 1A, “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and as revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond the control of 23andMe), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward- looking statements. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Except as required by law, 23andMe does not undertake any obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
3Copyright © 2024 23andMe, Inc. 23andMe Therapeutics: Genetics Reimagining R&D Our credo: Every Day Matters Forward-thinking expert team Higher probability of success in the clinic Our Value Proposition ● Indication selection informed by lifetime genetic risk based on world’s largest human genotypic & phenotypic data platform ● Genetics (e.g. GWAS, PRS) and biomarkers to optimize target- indication-patient clusters ● Current focus: Oncology Development, Immunology Discovery ● Fast timelines and early kill decisions from discovery through clinical development to approval ● Experienced, innovative genetics researchers and clinical development team with track record for innovative approvals ● Genetics and clinical development scientists to identify higher success programs to bring into the clinic G EN ET IC S
4Copyright © 2024 23andMe, Inc. Using Human Genetics to Create Meaningful Therapeutics for Diseases with High Unmet Need in Oncology and Immunology NEED Creative use of pleiotropy Translational assays to address unmet medical needs Patients SPEED Antibody and protein engineering Pleiotropy informs clinical development and safety POWER Largest human genetics-based discovery platform 1000+ traits World's largest pleiotropy map
The Power of Our Approach
6Copyright © 2024 23andMe, Inc. Largest, most diverse recontactable database of genotyped + phenotyped individuals 23andMe Has the Largest Recontactable Genetic Database for Target Discovery in the World *Publications supporting human genetic evidence for approved drug indications Nelson et al., 2015 (Nature Genetics); King et al., 2019 (PLOS Genetics) ~80% consent to research • Target discovery • Target validation • Patient selection • Clinical trial recruitment Pharma partnerships leverage the database for research and recruitment Leaders in Data 1 As of September 30, 2023.
7Copyright © 2024 23andMe, Inc. 7 “O” Oncology phenotypes Cases BCC 410,104 Bladder 15,663 Brain 4,586 Breast 118,632 Colorectal 25,398 Endometrial 17,912 Esophageal 1,134 Head and Neck 8,596 Kidney' 14,934 Leukemia 13,763 Liver 3,077 Lung 12,367 Melanoma 125,364 Myeloma 7,127 NH lymphoma 17,643 Ovarian 13,044 Pancreatic 2,910 Prostate 71,616 SCC 218,805 Stomach 3,508 Thyroid 27,259Total: 1,133,442 IO phenotypes of interest (examples) 1Biological processes of interest captured in “I” phenotypes, not targeted in the clinic yet Autoimmunity Immune Polarization Atopy Inflammation Chronic Infection Tissue Repair “I” Immune phenotypes Cases Vitiligo 60,701 Alopecia areata 56,233 Hashimoto's 186,069 IBD 116,788 Atopic dermatitis 716,447 Poison oak rash 783,604 Allergy 2,053,011 Food allergy 213,185 Asthma 1,128,292 Tonsillectomy 270,499 Toenail Fungus 276,405 Psoriasis 277,525 Hidradenitis suppurativa 31,008 Lupus 58,414 POWER: Combining Our “I” and “O” Phenotypes Gives Us Broad Statistical Power to Drive Unique Immunological Insights for Oncology Development
8Copyright © 2024 23andMe, Inc. POWER: 23andMe Database Contains >150 Immune Disease Phenotypes With Up To 100s of Novel Genetic Insights Per Disease for Immunology Discovery Skin Respiratory Bowel Disease 23andMe GWAS cases Public GWAS cases 23andMe hits beyond largest public GWAS Asthma 1.1M 65k 716 COPD 83k 36k 171 Atopic dermatitis 716k 84k 399 Psoriasis 278k 19k 319 Severe acne 535k 34k 735 Urticaria 461k 41k 386 Hidradenitis 31k 1.6k 148 Rosacea 352k 73k 421 Alopecia areata 56k 3k 67 Vitiligo 61k 4.7k 75 IBD 117k 60k 54 1 23andMe multi-ancestry meta-analysis GWAS as of October 2023 Drugs with human genetic support are more likely to succeed1 2x-3x Nelson et al., 2015 (Nature Genetics); King et al., 2019 (PLOS Genetics)
9Copyright © 2024 23andMe, Inc. SNPs are tested across the genome and disease associations mapped to specific regions Cases Controls GGCCAGCTGGACGAGG GGCCAGCTGGATGAGG Single Nucleotide Polymorphism (SNP) GWAS = Genome-Wide Association Study SNPs associated with disease found at different frequencies in case vs controls Extensive know-how required to get from association to therapeutic target GWAS: The Initial Foundation for Genome Analysis
10Copyright © 2024 23andMe, Inc. PheWAS: Breadth of Phenotyping Elucidates Critical Disease Drivers TSLP PheWAS • We observe a clear genetic signal linking TSLP to asthma • We do not observe signals in phenotypes that would point to safety issues • Amgen clinical trials of anti-TSLP mAb as eczema target failed. We do not observe a statistically significant genetic signal linking TSLP to eczema • We observe a strong genetic signal linking TSLP to eosinophilic esophagitis → potential indication expansion in a rare disease 23andMe runs GWAS in >1,000 phenotypes PheWAS (Phenome-Wide Association Study) captures pleiotropic effects of genetic variants and points to possible unwanted toxicities or potential indication expansions
11Copyright © 2024 23andMe, Inc. ~15 months ~26 months N~150 HR~0.62 Phase 3 trial failure → Withdrawal of triple-negative breast cancer indication Atezo (PD-L1) + Chemotherapy Germline genetic score (PRS) for hypothyroidism risk separates survival probability N~900 HR~0.84 PMID: 30345906; PMID: 34099659 POWER: Immune Genetics Implemented as an IO Clinical Biomarker
12Copyright © 2024 23andMe, Inc. QTL-based and custom ML models for gene mapping and target hypothesis prioritization Interpretation of GWAS signals making extensive use of pleiotropy and allelic series and to increase reliability of biological conclusions Analysis of bulk/single cell/differential gene expression POWER: Combining Extensive Pleiotropy in the 23andMe Database and Computational Biology for Target Discovery Computational Biology ML / AI Biological insights genes, mechanisms, pathways and cell types Genetic insights GWAS signals / pleiotropy (one variant affecting multiple traits) si gn al 1 si gn al 2 si gn al 3 si gn al 4 si gn al 5 si gn al 6 … disease 1 … disease 2 disease 3 disease 4 IL 23 R IL 2 O SM R JA K2 TY K2 IL 6R … JAK/STAT … Th1/Th2 dif Recept int Th17 diff
Utilizing the World’s Largest Human Pleiotropy Map to Address Unmet Medical Need
14Copyright © 2024 23andMe, Inc. Genomic data successfully predicted ‘610 AE Profile 23ME-00610 Lead Asset (currently in Ph2a*) 23andMe “IO Signature” Type 1 diabetes thyroid diseases celiac RA psoriasis SCC increased risk decreased risk si gn ed lo g( p) CTLA4 gene BCC Melanoma NEED: Our Unique Approach to De-risk Development: Leveraging Pleiotropy to Characterize Novel Cancer Targets *Currently in Phase 2a portion of Phase 1/2a
15Copyright © 2024 23andMe, Inc. NEED: Our FxG Efforts Leverage Pleiotropy to Identify Targets in Defined Areas of Medical Need in Asthma Barrier function Cell composition & mucin production Eczema GWAS 23andMe Asthma & COPD GWAS Validated targets with pharmacologically meaningful effects in disease relevant assays Bulk and single-cell RNA-seq Gene Editing 23andMe genetics In vitro functional genomics Disease-relevant readouts
Progression of Therapeutics at Speed
17Copyright © 2024 23andMe, Inc. SPEED: Our In-House Expertise in Antibody and Protein Engineering Enables Rapid Therapeutic Generation Protein engineering and biochemistry Antibody discovery and optimization Antibody formats and Fc engineering ● Experienced Antibody and Protein Engineering group ● Deep experience in protein engineering, biochemistry, structural biology, enabling diverse approaches to antibody discovery, antibody engineering, and automation M13 Phage610 Fab hCD200R1 NGS/Automation
18Copyright © 2024 23andMe, Inc. Type 1 diabetes thyroid diseases celiac RA psoriasis SCC increased risk decreased risk si gn ed lo g( p) CTLA4 gene BCC Melanoma SPEED: Our lead IO program progressed from discovery to the clinic in 5 years Im m un e C an ce r CD200 Ligand DOK2 Protein C an ce r Im m un e CD200R1 Receptor Im m un e C an ce r BCC Hashimoto’ s Hypothyroidism Genomic data successfully predicted ‘610 AE Profile 23ME-00610 Lead Asset (currently in Ph2a of Phase 1/2a trial) 23andMe “IO Signature” ● Program initiated: 2016 ● Lead molecule generated by 23andMe ● First human dosed: 2021
23andMe Therapeutics: Clinical Development
20Copyright © 2024 23andMe, Inc. Maike Schmidt, PhD Sr Group Head, Translational Sciences Jennifer Low, MD, PhD Head of Development Dylan Glatt, PhD Sr Clinical Pharmacologist, 23ME-00610 PTL Experienced Clinical Development Leadership Jyseleca (filgotinib)Avastin (bevacizumab) Tecentriq (atezolizumab) Erivedge (vismodegib) Vitrakvi (larotrectinib) Zelboraf (vemurafenib) Cotellic (cobimetinib)
21Copyright © 2024 23andMe, Inc.Note: ‘610 is in Phase 1/2a as of January 2024. 23andMe Therapeutics IO Pipeline: First-in-Class Potential Target Discovery 23ME’610 anti-CD200R1 Solid tumors, clinical stage, IO effectorless mAb Solid tumors, IO effector-enhanced mAb 23ME’1473 anti-ULBP6 Lead Optimization IND Enabling Phase 1 Phase 2 Phase 2a* 23ME’610/anti-CD200R1 ● Targets Innate and Adaptive Immunity ● Potent Ab with great PK/PD ● Phase 1 monotx with on-target AEs ● Ph2a data expected to be presented mid- 2024 23ME’1473/anti-ULBP6 ● Activator of tumor NK cells ● Effector-enhanced Ab with dual NK- activating MOA
23ME-00610* Anti-CD200R1 Antibody for Hard-to-Treat Solid Tumors Phase 1/2a *Wholly owned; development ongoing in multiple relapsed/refractory solid tumors (including neuroendocrine and ovarian)
23Copyright © 2024 23andMe, Inc. Potential activity in >60% of current patients not deriving efficacy from PD-(L)1 inhibitors Patients + Caregivers DESPERATELY seeking survival Lilly’s Ucenprubart: Clinical POC for CD200/R1 agonism in immune disease CD200/R1 is a dominant immune checkpoint* *PMIDs: 12960329, 23602662, 22264927, 19786546, 15557172, 22491458, 15220441, 34326171, 18081533, 24388216, 11099416 Addressing Critical Unmet Need in Solid Tumors ‘610 Development Rationale CD200 CD200R1 Highly expressed on tumor, stromal, and endothelial cells Restricted immune expression: myeloid > T > B Targeted by samalizumab for CLL and MM, failed to achieve target saturation* 23ME-00610 (‘610) is first-in-class *PMID: 31443741; https://investor.lilly.com/static-files/9efbede9-bd6a-4d7b-823e-2996b1c2d114
24Copyright © 2024 23andMe, Inc. ‘610 Activates T-cell Function by Blocking the CD200R1 Checkpoint *CD200-expressing cell types include tumor, stroma and endothelial IFN, interferon; IL, interleukin ● Subnanomolar affinity ● Kills tumor cells in vitro ● Anti-tumor activity in vivo ● Potential for monotherapy ○ activity on huPBMCs that do not respond to PD-1 antibody ● Potential for combination ● Well tolerated up to 1400 mg ● PK supports Q3W (or better) ● Promising therapeutic index, projected dose ≥ ~600 mg ● Monotherapy dev ongoing ○ Further expansion in NE and OC for safety, PK, PD and dose selection ● Indication CDPs and TPPs ‘610 Primary Pharmacology* ‘610 Clinical Development* * PMID: 37288324 * Rasco, et al., 2023, SITC Annual Meeting #619; Glatt, et al., 2023 SITC Annual Meeting #609 23ME-00610 (‘610), a Fully Humanized, Effectorless IgG1, Inhibits Immunosuppressive Signaling via High Affinity Binding to CD200R1
25Copyright © 2024 23andMe, Inc.Rasco, D, et al., 2023, SITC Annual Meeting #619 May 15, 2023 data cut-off date. Stable disease rate across ALL Phase 1 patients is 52% with median duration of 18.6 weeks ‘610 Phase 1 Results: Dose Escalation Duration of Treatment
26Copyright © 2024 23andMe, Inc.Rasco, D, et al., 2023, SITC Annual Meeting #619 ● 23ME-00610 treatment was well tolerated ● 19% reduction in target lesions at Week 24 and Week 40 assessment ● 58% size reduction in longest dimension of paratracheal lesion ● Patient continues on study drug at Cycle 13 with stable disease at time of data cutoff (May 2023) ‘610 Preliminary Clinical Activity in Neuroendocrine Cancer
27Copyright © 2024 23andMe, Inc. Q1 Q2 Q3 Q4 Q1^ Q2^ Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2025 2026 ccRCC NE OV TMB-H/MSI-H 1400 mg SCLC OV NE 600 mg First Efficacy Assess. First Efficacy Assess. First Efficacy Assess. First Efficacy Assess. First Efficacy Assess. First Efficacy Assess. First Efficacy Assess. 6-mo PFS/OS 6-mo PFS/OS 6-mo PFS/OS 6-mo PFS/OS 6-mo PFS/OS 12-mo PFS/OS 12-mo PFS/OS 12-mo PFS/OS 12-mo PFS/OS 12-mo PFS/OS N=15 in each cohort Enrolling Fully Enrolled 6-mo PFS/OS 6-mo PFS/OS 12-mo PFS/OS 12-mo PFS/OS Safety: N= ≤ ~100 pts Efficacy: N= ≤ ~75 pts Safety: N= ≤ ~110 pts Efficacy: N= ≤ ~90 pts Safety in Phase 2a Population Efficacy in Phase 2a Population‘610 Phase 2a Data: Estimated Timeline* 2024 Safety: N= ≤ ~90 pts Efficacy: N= ≤ ~60 pts Safety: N= ~55-60 pts Efficacy: N= ~25-30 pts 140 g ccRCC = clear cell renal cell carcinoma OV = ovarian cancer (predominantly non-clear cell histology) NE = neuroendocrine First Efficacy Assess = ie., Preliminary ORR, patients continue to be scanned TMB-H/MSI-H = tumor mutational burden / microsatellite instability high tumors SCLC = small cell lung cancer (extensive stage) *Part of the Phase 1/2a clinical study of ‘610. Strictly estimated dates for discussion purposes only. Based on calendar year. Subject to change. ^Genotyping, tumor (archival) CD200/R1 IHC, tumor RNAseq, and pre/on-treatment tumor immunophenotyping exploratory analyses to identify potential correlates with activity
28Copyright © 2024 23andMe, Inc. PBMCs from each respective patient were incubated with 100 nM of 23ME-00610, anti–PD-1, or isotype control. Cells were stimulated with SEB. IFNγ levels were determined by enzyme-linked immunosorbent assay. Mean biologic triplicates were normalized to isotype control. * p-value<=0.05 compared to control PBMC, peripheral blood mononuclear cell; PD-1, programmed death–1; SEB, staphylococcal enterotoxin B. * * ** * * * * Blocking the CD200R1 pathway enhanced IFNγ production from SEB-stimulated PBMCs compared to isotype control and anti-PD1 in the majority of samples tested ‘610 Differentiation: Inhibition of CD200R1 Has the Potential to Address Resistance to Anti–PD1 Therapies
29Copyright © 2024 23andMe, Inc. • Preliminary data from ex-vivo combination of anti-PD-1 and anti-CD200R1 blockade increased IFNy (interferon-gamma) secretion from primary human T-cells 2 ug/mL per antibody. Representative data from one of four donors tested. Statistics: Ordinary one- way ANOVA with Tukey’s multiple comparisons test, **p<0.01, ****p<0.0001 ‘610 Differentiated Combo Potential: Anti-CD200R1 with Anti-PD-1 Potentially Enhances Immune Activation *23andMe internal data
30Copyright © 2024 23andMe, Inc. ● Complete enrollment of Phase 2a Dose Expansion Cohorts ○ Recently expanded Neuroendocrine, Ovarian cohorts ○ Initial Phase 2a data cohorts planned to be presented mid-2024 ○ Clinical development planning for Fast-to-Market strategies ○ Potential clinical combinations with assets with complementary mechanisms, to support earlier line indications ● Seeking partnerships to expand Phase 2a and conduct randomized Phase 2b/3 clinical trials – multiple readouts expected in 2024 ‘610 Next Steps
23ME-01473 Genetically validated NK Cell Activator (Anti-ULBP6) Antibody for [Metastatic] Solid Tumors
32Copyright © 2024 23andMe, Inc. 4Wang, et al., CLN-619 ASCO 2023 ULBP6 inhibition could benefit patients in broad range of tumor types with neoantigen loss Dual MOA achieves synergistic NK activation and tumor cell killing 23andMe developed major methodological improvements to targeting ULBP6 Tumor type Tumor ULBP6 Soluble ULBP6 Loss of antigen presentation1 HNSC2 +++ Under CDA ++ CESC3 +++ Under CDA +++ Additional tumor types under CDA +++ Under CDA +++ 1Dhatchinamoorthy et al., Front Immunol 2021 MOA1 NKG2D activation MOA2 NKG2D activation + ADCC = 23ME-01473 Effector enhanced MOA 1 MOA 2 Effector enhanced Fc External clinical validation: Monotherapy activity observed in NKG2D pathway activator (related mechanism) with complete and partial responses at a tolerable dose in early phase clinical trial4 23andMe ‘1473 targets the highest affinity NKG2D ligand with a tumor cell killing-enhanced antibody Targeting NK cells and NKG2D shows clinical promise 23ME’1473: Tumor Cell Killing-Enhanced Antibody Targets Major Resistance Mechanisms Hampering Immune Oncology 2HNSC, Head and Neck Squamous Cancer; 3CESC, Cervical Squamous Cell Cancer
33Copyright © 2024 23andMe, Inc. ADCC increases tumor cell killing 23ME-01473 Effector enhanced anti-ULBP6 Effector attenuated Isotype Effector enhanced CTRl NKG2D activation NKG2D activation + ADCC Green (GFP) Tumor Cells Immune cells 23ME-01473 Cytotoxic mediators MOA 1 MOA 2 MOA1 MOA1+2 ‘1473 Dual MOA: Effector Enhanced Antibody Binds to Tumor Cell Surface ULBP6/2/5 to Bolster NK Cell Antitumor Activity via ADCC
23andMe Therapeutics: Target Discovery
35Copyright © 2024 23andMe, Inc. Bill Richards Head of Therapeutics Discovery Patrick Collins Director, Functional Genomics Experienced Discovery Leadership Vladimir Vacic Research Fellow, Computational Biology Germaine Fuh Senior Director Antibody & Protein Engineering Antony Symons Senior Director Immunology & Inflammation Insights from the 23andMe database Computational Biology Functional Genomics Antibody Engineering Experienced team that delivered genetics-based targets from discovery to the clinic Immunology / Discovery Biology
36Copyright © 2024 23andMe, Inc. Hypothesis: loci associated with related phenotypes prioritize biologies not addressed by standard of care eczema >500 loci genetic determinants of allergy/T2 inflammation urticaria >300 loci genetic determinants of mast cell pathology neuro- inflamm >500 loci genetic determinants of airway hyper-reactivity COPD >200 loci genetic determinants of obstructive airway disease Leveraging Pleiotropy to Expand Airway Target Space sensory neuron biology: screen in iPSC-derived neuron models epithelial biology: screen mucociliary function in ALI culture mast cell biology: screen in IgE dependent & independent assays T2 cytokine biology: deprioritize or develop SM/inhaled modality asthma >600 loci Pleiotropy + functional genomics = best targets -+ + +
37Copyright © 2024 23andMe, Inc. Sequencing individuals from the tail ends of the polygenic risk score (PRS) distribution for whom the actual disease status does not match predictions Strategic Sequencing Based on Polygenic Risk Scores cases controls selected for sequencing Legend: Discovery of genes harboring rare variants of large effect
38Copyright © 2024 23andMe, Inc. FxG in Respiratory Disease & Beyond Cell type Disease opportunities* Macrophage Broad immune: skin, lung, GI Mast cells Urticaria, allergy, RA, eczema Fibroblasts Fibrosis, lung, skin, RA, IPF T cell Broad immune: skin, lung, GI Sensory Neurons Respiratory, IBD, eczema Endothelial cells RA, sarcoidosis, IBD, PAH Airway Smooth Muscle Asthma, COPD, PAH Dendritic cell Broad autoimmune: T1D, Graves Keratinocytes Skin
39Copyright © 2023 23andMe, Inc.PROPRIETARY AND CONFIDENTIAL